Why Do People Diversify? Why Are Profits Still Falling?

Recently, the company has released "

The announcement of the progress of foreign investment cooperation, the recent series of actions and the low share price, let the outside world guess whether its diversification is not satisfactory and release the signal of returning to the main industry.

As for the impact of the recovery of creditor's rights on the company, the bird said in the announcement that the recovered capital of the creditor's rights and interests is used to supplement the company's working capital, which is conducive to revitalize the stock assets, optimize the company's capital structure, reduce the company's financial expenses, and improve the overall operation efficiency of the company, which is in line with the long-term interests of the company.

After the recovery of this claim, the company's annual performance will have a certain impact. It is expected to increase the total annual profit of the company not less than 30 million yuan.

And in August 2nd,

According to the announcement, 37% of the shares of the 37% stake in Beijing Sports Management Co., Ltd., which are owned by the company, are pferred to the National Sports City Limited by Share Ltd of Jinjiang, the pfer amount is 135 million 222 thousand and 100 yuan and 8 million 114 thousand and 200 yuan respectively. 37% of the shares are pferred to the National Sports City Limited by Share Ltd.

After the completion of the pfer, the noble bird no longer holds the stake of Kangpai sports and Kangpai consulting.

In this regard, the bird said in the announcement that the sports industry layout has a certain cycle risk. Kang Pai Si company has not yet achieved stable returns. After the sale, it can optimize the structure of the noble bird assets, revitalize the stock assets, enhance the overall operational efficiency, and ensure the benign operation of the core brand sports equipment business, which is in line with the development strategy and long-term interests.

Over the past few years, the precious birds have made frequent moves in the sports ecosystem, earning a lot of assets through investment and mergers and acquisitions.

But now, its strategy seems to have changed.

It is worth noting that the birds have been trying to diversify after listing.

In 2014, the noble bird put forward the goal of "sports industrialization group based on the manufacture of sporting goods and products and coordinated development of various sports industries".

At the beginning of 2015, the precious bird bought 240 million shares for tiger sports and became the second largest shareholder. In July of the same year, it returned 20 million euros to the Spanish football brokerage company The Best Of You Sports, S.A.

In 2016, the pformation of birds is more frequent.

Not only has it bought the exclusive operation rights of the US basketball equipment brand AND1 in Greater China, but has held the line and name of the retail channel.

Library Network Technology Co., Ltd. has invested in Star Sports Technology and Internet sports games. It also announced the registered insurance company, and plans to establish Ankang insurance with 7 companies such as Xinjiang Guanghui Industrial Investment Co., Ltd. and Hong Kong Group.

In 2017, the precious birds wanted to lay out the field of sports fitness. They planned to buy a 100% stake in Welsh fitness company's Wellcome fitness market at a high price of 2 billion 700 million yuan, but it ended in failure in September of that year.

At this point, you have formed a diversified pattern in sporting goods, sports games, insurance, retail, electricity suppliers, competition lottery, paid reading and so on.

However, diversification has failed to prevent the decline of profits.

Since 2016, the birds have started to lose money.

In 2016, the total income of the precious birds business was 2 billion 279 million yuan, up 15.74% over the same period last year, but the net profit attributable to them declined 11.81% to 292 million 700 thousand yuan compared with that of the previous year. In 2017, the loss of the noble bird continued to expand, and its net profit fell 46.25% to 153 million 700 thousand yuan.

In addition to declining net profits, the birds have been caught up in the mass market.

Data show that in the first quarter of 2018, there were 78 new retail outlets, 133 retail outlets and 55 closed.

In 2017, 503 new retail outlets were opened, 879 were closed, and 376 were closed altogether, closing 1 retail terminals in less than a day.

In fact,

During the "cold winter" period, there is not a small number of companies that diversify in order to make achievements.

For example, the outdoor brand Pathfinder with the same layout of diversified sports industry has announced the burden of stripping off "sideline" and returned to its main business recently. One of the leading enterprises in China, Hui Jie shares, has signed a strategic cooperation agreement with the famous domestic footwear brands on Saturday, and has entered the footwear business.

After the listing of the popular bird, whether the pan sports capitalization operation has thrown the enterprise to the dangerous border.

Now, after the carnival of capital, can it still find the way to go home? Let's take a look at market changes and leave time to give answers.