Ray Tibor 3 Consecutive Years Of Decline In Performance Will Impact IPO Doubt

Local garment enterprises Raidy Boer In July 14th, the impact of pre disclosure documents on A shares IPO was updated, but the progress was not smooth. Because of the declining profits for many years, the SFC sent feedback, requiring the company to comprehensively analyze and supplement the reasons for the decline in revenues and profits.

The Beijing News reporters reviewed the pre disclosure documents. From 2013 to 2015, Ray Tibor's performance declined for 3 consecutive years, and the net profit fell by more than 30% in 2015. At the same time, the number of stores decreased by 57 in two years, and was accused of "closing shop tides". The industry said that the continuous decline in performance or lead to too difficult.

Ray Tibor said in the prospectus that one of the purposes of the IPO fund-raising is to use it. Marketing channel Construction is to build new stores in the whole country. However, analysts say that the "store number war" is outdated, and the traditional stores have higher operating costs. If they are not particularly attractive to consumers, it is difficult for enterprises to make profits. The Beijing News reporter contacted ray Di Boer, and the company said, "the content of the prospectus is publicly disclosed."

Performance fell for 3 consecutive years, net profit fell more than 30% last year.

In July, 14 Japanese soil clothing brand Lei Di Po updated the pre disclosure document against A shares. As early as 2014, Ray Tibor submitted the IPO prospectus, which was questioned in recent years. The performance of the pre disclosure document is still unchanged.

The Beijing News reporter interviewed two prospectus companies and found that the company's performance has declined for 3 consecutive years from 2013 to 2015. Net profit from 2011 to 2015 was 92 million 290 thousand yuan, 81 million 170 thousand yuan, 71 million 420 thousand yuan, 64 million 880 thousand yuan and 41 million 980 thousand yuan respectively, and operating income dropped from 550 million yuan in 2011 to 370 million yuan in 2015. In 2015, operating income and net profit fell by 17.43% and 35.30% respectively, and net profit fell by more than 30%.

For the reasons for the decline in performance, Ray Tibor said that during the reporting period, the company's operating performance was affected by factors such as macroeconomic slowdown and intensified market competition. The main operating indicators such as operating profit and net profit of the company declined. If the macroeconomic boom continues to decline and market competition intensifies, the possibility of continued decline in Future Ltd's performance will not be ruled out.

" SFC There is no explicit provision that we must not be listed, but the garment industry is sluggish. The continuous decline of the performance of garment enterprises will surely become the object of supervision. We believe that the difficulty will be very great if the performance of enterprises is declining year after year. A large brokerage firm's investment bankers said.

According to the Shanghai Securities Journal, Ray Tibor's continuous decline in performance has been watched by regulators. In response to Ray Tibor's disclosure of the prospectus, the SFC issued feedback opinions, including the reasons for the continued sharp decline in the profit margin of the company during the supplementary disclosure period, whether the industry as a whole had adverse changes, and whether the company had a weak overall competitiveness in the industry. The Beijing News reporter contacted the office of the board of directors of Lei Di Boer. He wanted to get more specific information and whether the company had any positive measures.

Two years ago, 57 stores were cut off.

With the continuous decline of performance for many years, Ray Tibor has been in sharp decline in recent years. According to the prospectus, Ray Tibor disclosed the marketing network construction through the mode of joining and self running. Through the establishment of special stores or counters in the famous shopping malls and airports of the second tier cities, the operation and expansion of the stores at all levels were promoted.

By the end of 2015, 516 stores had been opened in 26 provinces, municipalities and autonomous regions. However, it is noteworthy that in the past two years, the store of ray Di Boer has dropped by 57. By the end of 2013, Ray Tibor's total number of stores was 573, of which 468 were franchises and 105 were self owned stores. By the end of 2015, the number of franchised stores had been reduced to 425 and the number of self operated stores reduced to 91. Ray Tibor was also accused by the media of "closing shop tides".

The reason for closing the store, Ray Tibor said, is that the number of self operated stores has been decreasing year by year, mostly due to the slowing down of domestic macro-economic growth, resulting in the decline of business performance, and the company's initiative to withdraw. Last year, due to the decline in the overall performance of the shopping center, 18 stores were removed, and the shopping center demanded that the cabinet should take the initiative to withdraw 7. New stores opened in 2015, but the opening of new stores slowed down.

The reason for the franchisee's closing is due to factors such as the spanfer of business circle, the unfavorable operation of franchised stores, the adjustment of municipal planning, the renovation of streets, the expiration of store lease, the failure of the owners to renew, and the renewal of the contract of the franchisee. In 2015, the number of business outlets and franchisees was 26.

From the overall perspective of China's garment industry, after the rapid growth in the early stage, it was affected by the slowdown in the macro-economic growth and the decline in consumer income expectations. Since 2012, the market has shown weak demand and weak growth. According to the statistics of the China National Business Information Center, the retail sales of clothing commodities in major large-scale retail enterprises in 2013 increased by 5% over the same period last year, and the growth rate was 7.3 percentage points lower than that in 2012. In 2014 and 2015, the retail sales of clothing commodities in major national retail enterprises increased by 1% and 0.3% respectively, the growth rate was better than that of Ray Tibor.

Raise funds to expand stores "high cost intensifies inventory"

According to Ray Tibor's latest pre disclosure documents, the company intends to visit the Shenzhen Stock Exchange, plans to issue no more than 50 million shares, plans to raise 481 million 800 thousand yuan, of which 390 million 900 thousand yuan for marketing channel construction projects. The project plans to build 221 new terminal stores nationwide in the next three years, including 183 ordinary franchises, 20 strategic cooperative shops, and 18 self operated stores. Its market strategy is to develop in the southwest and North China with the core of Southwest China.

Ray Tibor's heavy expansion of gold stores has also raised questions. Analysts say that from the current trend of the apparel industry, the "store number war" has long been out of date. From the international luxury brands to the public garment enterprises, they have adopted strategic closes, bid farewell to scale war, and integrate resources to a less and more refined direction.

"Traditional stores have higher operating costs, and when the entire supply chain process and channel system go to the store step by step, the cost from personnel costs to store rents and various channel links is too high. If it is not that products are particularly attractive to consumers, it is very difficult for enterprises to make profits." Lai Yang, Secretary General of Beijing Institute of business economics, said: "clothing consumption is undergoing fundamental changes. For consumers, small businesses with unique fashion designers and creative designs are more attractive. At the same time, in the face of the Internet e-commerce, large chain enterprises not only lose the competitiveness of the price, but also lose their absolute advantages in quality.

In the view of Lai Yang, the core of the competitiveness of garment enterprises is creativity and design. From the scale and standardization of mainstream products to the direction of designer brand, there are fewer varieties, more shops, larger volume of shops, and fewer varieties.

Chen Weiru, a professor of strategic studies at the China Europe International Business School, has expressed concern about the volume of distribution. Chen Weiru believes that the clothing industry is indeed producing a large number of standardized products, and that 80% of the goods become stock and become a pain spot for businesses. And a large increase in the number of stores will inevitably lead to intensified inventory problems. In this regard, Chen Weiru suggested that clothing enterprises to customize platform spanformation, flexible production.

Ray Tibor currently owns three independent brands of Raidy Boer, GHILARO and Mesimia, and the Italy brand which has been authorized exclusively in mainland China, Hongkong and Macao. Ferrante "