The Main Business Of The Pathfinder Continues To Deteriorate And The Sideline Industry Is Also Not Optimistic.

According to the world clothing shoes and hats net, in the first half of 2017,

The revenue reached 1 billion 278 million yuan, an increase of 17.48% over the same period last year, net profit of 79 million 10 thousand yuan, a decrease of 16.3% compared to the same period last year, and net cash flow of -1.2 billion yuan, far below the net profit for the same period.

Up to now, outdoor products remain the most important source of profits for listed companies.

However, since its adjustment in 2015, there has been no improvement in the first half of 2017, and the decline continues to expand, showing a continuous deterioration trend.

Moreover, compared with the average level of the industry, the outdoor main business of the company is not performing well, which means that the share of the outdoor market is eroded and the company's real business ability is worrying.

At the same time, the company has diversified new tourism services in the past two years.

The performance is equally unoptimistic.

Among them, the scale of travel service business is large, but its profitability is very low.

Yi you world, as the main body of this business, is acquired by the listed company. However, its performance in 2016 is far from the promised value. The performance in the first half of 2017 is far different from that in 2017. The huge goodwill on the books of listed companies is facing the risk of impairment.

In terms of sports sector, the ski resorts which have been operating since March 2016 are still in a state of loss, and consumers' attention is very low, and the prospect is doubtful.

Outdoor main business continues to deteriorate

The outdoor products sector achieved 543 million yuan in the first half of 2017, accounting for 42.51% of the total revenue. The gross profit of outdoor clothing, outdoor footwear and outdoor equipment was 191 million yuan, 57 million 550 thousand yuan and 16 million 180 thousand yuan, respectively, accounting for 264 million yuan, accounting for 89.88% of gross profit.

In the first half of 2017, the performance of the outdoor goods sector remained unchanged, and the overall revenue decreased by 19.83% over the same period last year.

There are two brands of outdoor products: TOREAD (Pathfinder) brand and Discovery Expedition brand. The former specializes in outdoor outdoor areas such as mountaineering and hiking, while the latter focuses on outdoor recreation.

Field.

In the first half of the year, TOREAD (Pathfinder) brand realized 486 million yuan of revenue, 21.01% lower than that of the same period last year, and 1353 stores under the brand line of the Pathfinder, which continued to decline compared with 1370 in the end of 2016. The DiscoveryExpedition brand realized 64 million 910 thousand yuan, a 15.56% increase in the same ratio, 147 stores in the chain under the brand line, and an increase in the number of 120 stores at the end of 2016. However, due to the low base, it is difficult to reverse the declining trend of the whole outdoor sector.

Compared with previous years, the outdoor business of the Pathfinder continues to deteriorate.

Reporters noted that the company's outdoor products industry has entered the adjustment period since 2015, and the bottom of its performance has not yet been identified.

In the earnings report, the company blamed the factors on the overall outdoor retail consumption, such as the continued competition in the market and other environmental factors.

This is understandable, but what worries investors is that the performance of the outdoor products business in the adjustment period is obviously less than the average level of the industry.

Pathfinder disclosed the development of the outdoor products industry in the 2016 annual report. According to the 2016 China outdoor products Market Research Report provided by COCA, in 2016, the total retail sales of domestic outdoor markets amounted to 23 billion 280 million yuan, representing an increase of 4.91% over the previous year. The growth rate dropped by about 5.6 percentage points over the same period last year, that is, the total retail sales in the domestic outdoor market grew by 10.51% in 2015.

By contrast, we can find that the growth rate of outdoor business revenue of Pathfinder in 2015 and 2016 is obviously lower than that of the industry level. This shows that in the whole industry adjustment period, the company has not only taken advantage of the leading edge to seize the market share, instead, the market share has been eroded by competitors, and the real operation ability of the company is worrying.

In the 2016 annual report, Pathfinder also said that the total number of domestic outdoor market brands reached 975, representing an increase of 2.09% over the same period last year, but the growth rate dropped by 1.03 percentage points over the same period last year. Brand manufacturers increased R & D design input to pursue functional upgrading, and competition among brands became more intense, and competition in the industry intensified.

In the past few years, the company has continuously reduced the R & D investment, which dropped 13.79% to 64 million 290 thousand yuan in 2016 compared with the previous year, and continued to decline from 0.96% to 17 million 700 thousand yuan in the first half of 2017.

Moreover, in the past two years, the company has begun to diversify and invest heavily in tourism, sports and other industries.

In this regard, the person responsible for the Pathfinder told reporters that after 2009-2014 years of high-speed development, the outdoor products business entered a stage of solid consolidation, which is basically in line with the development of the industry in recent years. The R & D investment of the company is more than 3% of its revenue every year.

