Why Did Lining'S Share Price Rise When He Pulled Out Of Capital?

The stockholders are out of place,

The stock price is rising, behind which is the industry's confidence in its performance and confidence in the future.

Even so, we want to go back to China.

The first throne, Lining's road is still very long.

Turnover

The withdrawal of capital shareholders has led to a rise in share prices. On the face of it, Lining's performance in the capital market is somewhat unreasonable.

Recently, public information shows that TPG Capital LP, a private Holdings Company with Lining 7.8%, has sold the remaining 168 million 600 thousand shares in the market, with a price of HK $5.25 per share.

This marks the TPG's cash offer of HK $885 million and Lining's farewell.

"The Li Ning Co issued 561 million yuan convertible bonds to TPG in February 8, 2012, and the annual interest rate on convertible bonds is 4%."

Lining official told the new financial observer.

In 5 years, "at the beginning more than 500 million buys, now nearly 900 million sells, the apportionment to 5 year's annualized income is not bad, TPG is the investment organization, this is understandable."

Beijing key road sports consulting company CEO Zhang Qing explained to the new financial observer.

According to the world clothing and shoe net, compared with the closing price of the previous day, only a small discount has been made by the buyer, and the departure of TPG has not brought negative effects to the stock price of Lining.

Lining is optimistic about the future, and this confidence comes from Lining's rebound in his performance.

At the beginning of 2015, in the face of a series of reforms, Lining, a founder of a company that even suffered losses for several years, returned to the market, adjusted the channel and repositioned the brand, and finally made the company's performance turn into a deficit in the 2015 fiscal year.

However, at that time, the profit was less than 15 million yuan.

A year later, Lining realized 8 billion 15 million yuan in revenue, an increase of 13.06% over the same period, and a net profit of 643 million yuan, an increase of 43.95 times compared with the same period last year.

At this point, Lining finally made a beautiful turnover, at least in terms of performance.

Miss 10 billion

Although the 8 billion 15 million yuan in 2016 has been the best performance of Lining in the past 5 years, it still has a distance from the 10 billion yuan sales mark.

Previously, Lining had been close to this goal, but unfortunately he failed in the end.

Lining has been on the rise since the beginning of the development, "to the 9 billion 478 million yuan in 2010 to a climax."

Mr. Ren, director of southwest regional investment promotion for a large sporting goods wholesale and retail enterprise, said to the new financial observer.

He bluntly, because the relationship between the boss and Mr. Lining is not normal, so the whole enterprise is very concerned about the development of Lining.

Lining's slide runs through the backdrop of the entire sporting goods industry.

The industry began to decline in 2011, including local brands such as Lining, Anta, XTEP and so on, all of which were in a high inventory crisis.

"In addition to Nike ADI, our biggest partner is Lining. At that time, each brand had a relatively high inventory, but Lining was definitely the hardest hit."

Mr. Ren recalled.

At that time, many brands had prepared large stocks for betting on the 2008 Olympic Games in Beijing, and Lining had increased his own crisis because of the brand remolding in 2011.

"The original environment is not good, Lining's reshaping plan consumers did not buy it, the result is that the original old stock is a lot, coupled with the poor sales of new products, the situation is even more serious."

Mr. Ren said.

Thus, after a slight decline in 2011, Lining lost 3 consecutive years from 2012-2014 years to a total of more than 3 billion 100 million yuan.

During this period, Lining has undergone many high-level changes and business adjustments.

After losing 10 billion in 2010, Lining was getting farther and farther away from this goal until last year.

It's not easy to get back to the boss.

Although all of them suffered a downturn, Lining was not only late for most brands for a year, but was also pulled down by Anta from the first place of the local sports brand during that time.

In 2012, Lining lost about 1 billion 980 million yuan, while Anta made a profit of 1 billion 359 million yuan. At the same time, Anta earned 7 billion 620 million yuan more than Lining's 6 billion 740 million yuan and became the industry leader.

It is easy to fight the rivers and mountains, but it is difficult to defend the rivers and mountains. The ups and downs of Lining proved this very well.

However, Lining, who is now very slow, is full of confidence in the future. This can be seen from the recent remarks made by founder Lining.

Recently, the founder Lining expressed his views on the market and brand in an interview with the media. "With the continuous development of urbanization in China and the continuous improvement of family income, the real utilization rate of consumers for sporting goods is increasing. Consumers have more interest, time and ability to participate in practical sports, thus bringing space for real sporting goods."

Therefore, he firmly believes that China's sporting goods market is growing and has not shrunk.

However, such a bright prospect will never be exclusive to Lining's brand, and all brands will be ready to fight.

More importantly, in 2015, when Li Ning just realized losses, Anta's revenue has already exceeded 10 billion yuan, making it the first local sports brand to go up to ten billion yuan.

Moreover, in terms of profitability, Anta's net profit in the 2016 fiscal year is more than three times that of Lining.

It is not hard to see that Anta is firmly consolidating the position of its industry leader.

In addition, international fast fashion brands and luxury brands are constantly upgrading their sports and leisure products. Under such circumstances, it is not easy for Lining to return to the position of the industry leader.

In the eyes of Zhang Qing, for today's Lining, perhaps it is much more reasonable to be stronger than pursuing the first.

He believes that Lining's biggest opponent should be himself.

"If Lining wants to become a professional sporting goods company, he must stick to his professional line, including the experience of consumers, from products to terminal retail to the promotion of brands. The key is to see whether this direction can be carried out consistently."

He analyzed.

As for the first industry, that is, a name, and so on one day, they are strong enough to come.

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