La Natsu Bell'S Extensive Expansion Mode Does Not Work.

(603157.SH) (06116.HK) the first pcript in the A share market is not satisfactory.

According to the world clothing and shoe net, recently, La Natsu Bell released the 2017 annual report. During the reporting period, the company achieved operating income of 8 billion 999 million yuan, an increase of 5.24% over the same period, with a net profit of 499 million, down 6.29% from the same period last year.

This has been a continuous increase in profits for two consecutive years.

After many failures in A, it was finally listed on the Shanghai Stock Exchange in September 2017.

The brand La Natsu Bell mentioned in the prospectus that the company intends to raise 320 million yuan of IPO funds into the expansion project of the retail network.

Based on the existing retail network, the company and its controlling subsidiaries will use IPO to raise funds and open 2094 new outlets in three years, and 906 new outlets will be opened.

However, reporters found that in 2014, La Natsu Bell had a total of 6887 retail outlets. By the end of 2017, the number of business counters had reached 9448, representing an increase of 37.1% over 2014.

In 2014, the business revenue (including monopoly and counters) of the La Xia bell line was 6 billion 170 million yuan, and the operating income in 2017 was 7 billion 633 million, an increase of 23.7% over 2014.

Offline revenue growth is far slower than the expansion of the shop.

At the same time, the problem of inconsistent production and marketing speed and high inventory prices also followed.

In response, the reporter called La Natsu Bell, deputy director of the office said that the company is busy with a quarterly disclosure, it is not yet able to reply in time.

At the same time, reporters should send an interview letter to the other side, but as of press release, no relevant reply has yet been received.

First year performance changes

According to La Natsu Bell's 2017 annual report, the company achieved operating income of 8 billion 999 million yuan during the reporting period, an increase of 5.24% over the same period, with a net profit of 499 million, down 6.29% from the same period last year, and deducting non net profit 380 million, down 19.53% over the same period last year.

Among them, the government subsidy of the current profit and loss account is 129 million yuan during the reporting period.

In addition, the gross margin of sales in 2017 dropped from 64.08% last year to 62.54%.

In fact, this has been La Natsu Bell's continuous increase in profits for two consecutive years.

The company's past financial results show that from 2014 to 2016, La Natsu Bell achieved operating income of 6 billion 209 million, 7 billion 439 million and 8 billion 551 million, an increase of 23.31%, 19.81% and 14.95% compared to the same period, corresponding net profit of 503 million, 615 million, 532 million, an increase of 23.61%, 22.21%, and -13.54% respectively; the corresponding net non profits were 22.21%, 22.21% and 23.61%, respectively, increasing by year, -16.85%, and respectively.

From 2014 to 2017, the net sales rate of the company was 8.23%, 8.85%, 6.69% and 5.97% respectively.

For the reasons for the decline in performance, La Natsu Bell said in the annual report that the pformation of the department stores mainly resulted in a decline in the company's special revenue and the increase in the annual loss of the company's brand during its incubation period.

The speed of production and marketing is inconsistent.

By the end of 2017, La Natsu Bell's total assets amounted to 7 billion 872 million yuan, of which accounts receivable was 1 billion 53 million, inventories were 2 billion 345 million, inventories accounted for nearly 30% of total assets, and in 2015 and 2016, the company's inventory amounted to about 1 billion 700 million yuan.

In 2017, the average turnover time was 216.7 days (2016: 203.4 days).

La Natsu Bell explained that in the autumn and winter of 2017, product inventories increased over the same quarter last year, of which the Spring Festival in 2018 was one month late than in 2017, resulting in the increase of product distribution in 2017 and the improvement of environmental standards.

Reporters also noted that high inventory prices have been a major problem for La Natsu Bell.

The company prospectus disclosed that from 2014 to the first half of 2017, the book value of the company's stock was 1 billion 327 million 440 thousand yuan, 1 billion 756 million 260 thousand yuan, 1 billion 713 million 580 thousand yuan and 1 billion 498 million 610 thousand yuan, respectively, accounting for 23.16%, 29.93%, 27.18% and 24.72% of the total assets of the company during the current period. The larger inventory increased the pressure of the company's cash flow, and the extension of its store age structure would also increase the provision for the fall in price and adversely affect the company's business performance.

From 2014 to the first half of 2017, the company's inventory depreciation allowance was 243 million 300 thousand yuan, 289 million 40 thousand yuan, 269 million 470 thousand yuan and 226 million 630 thousand yuan respectively.

La Natsu Bell's business model is mainly outsourcing, and the main products are purchased from third parties.

Look back at the company's production and sales situation. In 2017, La Natsu Bell was dressed and downloaded.

The production of accessories increased by 16.73%, 18.19%, 13.89% and -9.08% over the previous year. Sales increased by 6.47%, 7.88%, -5.14% and -17.47% over the previous year. The stock grew by 24.79%, 17.29%, 25.05% and 81.46% over the previous year.

This also means that the sales volume of the company can not keep up with the speed of purchase.

{page_break}

Offline revenue growth is far less than the expansion speed of the shop.

The reason for La Natsu Bell's high inventory is also related to the rapid expansion of the store.

La Natsu Bell prospectus mentioned that the company intends to raise funds IPO 320 million yuan into the expansion of the retail network construction projects.

Based on the existing retail network, the company and its controlling subsidiaries will use IPO to raise funds and open 2094 new outlets in three years, and 906 new outlets will be opened.

However, from the perspective of channel, La Natsu Bell's online business income increased by 415 million yuan in 2017, an increase of 44.86% compared to the same period last year, while the monopoly revenue increased by 512 million yuan, an increase of 15.92% compared with the same period last year, and the income of the counter under the line decreased by 489 million yuan, down 11.13% compared to the same period last year.

Among them, the income of special counters was reduced by 11.13% due to the adjustment of channel pformation and the year-on-year decline of old stores, which accounted for 51.3% of the company's revenue from 43.3%.

Reporters also noted that in 2014, La Natsu Bell had a total of 6887 retail outlets. By the end of 2017, the number of business counters had reached 9448, with a net increase of 541 over the whole year, representing an increase of 37.1% over 2014.

In 2014, the business revenue (including monopoly and counters) of the La Xia bell line was 6 billion 170 million yuan, and the operating income in 2017 was 7 billion 633 million, an increase of 23.7% over 2014.

Offline revenue growth is far slower than the expansion of the shop.

The annual report also shows that the net cash flow generated by the company's business activities in 2017 is 557 million yuan, resulting in a decrease in cash inflows due to operating activities, mainly due to the increase in net opening stores in 2017, resulting in an increase in operating expenses related to rental deposits, purchases of inventory expenses and so on.

In 2017, the sales cost was 4 billion 355 million yuan, accounting for 48.4% of the revenue.

From 2014 to 2016, the selling expenses of the company were 2 billion 806 million, 3 billion 393 million and 4 billion 45 million, respectively, accounting for 45.2%, 45.6% and 47.3% of the current operating income respectively.

La Natsu Bell said that compared with the previous year, the wage and welfare expenses, long-term amortization expenses, amortization expenses, electricity supplier fees and rental fees increased and the proportion of income increased.

It is worth mentioning that as of the end of 2017, La Natsu Bell short-term borrowing 1 billion 6 million, an increase of 235.33% over the same period last year.

The total debt reached 3 billion 802 million, up 36% from the end of 2016.

The asset liability ratio rose from 44.31% at the end of 2016 to 48.31%.

More interesting reports, please pay attention to the world clothing shoes and hats net.