Where Did Sanfo Spend Its Outdoor Money?

According to the world clothing shoes and hats net,

Borrowing large sums of money to buy high-end properties, and investing 22 million in a chain fitness club, but even if the fitness business is labeled with private education and technology, whether it can support 550 million valuation is worrying.

Soon after the listing of enterprises, the performance changed dramatically, in the A shares.

It's still hard to put an end to it.

The Sanfo outdoors, which has only been listed for more than two years, is a typical example: the first full fiscal year (2016) after the listing of the company, the revenue growth rate is only a single digit, and in the first half of 2017, net profit is down 90% directly.

What is the situation of Sanfo outdoor? How has it been doing since its listing? Recently, the reporter contacted the relevant person in charge of the company, trying to find the answer for investors, and got a simple answer.

Cost increase cash flow tension

Sanfo outdoor was established in June 2001 and officially landed on A shares in December 9, 2015.

Its main business is chain outdoor retail, multi brand and multi category outdoor sporting goods, organizing outdoor activities and outdoor events, designing and constructing comprehensive outdoor camps, and launching outdoor experience education for young people.

According to the company's earnings report, revenues from the first half of 2015 to the first half of 2017 were 320 million, 350 million and 164 million, up 12%, 7% and 16%, respectively.

Net profit was 31 million, 35 million 370 thousand and 460 thousand respectively, 11% and 14% higher than the previous two years, but it dropped by 93% in 2017.

Why did Sanfo outdoor make such a big change in net profit in a short time? According to the earnings data, the revenue increased slightly, indicating that the cost of the company increased significantly in a short period of six months.

Sanfo outdoor explained briefly in its annual report: "because of the increased investment in the management fees and R & D expenses of the company, and the continuing downturn in the main business sector, it has had a certain impact on the performance."

So where did Sanfo spend its outdoor money?

There are some signs in the earnings report. In the first half of 2017, the outdoor business cost of Sanfo was 91 million 680 thousand, an increase of 20% over the same period last year. The management cost was 25 million 700 thousand, an increase of 73% over the same period last year, and the R & D expenses increased 6 million 220 thousand times, up 112 times compared with the same period last year.

What are the management fees and R & D expenses? What is the huge growth of management fees and R & D expenses? Sanfo outdoors listed in the annual report: management fees include Event Hosting and outdoor experience projects. R & D expenses include R & D design for new products.

But why did Sanfo suddenly make efforts to increase investment in 2017, but Sanfo did not respond directly to it. Instead, it explained to reporters that "outdoor camp construction and youth outdoor experience training education are still in the initial stage of investment. The expansion and R & D investment of Sanfo's own brand R & D team has increased, and the initial planning input of Sanfo's outdoor small station franchising system, as well as the corresponding growth of store rentals, labor costs and financial costs, has resulted in a substantial decrease in net profit attributable to shareholders of listed companies."

Apart from the increase in management and R & D expenses, Sanfo outdoor does not seem to have greater control over its main business operation.

The payment for suppliers in the first half of 2017 increased by 42% compared with the same period last year, and the bargaining power was worrying.

Increased cost and payment in advance made Sanfo's cash flow nervous.

In the first half of 2017, the net cash flow generated by its business activities was negative 33 million 610 thousand.

Although the first half of Sanfo's outdoor report failed to satisfy investors, its forecast for its three quarter performance was quite optimistic.

Sanfo outdoor expects that the net profit attributable to shareholders of Listed Companies in 2017 1-9 is 9 million 70 thousand yuan.

But how to reverse the situation in just three months, the company has not produced more convincing explanations.

Buying luxury and high-end gym

At the same time, the industry and investors are surprised that Sanfo outdoor under such circumstances, also denounced huge sums of money to buy property, this practice many people feel puzzled.

In May 11th this year, Sanfo announced that it had signed a contract with Beijing merchants Real Estate Development Co., Ltd. (hereinafter referred to as Jia Ming real estate), the contract for sale of commercial housing in Beijing. The contract has stipulated that Party B shall purchase from Party A 116 million yuan, 23, -101, 101, 201 and 301, which is located at No. 3 hospital of Chen Jiaying West Road, Changping District, Beijing, with an average of about 20000000 yuan.

The company said that the fund needed to buy the office building is to be applied for loans of RMB 50 million yuan with its own funds and the Bank of Beijing branch of Limited by Share Ltd bank, and the above property is taken as a mortgage guarantee, and the loan to the controlling shareholder and the actual controller is 26 million yuan.

If it is not issued successfully, a refinancing fund will be used to replace the company's own investment funds and loans and loan funds.

Sanfo's outdoor non-public offering scheme has been examined and approved by the company at its fourth annual general meeting in 2016 years. It intends to raise funds to invest in Sanfo's headquarters office and R & D center construction project with a non-public offering, including the purchase of an office building in Beijing.

Sanfo's outdoor public offerings are not for specific operations, but for the property market.

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This area of Sanfo's outdoor purchase is also known as a luxury residential area in Beijing.

Building 23 is the only office building outside the community. There are 4 floors in all, 4 floors for community offices, and the other three floors for sale.

This practice sparked investors' suspicion for a while: "capital shortage, with about thirty million of its own capital and large amount of loans to buy."

Where does the money go from? Where can the money come from? How much can the profit investors buy? "

Speaking of buying and buying, actually Sanfo outdoors not only bought a house, but also invested 22 million in a high-end fitness club, Goodluck, Shenzhen.

In September 28th, Sanfo's outdoor announcement said: "its industry fund, Sanfo Jinding investment, intends to invest in Shenzhen by means of cash replenishment.

Cci Capital Ltd (hereinafter referred to as "goodwill"), the investment amount is RMB 22 million yuan. After the investment is completed, Sanfo Jinding investment will hold a 4% stake in goodluck.

At this time, the valuation of goodluck has reached 550 million yuan.

Speaking of goodluck, in the past few months, the company has attracted some attention because it has just completed the B round of 100 million yuan financing.

The annual price of the fitness club is about 3000 yuan, more than 70 of the company's Direct stores, and 1500 of its employees, of whom 1300 are coaches.

Gutphli said that compared with the industry's private teaching content of reducing fat and increasing muscle, there are some special exercises and rehabilitation training.

According to goodluck, the company has already made a profit overall, but the reporter found that the company did not make a profit by checking the sky, so the data could not be further confirmed.

According to industry sources, "for a chain gymnasium enterprise with a certain scale, chain network effect and brand effect, if stable growth is maintained, the reasonable valuation of the capital market will eventually be between 30 and 40 times PE, which is only a reference for the chain health housing company when it is done by the buyer and the seller consultant."

Goodwill's valuation of 550 million yuan is matched with its profits. Sanfo outdoor did not give more explanation.

According to the agreement, Sanfo Jinding invested 22 million yuan to Gould fili to subscribe for 1 million 938 thousand and 200 yuan of its newly registered capital of 7 million 520 thousand and 400 yuan. After the completion of the investment, the registered capital of Gould fili increased to 48 million 456 thousand and 100 yuan, and the investment amount of Sanfo Jinding was higher than that of Gould fili's new registered capital, that is, 20 million 61 thousand and 800 yuan, all of which was the capital reserve of goodluck.

But there are still many uncertainties about whether Sanfo outdoor can find more profit growth points by investing in goodwill.

As for how much investment these projects can bring to the company, the reporter failed to get more detailed explanation from the company.

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