Seven Wolves: The Main Industry Is Bad, Net Profit Continues To Decline.

Fujian

Industrial Limited by Share Ltd recently released the 2016 China Daily reported that the company's operating income in 2016 1~6 was 1 billion 144 million yuan, an increase of 1.24% over the same period, and the net profit attributable to shareholders of listed companies was 105 million yuan, down 5.63% compared to the same period last year.

In fact, in the face of

Since last year, the seven wolves have defined the strategic pformation direction of "investment + industry", and are committed to creating a "fashion group" and building seven wolves.

Consumption ecosystem.

In October 2015, seven wolves changed 1 billion yuan to raise funds to invest in the establishment of a wholly owned subsidiary, Xiamen seven Equity Investment Limited (hereinafter referred to as "Xiamen seven Shang"), through direct investment or the formation of special funds to participate in some clothing industry and related fashion industry, retail and consumer industry new opportunities.

However, according to the 2016 report of the seven wolves, as of June 30, 2016, Xiamen's seven fund-raising fund has not been invested practically in addition to the cash management of idle collection funds.

According to the comparative test results of the pull rod box released by the Beijing Consumers Association in September 6th, there are 60% problems in the pull rod box.

Among them, seven wolves, Muji and so on.

Prior to this, the seven wolf products were exposed by quality supervision departments for quality problems.

Main business is bad, net profit continues to decline.

In recent years, the performance of the seven wolves has continued to deteriorate.

According to the semi annual report released by the company, in the first half of 2016, seven wolves achieved a total operating income of 1 billion 144 million 75 thousand and 700 yuan, an increase of 1.24% over the same period last year, and operating profit of 12319.29 yuan, representing a decrease of 5.13% compared with the same period last year. Net profit was 105 million 225 thousand and 400 yuan, a decrease of 5.63% compared with the same period last year.

Among them, the company's original sweater, suits, shirts, trousers and other businesses were significantly affected, sales fell 20.08%, 20.04%, 11.71% and 7.14%, respectively.

Reporters combed the company's annual report noted that in fact, since the peak of net profit in 2012 reached 561 million yuan, net profits of seven wolves began to decline.

Net profit in 2013 was 379 million yuan, down 32.44% compared with the same period last year.

In the previous performance forecast, seven wolves said that the company's order in 2016 would receive fewer orders from customers.

The poor performance of the company in the past three years is due to the adjustment and pformation process of the wholesale mode, resulting in the income and profit of the original business.

In the past three years, seven wolves men's clothing earnings report, there is such a saying: affected by external environment, the traditional men's clothing industry boom continued to decline.

Accompanied by the decline in performance is the quality of products constantly broke out. In September 6th, the Beijing Consumers Association announced the comparative test results of pull rod boxes, including seven wolves, MUJI products and other brands on the quality blacklist.

Prior to this, the seven wolf products were exposed by quality supervision departments for quality problems.

At the beginning of last year, the quality supervision department of Shanghai found that there were quality problems in the "seven wolves" and "Sha Sha" products in the sampling inspection of down garments, travel bags, socks and scarves.

Excellent international brand Cci Capital Ltd CEO Yang Dayun believes that the performance of the seven wolves is only a microcosm. With the A share listing, enterprises will face changes in the basic 2~3 years.

"This is not the curse of the Chinese stock market, but the sprint of every enterprise that has expanded its performance to the limit of its own brand growth.

At the same time, under the background of macroeconomic slump and overcapacity, traditional garment enterprises have no profit margins, and brands, suppliers and agents have entered a historic era of no profits.

Holding huge sums of money to pform without fruit

In recent years, as the main business continues to be weak, the seven wolves have changed their development strategy, and put forward the operation mode from pure industry to "industry + investment".

Subdivide channels, strengthen internal management, implement partnership system, and cooperate with a number of professional investment institutions.

Seven wolves said the company is eliminating invalid shops, adding missing stores, adjusting the location of shops, and trying new store operation mode.

Statistics show that in 2015, the number of seven wolf stores was around 2300, of which 400 were direct stores, compared with 2821 in 2014, more than 400 stores were closed.

According to Galaxy Securities Research Report, 2016 semi annual report shows that seven wolf accounts cash plus financial products more than 3 billion 500 million yuan, long-term equity investment plus investment real estate close to 1 billion 100 million yuan.

Among them, the amount of foreign equity investment during the reporting period was 111 million yuan, an increase of 55.01% over the same period.

Its main investment companies are the cross-strait youth (Xiamen) equity investment partnership (limited partnership), cross-strait youth (Xiamen) Equity Investment Fund Management Co., Ltd., Shanghai Jiaxi Entertainment Investment Co., Ltd. and Shanghai Rong Zhi marketing planning Limited by Share Ltd, the proportion of ownership is 20%, 33.33%, 2%, 11.11% respectively.

Reporters noted that, according to the company's November 3, 2015 announcement, Xiamen seven still raise funds cash management quota for the 2014 annual general meeting of shareholders to consider the 1 billion 300 million yuan amount and the amount of the company's share of the difference, within the validity period, the amount of funds can be rolled to use.

In April 2, 2016, the seven wolves continued to announce that the company intends to continue to use part of the temporarily idle funds raised for cash management investment guaranteed financial products, the quota increased from 350 million yuan to 1 billion 300 million yuan, and authorized the chairman to make decision making power and sign the contract documents within the limits of the quota.

For the seven wolves holding huge amounts of money but nowhere to invest, the industry believes that according to the seven wolves conceived in the fashion and consumption areas investment, often faced with no good project can be put into trouble, so want to use spare cash to expand strength is not so simple.

However, Ma Gang, an independent critic of the footwear industry, told reporters that investment is a way to diversify business risks and find a high return area. In this regard, the seven wolves are more cautious.

Reporters noted that the company in implementing the "investment + industry" direction of pformation, another action is to set up Qianhai reinsurance shares.

According to the 2016 China Daily, the Qianhai reinsurance Limited by Share Ltd has received the reply from the China Insurance Regulatory Commission on the preparation of Qianhai reinsurance Limited by Share Ltd in March 25, 2016.

The Qianhai reinsurance preparatory group shall complete the preparatory work within 1 years from the date of receiving the notice of approval for preparation.

Up to now, the company has paid 7875000 yuan for the construction fee.

In view of this, the above analysts believe that enterprises choose to cross the border, in this process, often need to invest huge amounts of manpower and financial costs, the booth will be enlarged, and the risk will undoubtedly increase.

In the media interview, the head of the industry association of China Garment Association said that the garment industry is undergoing a deep adjustment period, and many enterprises are having difficulty in running. The biggest reason is cross-border.

If you just do the main business and maintain a healthy sales, even if the profit is shrinking or even no profit, it will be fine for several years.

As regards the company's operating conditions and pformation dynamics, the company has said it is not available for interviews.