Lining Has Improved But Still Has 960 Million Inventory To Deal With.

In 2015, after losing the deficit in 2015, the loss hat that had been stuck on Lining's head was finally taken off. However, when the Securities Daily reporters interviewed Lining's 2015 annual report, the company's inventory in 2015 remained at a high level of 960 million yuan, and the worries of high inventory remained unchanged.

In response, people close to Lining told reporters that the company had adjusted its inventory structure in 2015 and has achieved some success.

According to insiders, compared with Anta, the gross margin of Lining products has been reduced, mainly due to excessive discount.

Another consumer told reporters: "now

It's very cheap. After a discount, it costs only 50 yuan for a dress and 100 yuan for trousers. "

Turning losses into profits in 2015

Lining's 2015 annual report shows that the company's annual revenue is 7 billion 89 million yuan, an increase of 17% over the same period, and equity holders should account for 14 million 310 thousand yuan in profits.

According to the previous annual report, Lining lost 1 billion 979 million yuan, 392 million yuan and 781 million yuan respectively in the three years from 2012 to 2014.

Lining's losses directly ignited the confidence of the market in the company's future, and once again depressed Lining once again became the focus of market attention.

At the earnings conference, Lining has repeatedly stressed that upgrading products, channels and operational capabilities is the key to turning losses into profits.

This is also the main direction of Lining's reform plan in recent years.

According to a reporter close to the Li Ning Co, he told the Securities Daily reporter that Lining's losses have many factors.

The person said, from the industry perspective, during the year, the support of national policies for the development of sports goods industry to create an enabling environment.

From the company's orders, with the tag price calculated, the order of Lining brand products from the franchisee will continue to grow for nine consecutive quarters.

The latest order meeting of the third quarter of 2016, which was held in December 2015, has recorded an annual growth of 10% to 20%.

"Lining brand products in the entire platform (including e-commerce) in the same store sales recorded low annual number of units increased.

As far as channels are concerned, the number of retail units (direct operations) and wholesale (Franchised Distributors) channels has been reduced by the number of units per unit and the number of units per unit year by year, and the virtual store business of e-commerce has increased by nearly 70% annually.

The above personages told the Securities Daily reporters that Lining's electronic business department was able to improve the overall planning ability and quick response ability based on online market changes, and set up an excellent system.

Lining's annual electricity supplier income increased by 95% compared with the same period last year.

For the company's losses, Lining has said that it mainly benefited from the net proceeds from the sale of its 10% stake in the red double happiness brand, as well as the group's increase in gross profit and expenditure ratio by improving the sales and profitability of direct outlets, strengthening the long-term cooperative relationship with channel partners and expanding the business of e-commerce.

It is understood that Lining Group Executive Chairman Lining shares 66.5% companies sell special operations badminton and

Red double happiness 10% stake, the price is about 125 million yuan (RMB, the same below).

Lining expects net sales to exceed $200 million.

960 million yuan inventory to be cleaned up

According to a reporter close to the Li Ning Co, Lining's deficit factor also includes optimization of inventory.

It said: "in 2015, Lining vigorously promoted the clearance of old and tail goods through factory outlets, discount stores, temporary special stores and other channels. The overall inventory level of the group decreased significantly, and the inventory structure continued to optimize, laying the foundation for the future growth of the group.

In the case of a net increase of 313, the original stock value (before and excluding red double happiness) is still reduced by 20%.

However, when reporters looked at Lining's annual report 2015, Lining found that although the original stock value was reduced by 20%, the company's inventory in 2015 remained as high as 960 million yuan.

Lining's comprehensive balance sheet in 2015 annual report shows that as of December 31, 2015, the company's inventory was 960 million yuan, and in addition, the company's inventory in 2014 was 1 billion 289 million yuan.

That is to say, although Lining realized losses in 2015, the inventory problem that had brought losses to the company still existed.

Reporters access to Lining's previous inventory data found that Lining's inventory from 2011 to reach 1 billion 133 million yuan will be maintained at more than 900 million yuan.

