Starting Shares To Spend 120 Million For Dealers To Ensure That The ABC Children'S Clothing To Promote Rapid Expansion Channels!

Start Limited by Share Ltd (hereinafter referred to as "start shares") issued a notice recently announced that the initial share Board agreed that under the premise of risk control, to provide the guarantee for the qualified dealer in the designated bank's credit line, the dealer's financing under the credit line is used to pay the purchase money to the company, and it can not change the use, the total amount of guarantee is not more than 120 million yuan, the specific guarantee contract is signed by the bank, and the guarantee period is one year.

It is understood that as of January 14th, the total amount of external guarantees for initial and wholly owned subsidiaries was not 620 million yuan (excluding the guarantee), accounting for 44.36% of the audited net assets at the end of 2017.

Starting shares indicate that the company's guarantee for dealers can promote the development of the company's channel business and achieve a win-win situation between the company and its distributors. Under the premise of effective control of risks, it helps dealers solve the problem of shortage of funds, expand sales scale, further establish long-term good cooperative relations with distributors, enhance the market competitiveness of the company, facilitate the withdrawal of accounts receivable, increase the liquidity of company assets, and realize the win-win situation between the company and the distributors.

Public information shows that the initial shares are mainly engaged in the design, research and development, production and sale of children's shoes, children's clothing and children's clothing accessories. The company has a well-known children's shoes and clothing brand "ABCKIDS". It is committed to providing children with 3-13 years of age with a wide range of styles and styles. The products are located in the middle end of the company, facing children aged 3~13, and the market mainly covers three or four lines of cities. The company's products cover two categories: Children's shoes and children's clothing.

1) the main categories of children's shoes are children's leather shoes, sports shoes and cloth shoes, and the price is close to that of the Red Dragonfly KIDS, which is lower than 360 KIDS and ANTAKids.

2) there are many children's clothes, including T-shirts, shirts, trousers, skirts, down garments, and so on. They are priced in the same way as balabbara in Semir's clothing, slightly lower than the children of MiniPeace, and the AdidasKids and NikeKids of the international sports brand.

At present, the main selling mode of the initial shares is buyout mode, that is, dealers should buy certain sales according to certain discount, do not need to pay additional fees to the company and trademark license fees.

Although the mode of distribution is adopted, the company still has unified management of terminal stores, including location selection, establishment, image, merchandise, sales, inventory and shopping guide.

On the one hand, the buyout mode can expand the local market on the basis of dealer capital and help the company expand the market share rapidly. On the other hand, the price of children's shoes and clothing is lower than that of the adult clothing, while the fashion is weaker, and the safety and comfort are stronger. Therefore, it is more difficult to clear the inventory in the past quarter. Therefore, the dealers have stronger willingness to accept the buyout distribution mode on the basis of the wholesale discount offered by the company.

Everbright Securities analysts believe that in 2018, the initial shares will continue to expand the distribution of stores and direct stores, and increase the proportion of shopping centers and shopping malls larger shopping area, promote the growth of store efficiency, revenue is expected to maintain a healthy growth.

As the company continues to expand the market share and optimize the channel structure in the future, the main industry of children's shoes and clothing is expected to maintain steady growth.

According to the earnings report, in the 2017 year, starting from direct investment and distribution channels (including private brand and OEM) in the year of 126 million, the revenue reached 126 million yuan and 1 billion 213 million yuan respectively, an increase of 63.68% and 4.87% compared with the same period last year, and a 3.16% increase in sales volume after deducting the distribution of OEM business.

The business channel of the direct share holding business has achieved revenue of 113 million yuan, an increase of 56.94%. Under the new line, there are 10 new stores and 15 outlets, and the revenue from the direct line has increased by 160.95% to 13 million 430 thousand yuan. The distribution of stores has been increased by 4.75% to 2381, with a deduction of OEM revenue and a decrease of 1.52% to 463 thousand and 800 yuan.

In the first half of 2018, the initial shares realized 614 million yuan of business revenue, an increase of 7.08% over the same period, of which the sales volume of children's shoes reached 419 million yuan, up 10.47% from the same period last year, and the net profit attributable to shareholders of listed companies was 109 million yuan, an increase of 7.89% over the same period last year.