The Performance Of The Seven Wolves Began To Decrease Year By Year, And 1200 Stores Opened Up.

Since the peak of its performance in 2012 and the start of nearly 1 billion 800 million yuan of targeted issuance, the performance of the seven wolves has been decreasing year by year in the past three years.

According to the reporter's understanding, after the seven wolves planned to run out of stores, the company changed the fund raised to 1 billion yuan for opening the shop to invest abroad, but as of the end of 2015, in the absence of investment projects, the changed recruitment project had to accept the reality and worked out the "idle fund raising cash management" work.

For the seven wolves holding huge amounts of funds, the company has to raise the amount of raised funds to invest in cash management, and the amount of investment is increased from 350 million yuan to 1 billion 300 million yuan.

In fact, corporate investors are worried about the future of the seven wolves.

In May 23rd, investors asked the company on the interactive platform: "when will the company's new projects contribute to the company? What is the net profit per year?"

In the face of investor enquiries, Chen Ping, a seven wolf manager, replied that the company was in the process of "industry + investment" pformation. The industrial sector was mainly in the adjustment stage. The investment section is still in the stage of project search and evaluation, and there is no new project that can have a significant impact on the company's net profit for the time being.

1200 shops open up

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In June 2012, a non-public offering plan was completed. The company plans to raise 1 billion 766 million yuan to invest in the construction of the "marketing network optimization project". The main funds are invested in the purchase of commercial property to optimize the layout and structure of the existing marketing network.

The seven wolves that year said "to increase sales terminal 1200".

However, as the performance of the seven wolves decreased year by year, the company began to keep on closing.

According to media reports, the number of seven wolf stores in 2015 was around 2300, of which 400 were direct stores, compared with 2821 in 2014, more than 400 stores were closed.

In response, seven wolves said that the company was eliminating invalid shops, adding missing shops, adjusting the location of shops, and trying new store operation mode.

The company has designated the terminal as a brand image shop that can display the brand image status, and a factory shop which sells mainly cost-effective products, and tries out the "concept experience living hall" and "superior shop" to meet the needs of different consumers.

In fact, there are nearly seven wolves sellers told reporters that the sale of seven wolves is not good, which makes the inventory of inventories can not be cleared.

"The clothing of the company is not new, and can not keep pace with the personalized consumer demand of today's consumers, which makes the company's clothing sales slow and the stock is increasing."

Comparing the performance of seven wolves in recent years, the company realized net profit of 561 million yuan in 2012, and realized net profit of 379 million yuan in 2013, down 32.44% from the same period last year, and realized net profit of 289 million yuan in 2014, down 23.84% from the same period last year.

In 2015, seven wolves realized net profit of 273 million yuan, down 5.43% compared to the same period last year.

The decline of performance made the seven wolves shop plan stranded, and the company's investment fund was idle.

Finally, seven wolves had to make a decision to change the fund-raising funds.

The announcement shows that the total planned investment of the marketing network optimization project is 2 billion 66 million yuan, and the planned use of raising funds is 1 billion 766 million yuan.

After the change of the fund-raising funds, the total investment of the marketing network optimization project plan is 1 billion 66 million yuan, and the planned use of raising funds is 766 million yuan.

As of 2015, 12, 31, 2015, the project had invested 350 million yuan, and all the funds were raised. The completion rate of the project was 32.86%, and the progress of raising funds was 45.74%.

With regard to the change of the fund-raising investment, the company explained that, for various reasons, the company's marketing network optimization project has made slow progress.

On the one hand, the price of commercial property is at a high level, and the risk of purchasing the storefront is still too high, which will increase the risk of raising funds. On the other hand, online consumption is developing rapidly, and the demand for offline stores is gradually decreasing. In the face of fierce competition from the electricity supplier, the rising cost of offline stores has also exacerbated the decline in the profitability of the offline property, prompting the offline shops to keep shrinking.

1 billion yuan to raise funds to divert investment

According to the July 15, 2015 announcement of the seven wolves, the company intends to change 1 billion yuan to raise funds for investment and set up a wholly owned investment subsidiary, Xiamen seven Shang Investment Co., Ltd. (hereinafter referred to as: seven is still investing).

The company will be the main external investor of the seven wolves, and will participate in the investment apparel industry and related fashion industry and retail consumption industry through direct investment or the formation of special funds.