Data show that from 2012 to 2015, Lining inventory reached 920 million yuan, 942 million yuan, 1 billion 289 million yuan, and 960 million yuan respectively.

From the above, Lining's highest inventory in recent years is 2014. In 2014, when he cleared the stock, Lining, executive vice chairman and acting chief executive of Jin Zhenjun group, told the media that more than 1 years of inventory had been cleared up and only about 20% remained.

But at the same time, it said that some of its distribution partners were weaker, accounting for about 10%, and they were not enough in coordination with the pformation.

For Lining, the biggest difficulty in cleaning up inventory is that the problem of channel providers is bigger than expected.

Jin Zhenjun said that there are problems such as weak retail capacity, weak resources and insufficient coordination.

Therefore, Lining also increased the proportion of self operated stores while eliminating dealers.

Insiders estimate that Lining's stock increase shows that the company's sales are not very good.

The same quarter sales growth declined in the first quarter

Following Lining's announcement of losses in 2015, Lining's retail sales in the first quarter of 2016 have also become the focus of attention in the industry.

According to the announcement of Lining's "order and operation status of the latest orders" issued in April 15, 2016, the franchisee will be Lining at the order meeting.

Product orders recorded year-on-year growth for ten consecutive quarters.

The latest order in 2016 of March, which was held in 2016 in 2016, is a year-on-year increase in the number of units, driven by the growth of low unit number of footwear products and the growth of 10% to 20% of apparel products.

However, some market participants pointed out that Lining brand sales in the same store only recorded low single digit growth, much lower than that in 2015, which means that the profitability of Lining retail stores has declined.

It is worth noting that in the case of Lining retailer's profitability less than last year, the growth rate of the business platform business in the first quarter of 2016 also slowed down sharply.

There are market participants analysis, Lining first quarter growth in the same store is mainly driven by the growth of electricity supplier channel sales.

Data show that in the first quarter of 2016, the growth of Lining's e-commerce platform business did not grow from 60% to 70%.

Compared to the year 2015, the electricity supplier income increased by 95% over the same period, the growth rate of Lining's electricity supplier income has declined significantly.

Net increase of 300 to 500 points in the year

At the same time, Lining did not give up the pace of external expansion in 2015.

The annual report shows that as of December 31, 2015, the number of sales outlets of Lining regular stores, flagship stores, factory stores and discount stores was 6133, representing a net increase of 507 over the 12 month 2014 of 2014.

56 dealers, a net increase of 5 compared to December 31, 2014.

In addition, Lining also plans to achieve a net sales increase of 300 to 500 in 2016.

The company's explanation for this expansion is: "we are committed to improving the efficiency and profitability of the existing sales outlets, while continuing to optimize the sales channel network."

Lining's massive expansion plan has caused concern among the industry that Lining is not rational to restart the store expansion plan in the current low consumption environment.

It is worth noting that the implementation of this large-scale shop plan has been drawn up after large-scale closure in previous years.

By the end of 2011, the number of Lining brand stores was 8255, an increase of 340 over the same period.

But at the end of 2012, Lining's brand store 6434, a net decrease of 1821.

At the end of 2013, Lining brand stores continued to decrease by 519.

At the end of 2014, Lining's brand store decreased by 289.

In this regard, according to people close to the Li Ning Co, told reporters: "even if Lining opened a shop, it was also implemented under the premise of ensuring the effectiveness of a single store, and for shops with poor store performance, it was necessary to close stores."

The personage expresses, Lining is ready to cooperate with Wanda to open 20 home experience store, through letting consumers experience the way of experiencing sports in the store to sell.

It shows that letting consumers experience products is Lining's main objective at present.

It is understood that at the press conference, Lining has repeatedly stressed that the current environment, traditional manufacturers can not simply provide products, but to create an ecosystem.

According to Lining, this kind of ecology is first of all the experience of professional products, such experience is multi-faceted, such as sponsorship events, offline activities.