Three Big Risks To Prevent Ray Depot From Sprinting IPO

Main business leisure Men's wear Of Raidy Boer Dress Limited by Share Ltd (hereinafter referred to as "ray diboer") has recently updated the IPO prospectus, which, like last time, did not change the net profit of the company. Moreover, Ray Tibor is also faced with the risks of large net accounts receivable, large net inventory, improper control of real controlling persons and their families.

Net profit fell more than 50% in four years.

Ray Tibor is a business casual men's dress. Design Research and development, brand promotion and product sales as the core brand operators, this plan is listed on the Shenzhen Stock Exchange. The total number of initial public offering to the public is not more than 50 million shares. It intends to raise 481 million 810 thousand yuan for marketing channel construction projects, design R & D center expansion projects and information system to enhance construction projects.

Looking at the company's financial data over the years, Ray Tibor's profitability is not good, and business income, operating profit, gross profit and net profit almost all slide. In 2014, the above four indicators decreased by 17.22%, 21.61%, 9.13% and 9.16% respectively, and the further decline in 2015 was 17.43%, 26.46%, 34.52% and 35.29% respectively. The first prospectus disclosed by the company was negative growth in addition to the 10.43% increase in operating income in 2012, with a drop of more than 10%.

Overall, Ray Tibor's operating income dropped from 549 million 500 thousand yuan in 2011 to 370 million yuan in 2015, a drop of 32.67%, and net profit of 92 million 289 thousand and 600 yuan in 2011 dropped to 41 million 981 thousand and 900 yuan in 2015, a drop of 54.5%. The company attributed the decline to the company's operating performance during the reporting period, which was affected by macroeconomic slowdown and intensified market competition.

From the perspective of A share companies, there are 51 clothing listed companies in two cities, which disclosed half yearly performance forecasts in 2016. Of them, 24 of them had increased or continued earnings, accounting for nearly half of them, and 8 companies such as Hinur had increased by 50%. Whether Ray Tibor's performance has improved this year? How to ensure the performance of the company after listing? Public securities daily and Caixin network reporter recently sent an interview letter to the company, but as of press release, no reply has yet been received.

The company's prospectus prompts that if the macroeconomic boom continues to decline and market competition further intensifies, it will not exclude the possibility that Future Ltd's operating performance will continue to decline.

Assets turnover capacity is lower than peers.

Compared with A shares, Ray Tibor's accounts receivable turnover and inventory turnover are lower than the industry average. From 2013 to 2015, the turnover rate of accounts receivable of companies was 4.95, 3.83 and 3, respectively, which were lower than the average 5.35, 5.33 and 6.14 of the industry. The data of seven wolves, wedding birds, nine herdmen, and card slave road in 2015 were also higher than those of Ray Tibor.

Inventory turnover is also the case. From 2013 to 2015, Ray Tibor's index was 1.23, 1.05 and 0.85, respectively, which were lower than the average 1.38, 1.19 and 1.23 of the industry. The data of seven wolves, Hinur and nine herding companies in 2015 were also higher than those of Ray Tibor.

"The above two indicators reflect the ability of the company's assets turnover, revealing the turnover of the capital operation of enterprises, reflecting the efficiency of the management and utilization of economic resources by enterprises. The quicker the turnover of enterprise assets, the higher the liquidity, the stronger the debt paying ability of enterprises, the faster the assets will get profits. And the two indicators of Lei Di Bo are lower than peers, to a certain extent, indicating that the assets turnover capability and capital operation capacity of enterprises are not high. A financial accounting analyst told reporters.

Ray Tibor's cash flow data fell sharply in 2015. The net cash flow generated by business activities in 2015 was 13 million 608 thousand and 500 yuan, a decrease of more than 70% compared with 59 million 218 thousand and 400 yuan in 2014. In addition, net cash and cash equivalents in 2015 decreased by 50 million 292 thousand and 700 yuan, and 11 times more than the 4 million 36 thousand and 300 yuan in 2014.

Family businesses are more colorful.

In addition, Ray Tibor's family business has a strong color. The prospectus shows that Liu Changming directly owns 49.03% of the company's shares, indirectly holding 19.88% of the company's shares, and altogether holds 68.91% of the company's shares, which is Ray Tibor's actual controller. Liu Changming's mother, uncle, spouse and other relatives are holding shares of the company (see Table 1 for details).

Moreover, Ray Tibor has 7 members of the board of directors, 3 of whom are independent directors, and the remaining 4 are the Liu Changming family members of the actual controller (see table two for details). 3 of the 5 senior managers of the company are members of the Liu Changming family.

The company prospectus reminds that if Liu Changming takes advantage of his actual controller status, improper control over the company's personnel arrangements, business decisions, investment orientation, asset transactions, amendments to the articles of association and dividend distribution policies may cause damage to the company and other shareholders. If the members of the Liu Changming family fail to control the company's personnel arrangements and business decisions and other important matters through improper seats in the board and management, they may damage the interests of the company and other shareholders.