In terms of fund allocation, the company intends to invest 400 million yuan in the acquisition, agency and brand cultivation of the brand. It intends to invest 400 million yuan for online and offline channel integration and new business mode participation, and intends to invest 200 million yuan for the supply chain of the back end and the docking of the capital platform.

For the reasons for changing the investment projects, the seven wolves explained that the change of business mode led to the end of extensive growth, and the high price of commercial property, the high proportion of self purchase shops, and the high risk.

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At that time, Chen Ping, the secret agent of seven wolves, told the media that the existing single brand development mode of the seven wolves had the upper limit of scale, and the company was going to expand new fields to adapt to the change of business mode.

Traditional businesses may not be able to do these new things in lifestyle or business models.

Through seven investment in this investment platform, mergers and acquisitions abroad.

However, reporters found that even if the seven wolves changed their collection projects in 2015, they set up a subsidiary company seven in Xiamen. But as of December 31, 2015, Xiamen's seven raised fund has not been put into practice except for idle cash management.

As a result, Xiamen's seven performance in 2015 ended in a loss.

The annual report shows that in 2015, Xiamen's seven business income was zero, operating profit of -11.35 million, net profit of -8.52 million.

The amount of investment raised to 1 billion 300 million yuan.

From the above, a new investment and investment project, Xiamen seven, is regarded as an important strategic investment plan by the seven wolves as an investment in the field of pformation. However, when the subsidiary has no money to invest, the company has to arrange new activities for Xiamen seven.

The announcement shows that the seven wolves will invest in some of the fund-raising funds and invest in the project. Based on the unpredictable and phased nature of the investment projects, Xiamen's seven foreign investment will not be completed once the investment is completed. It will generate temporary idle funds. On the grounds that the company's board of directors deliberated and passed the motion of "cash management in the cash management quota of the raised funds, which was authorized by the Xiamen seven Equity Investment Company Limited", "agreed that Xiamen seven is still using the idle raised funds for cash management before the company has raised the fund's cash management quota before changing the purpose of raising funds."

In addition, the cash management quota of the seven raised fund in Xiamen is the difference between the amount of 1 billion 300 million yuan RMB and the company's usage quota which was considered by the general meeting of shareholders in 2014. In the validity period, the amount of the fund can be scrolled.

At the same time, seven wolves also said that the company intends to continue to use part of the temporary idle funds raised for cash management investment guaranteed financial products, the amount increased from 350 million yuan to 1 billion 300 million yuan, and authorized the chairman within the limits of the line to make the relevant decision-making power and sign the contract documents.

In other words, seven wolves can use 1 billion 300 million yuan of idle raised funds for financial management.

But for the seven wolves holding huge amounts of money but nowhere to invest, investors are also very anxious.

Some investors ask, "you are holding billions of cash, do not merge or pay dividends, what is the plan? The gap between men's clothing brand and Hai Lan's home is getting bigger and bigger. Now everyone's perception of the seven wolves is only socks underwear and belt.

Where are you heading? "

Looking at the 2015 annual reports of seven wolves, it is clear that the doubts of these investors are not pointless.

From the seven wolves main business, 2015, sweaters, suits, trousers,

And the business income of their jackets decreased by 17.49%, 23.68%, 4.58%, 18.91% and 23.35%, respectively, compared with that in 2014, and only T-shirts increased by 2.7%.

In the seven wolves business income statement, "one other category" business income is 622 million yuan, accounting for 25.01% of the proportion of operating income, an increase of 119.5% over the same period last year.

The main reason is the expansion of the textile business during the reporting period. Its products are mainly underwear, underwear and socks.

It can be seen that in 2015, the business revenue of the seven wolves accounted for the largest proportion of underwear and underwear.

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In this case, the investors suggested that the management of the seven wolves said: "if there is no ability to run, we will sell the shell in pition".

Li Lingbo, chief financial officer of seven wolves, replied: "the company's future strategy has been disclosed in the annual report of the company, and we will follow the established strategy.

Maybe the speed and quality are not up to your expectations, we will continue to work hard.

However, for the future profits of the seven wolves, Chen Ping, the company's deputy director, said in reply to investors that the company was in the process of "industry + investment" pformation, and that the industrial sector was mainly in the adjustment stage. The investment section is still in the stage of project search and evaluation, and there is no new project that can have a significant impact on the company's net profit for the time being.