La Natsu Bell Has Raised 1 Billion 600 Million New Stores.

According to the world clothing and shoe net, Shanghai has landed in Hong Kong stock market for more than two years.

The Limited by Share Ltd (hereinafter referred to as "La Natsu Bell") has also set its sights on the A share market, and intends to raise funds mainly for expansion of stores.

When many shoe and clothing enterprises were struggling to survive, La Natsu Bell chose to keep listing and raising funds to continue to expand their stores. The simple and crude mode had allowed La Natsu Bell to rapidly expand the scale of enterprises in a short time. However, in the face of the rapidly increasing cost, the company's profits had a significant downward trend. How did La Natsu Bell go on the road of the 1 billion 600 million plan to re open shop?

Re sprint A shares

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When clothing brands officially landed on A shares, La Natsu Bell, a listed Hong Kong stock exchange, was finally unable to stop.

In June 20th, La Natsu Bell announced that the audit committee of the China Securities Regulatory Commission's main board issued an audit of the application of the company's A shares.

According to the audit results, the application of A shares issued by the company has been approved.

This is not the first time La Natsu Bell has sprint A shares.

In 2012, La Natsu Bell had already queued up to sprint IPO, but at the end of May 2013, La Natsu Bell appeared in the list of the termination review companies announced by the SFC, and lost A shares.

After the setback of A share listing, La Natsu Bell did not give up the way of listing, but chose to make a detour on the Hong Kong stock market and was listed on the main board of the HKEx in October 2014.

But due to the cold of subscription, La Natsu Bell's fund-raising situation at HKEx was not as good as expected.

According to the prospectus released by La Natsu Bell at that time, only about 95% of the public offering shares were subscribed and no full subscription was made.

La Natsu Bell, who had been in Hong Kong for more than a year, did not give up the idea of returning to A shares.

In November 2015, La Natsu Bell once again disclosed the prospectus, and proposed to issue more than 54 million 770 thousand shares of new shares, with a total fund-raising of 1 billion 640 million yuan, of which 1 billion 560 million yuan was used to expand the company's retail network. In the next three years, La Natsu Bell will use the newly raised fund to open 3000 retail outlets.

La Natsu Bell Di made the three impact on the A share market IPO.

In the prospectus, La Natsu Bell said that the company's current financing channels and ways in China are relatively single, the business is concentrated in the domestic market, the lack of matching domestic equity financing platform, high financing cost and foreign exchange risk.

Returning A shares to establish a domestic equity financing platform will help La Natsu Bell improve the diversity of domestic financing channels and reduce the risk of debt financing.

On the related issues, the reporter contacted La Natsu Bell's office and submitted an interview outline, but the deadline for the deadline was not answered.

No increase in profits

Listing and financing, crazy shop, lack of money, re financing, and then open shop, this simple and crude mode has allowed the company to expand rapidly.

Through a large number of shops to boost revenue growth La Natsu Bell although revenue has exceeded 10 billion yuan, but also due to the increase in the cost of opening shop reduced net profit.

Up to now, La Natsu Bell has more than 8900 offline retail outlets throughout the country, and all of them are direct battalions.

The crazy expansion has brought immediate results to the company's revenue, but it has also increased costs and expenses.

In 2016, La Natsu Bell's operating income increased from 9 billion 100 million yuan in 2015 to 10 billion 200 million yuan, the first time breaking tens of billions of yuan, an increase of 12.5% over the same period last year.

According to the annual report, net profit in 2016 dropped to 530 million from 620 million in 2015, down 13.5% from the same period in 2016.

During the period, La Natsu Bell added more than 1000 stores, but the cost of rents and other expenses increased by more than 335 million yuan in the previous year, reaching 2 billion 772 million yuan.

In addition, despite the sharp increase in the number of stores, the same store sales growth rate reflecting the growth of La Natsu Bell's mature store sales is declining.

Data show that in 2011-2012 years, La Natsu Bell's same store sales growth rate as high as 41.6%, 2012-2013 years, the data dropped to single digit growth is only 6.6%, the latest financial data show that in 2016, La Natsu Bell same store sales growth rate has been in a negative growth state, -6.4%.

Cheng Weixiong, general manager of clothing industry senior observer and Shanghai Liang Qi Brand Management Co., Ltd., in an interview with reporters, said that the same store decline is a dangerous signal which can reflect many problems.

"When we look at the management level of a clothing company, a very important indicator is to see the same store growth."

Min Guangya, chief consultant of Guangzhou blue Olympic retail consulting and clothing marketing expert, also believes that La Natsu Bell's single store performance is not very good and its profitability is poor. Therefore, La Natsu Bell hopes to expand the scale to enhance the overall performance of the company, hoping to increase the profitability of the store through the expansion of the sales scale, but this brings about a sharp rise in costs and difficulty in management, or will lead to a further decline in the profitability of the company.

High inventory problem

The rapid expansion of retail outlets has further increased inventory in addition to increasing La Natsu Bell's operating costs.

Prospectus data show that the end of 2014-2016, La Natsu Bell inventory book value of 1 billion 327 million yuan, 1 billion 756 million yuan and 1 billion 714 million yuan, accounting for 28.64% of the current assets, 40.56% and 42.01%.

Jia Xiaoyi, a clothing consumer research expert, believes that the decline of La Natsu Bell's performance is closely related to the brand management strategy and environmental factors, but these important factors may be ignored in the past fast expansion shop.

There is still room for improvement in the structure of La Natsu Bell brand series products. At present, the combination quality of customer structure and customer demand structure covered by La Natsu Bell's product category structure is not high. In the future, if La Natsu Bell does not plan and improve in these areas, the performance is likely to continue to decline.

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