HOSA'S Cash Flow Pressure On Domestic Sports Brands Faces Major Reshuffle

In August 13th, HOSA International The announcement said that because the management forged the report's earnings and profitability, it would defraud creditors and minority shareholders. The news caused HOSA international share price to drop by nearly 90%. Cash flow plagued not only a brand of HOSA, experts told reporters. Sports brand industry Faced with multiple challenges, if an enterprise does not have an advantage in R & D and brand, it is easy to be eliminated.

At the same time, HOSA has released two positive news: first, to cooperate with ALI sports in online and offline, and the other is to incorporate HOSA fitness system that was originally stripped of the listing system into listed companies. But this does not stimulate stock prices.

Reporters interviewed insiders, they revealed that the performance of HOSA international revealed a fatal problem: cash flow crisis. When the hypothecated stock is close to the closing line, the securities company often notifies the shareholders of the listed company to recover the margin or supplementary pledge, and only when the shareholder fails to perform, will the securities company choose to sell it forcibly. The securities company actually sold only 10 million 766 thousand shares, accounting for about 0.64% of the total share capital of the company. That is to say, at least for the first time, HOSA international can not get enough funds to recover the pledge deposit, which directly proves the fatal problem of HOSA cash flow.

Another sports brand is not very peaceful. Since August of this year, the precious birds have sold 143 million of the shares of Kangpai sports 37%, the 37% stake of Kangpai consulting and tiger sports, respectively, with the price of 143 million and 273 million. The reason for the sale is also due to the high pressure of cash flow.

From the 2017 annual report, Guirenniao Accounts receivable account for 92.6% of the main business revenue, and the company's accounts receivable is inefficient. The book value of inventory goods is 426 million yuan, accounting for 86.60% of the inventory. The high inventory cost leads to increased cost. The slow turnover of internal capital and the lack of funds are a great pressure on the company's capital chain.

When cash flow is "internal worries", the continuous investment activities further exacerbate the financial pressure of enterprises. In 2017, investment in fixed assets such as noble birds reached 2 billion 56 million yuan, and the investment income of joint ventures and joint ventures amounted to -1112 million yuan. The asset liability ratio of the precious birds also increased from 60.6% in 2016 to 65.4%.

Up to the end of the first quarter of 2018, the amount of cash paid by expensive birds was only 891 million yuan, and the asset liability ratio was as high as 71.2%. In August 3rd, the rating of the company was lowered to B2, and the risk of refinancing increased. The funds were not enough to cover 2 billion 200 million yuan of short-term and short-term bills that would expire in the next 12 months.

The China Commercial Daily reporter interviewed Professor Yang Deyong, Dean of the school of economics, Beijing Technology and Business University. He believed that if the net decrease in cash flow was mainly caused by fixed assets, intangible assets or other long-term assets, or mainly caused by foreign investment, it would be generally done by upgrading equipment or expanding production capacity or investing in developing the market. This net decrease in cash flow does not mean that the business capacity of the enterprise is not good enough, or that the enterprise may have greater cash inflow in the future. But under the condition of market economy, the cash flow of enterprises determines to a large extent the ability of existence and development of enterprises. Even if the enterprise is profitable, if the cash scheduling fails, it will seriously affect the normal production and operation of enterprises. The weakening of solvency will directly affect the credibility of enterprises and ultimately affect the survival of enterprises.

Like most sports brands, the great bird has said that the market of sports shoes and clothing industry is low and industry competition is intensified. From the point of view of its own business, the main business revenue comes from its own brand products, and the distributor mode adopted relies heavily on large customers.

In order to cope with the decline of the main revenue, these sports brands began to operate capital. For example, the "noble birds" frequently extend their acquisitions to achieve the strategic goal of diversified spanformation. According to its 2017 annual report, the merger of sports brand Jay and shoes store led to a rise in costs, financial costs and management costs, and some sports industry investment layout has not yet achieved stable returns, resulting in a net profit attributable to shareholders of listed companies and net profit deduction. In 2017 alone, the company closed 879 retail outlets and closed 376, which was equivalent to closing a store in less than a day.

Since 2016, PEAK has been delisted, Hyde has gone bankrupt and Delhi has closed down. "The plight of these companies in the capital market is just a microcosm of the sports brand." Guo Hesheng, Secretary General of the China Light Industry Association Business Management Association, told reporters that the current sports brand is experiencing a sharp reshuffle in the industry, the industry concentration is higher and higher, and it also faces multiple challenges such as e-commerce channels, overseas brands, technology research and development, brand building and so on. With the continuous segmentation of sporting goods demand, if these enterprises do not have an advantage in R & D and brand, they will easily be eliminated.

In addition, he believes that sports brands can be considered based on policies and market Adjusting the layout and increasing investment in children, women and other markets may be a new opportunity for spanformation. But if we want to grow for a long time, the brand value of the main business and the coupling effect of expansion and integration will be measured. industry The key elements of gaining a foothold are both opportunities and challenges.