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The bitter fruit of tourism merger and acquisition

Tourism services are the key areas for Pathfinder to diversify in the past two years, but the profitability of the business is very low.

In the first half of 2017, the revenue of the company's travel service business reached 723 million yuan, an increase of 81.31% over the same period last year, but the gross profit margin was only 2.99%, and 1.63 percentage points lower than that in the same period in 2016.

The main body of the company's travel service business is the affiliate's easy access to the world. In the first half of 2017, the subsidiary realized 697 million yuan of revenue, operating profit of -311 million yuan, and net profit of -312 million, still at a loss.

Yi you world is bought by listed companies.

In March 2015, the Pathfinder issued a notice that the joint ownership of equity and capital increase combined to get 74.56% of the world's equity.

At the time of the takeover, traders promised to earn 4 billion yuan in 2016, net profit after tax was greater than zero, 6 billion yuan in 2017 and 60 million yuan after tax.

According to the financial report, in 2016, Yi you realized only 1 billion 88 million yuan of income, net profit loss of 20 million 350 thousand yuan, far less than the performance promise value. In the first half of 2017, the income and net profit of Yi you world were 697 million yuan and -312 million yuan respectively, and the income was only 11.62% of the 2017 annual commitment income, and the net profit was far from the commitment amount.

As of June 30, 2017, Pathfinder bought 147 million yuan of goodwill on account of Yi you world, and 10 million 250 thousand yuan in 2016.

In this regard, the responsible person said, Yi you in the world after the company's shares in the business pformation, new business category in the pioneering period, so in 2016 revenue decline and loss, is expected to return to growth and profit in 2017.

In addition to easy to travel the world, Pathfinder also invested in the Singapore Stock Exchange Kaili board (similar to the domestic GEM) listed Asiatravel.comHoldingsLtd, Asiatravel is an online travel platform that integrates hotels, air tickets and tourist attractions in a timely manner, and the service scope includes 17 countries and regions in the Asia Pacific and the Middle East.

As of June 30, 2017, the company's total investment in Asiatravel was 60 million shares, with a shareholding ratio of 13.87%, and the equity market value was 20 million 930 thousand yuan.

It is worth noting that the total cost of Asiatravel equity investment is 58 million 750 thousand yuan, and the fair market value of these shares is only 20 million 930 thousand yuan, which shrank by 64.37%, and the company made provision for impairment reduction of 35 million 720 thousand yuan in 2016.

Ski resorts are still losing money.

Sports is another important area of company diversification.

In August 2015, Pathfinder and natural person Sun Bo jointly established the "Beijing Pathfinder ice snow holding Development Co., Ltd." (hereinafter referred to as "ice and snow company"), and planned to select suitable locations for the construction and operation of ski resorts throughout the country.

Up to now, the first ski resort to be built by the joint-venture company on the north slope of Songshan, Gongyi, Zhengzhou, Henan, has been operating since January 23, 2016. The first phase of the ski resort project has opened 8 snow roads, and the total snow area is 130 thousand square meters.

However, the profitability of the company's ski resorts is not optimistic.

According to the financial report, in 2016, the ice and snow company had zero income and net profit of -758 million yuan; in the first half of 2017, the income was 1 million 330 thousand yuan, and the net profit was -982 million yuan.

Construction projects show that the investment in Songshan ski resort is 59 million yuan, while the company's income in the first half of 2017 is only 1 million 330 thousand yuan. From the current business situation, this is not a particularly profitable business.

What is more noteworthy is that the skiing site has only a few months to operate in 1 years, and the rest of the time is not operational.

The Dahe ticketing network shows that the company's central Yue Song top ski resort is open from late November to March next year.

This means that the company has only 4 months to make money in 1 years.

In addition, reporters from the public comment network found that as of September 17, 2017, the company's mid Yue Song top ski resort only 16 netizens evaluation, it is clear that consumers are not concerned about this ski resort.

In this regard, the responsible person said that Gongyi ski resort in the first half of 2016 as trial operation, the official operation time is from December 2016 to March 2017, the snow season, so the current operating income is relatively low, net profit appears to be a loss, the concern is not high because it has not yet carried out large-scale publicity and promotion.

In addition to ski business, the company has established several sports acquisition fund.

In early 2015, the company initiated the establishment of the sports industry M & amp; a fund of the Pathfinder and raised 110 million yuan. After that, it completed investment in the key projects such as Lok world, Fittime, Ogilvy health and ice world.

At the end of 2016, the company took part in the establishment of the Xiangyang East certificate and the Pathfinder sports industry fund, and completed the 240 million yuan fundraising at the beginning of 2017.

However, these projects are still in the breeding stage, making it difficult to make profits in the short term, and there are great variables in whether these projects will stand out in the fierce competition in the future.

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