Hai Lan'S Shareholders' Meeting Was Controversial. Small Shareholders Were Ridiculed By Zhou Jianping.

Company profile

Recently, Hai Lan home issued its annual report 2018. The company achieved a total revenue of 19 billion 90 million yuan, an increase of 4.89% over the same period last year. The net profit attributable to shareholders of listed companies was 3 billion 455 million yuan, an increase of 3.78% over the same period last year, but the net profit was 3 billion 268 million yuan, down 0.63% from the same period last year.

As a "man's closet", which is known to everyone, nearly 20 billion of its revenue volume, more than 6000 stores, has made it difficult for other peers to make a match. But in recent years, this man's clothing industry is gradually showing signs of decline.

In 2014, Hai Lan's home allowed the large shareholder of Hai Lan group to earn more than 800% of its revenue in the same year, and the total amount exceeded 12 billion yuan.

But since 2015, Hai Lan's home revenue and net profit growth has not yet reached two figures, and 2018 is the first time that net profit has declined since asset injection.

Confirmation of the meeting

In April 16th, the research of muddy water was sent to the house of Hai Lan for registration.

Although the shareholders' identity has been verified through the roster of shareholders, Hai Lan's home office has suggested that it is necessary to produce a record of stock account operations because there is no shareholder account card online.

After one operation, the conference registration was finally completed.

Information on the scene

In April 19th, muddy water research went to Jiangyin.

Hai Lan's home is located in Xinqiao Town, Jiangyin. Starting from Wuxi, it can only arrive by intercity bus or bus. There is only one bus in Xinqiao Town.

The figure of Hai Lan, the whole new town, is almost everywhere. The industrial chain around Hai Lan's home almost constitutes all the commercial and living scenes of the town.

Attendance

According to the observation of the spot card, the annual shareholders' meeting was attended by a total of 6 Dong Jiangao, including Chairman Zhou Jianping and Dong mi Xu Qinghua. The former successor Zhou Lichen and the other executives were all absent from the group, making muddy water research quite surprised.

Such a well-known listed company originally thought that the annual shareholders' meeting would attract many investors and agencies to participate. However, muddy water research unexpectedly was that only 5 small shareholders were present, compared with the heat of other commercial enterprises.

Motion analysis

The shareholders' meeting contained 7 bills, most of which were annual procedural documents and were voted through.

Field communication

Before the meeting, staff asked shareholders to pre register their questions.

Zhou Jianping said hoarse voice, because the cold is not well, so please read the relevant motion.

After entering the question link, Xu Qinghua first answered several questions.

1, the number of Direct stores increased.

In 2018, there were as many as 145 new stores in Hai Lan's home, which increased by more than 4 times compared with 31 at the end of 2017.

Xu Qinghua: previously, the shop was mainly paved with street shops. With the booming development of shopping centers, the company strengthened the layout of shopping centers in the shopping center to fit consumers' "one-stop shopping" consumption habits.

However, most shopping centers do not allow self-employed individuals to enter, so the company can only be stationed in direct shop mode.

2, single store income decline

Annual report shows that during the reporting period, Hai Lan home, AI Ju rabbit, and other brand stores continued to open for more than 12 months, and all of the outlets' income had declined to varying degrees.

Among them, the number of direct shops in Hai Lan home rose from 7 to 43, while the revenue of single store was only 7 million 517 thousand yuan, down by more than 65% compared with the same period last year.

Xu Qinghua: the newly opened stores are mostly standard shops rather than image stores. They are generally small in scale, so they have lowered their revenue levels.

3, the market value of the company is larger in the apparel industry. How to maintain it?

Xu Qinghua: we believe that although the overall market value is large, the company's share price is underestimated.

(hearing this, Zhou Jianping seemed to be unable to restrain himself, regardless of his illness.

Zhou Jianping: the company only considers business and does not consider stock price.

If we are worried about market value management in order to cater to the market, the company will lack the spirit of "craftsmen". We are only responsible for doing things well. As for stock prices, this is not something we should worry about.

5, reasons for share repurchase

Xu Qinghua: since the listing of Hai Lan's home market, the cash dividend has exceeded 8 billion yuan, which is a huge expenditure.

Last year, the Securities Regulatory Commission began to encourage listed companies to buy shares. The repurchase is partly because we have confidence in the company, and on the other hand, we hope to repay shareholders in another way.

The company intends to implement a continuous buyback plan for five consecutive years.

7, about new brand cultivation

In recent years, Hai Lan's home has been developing new brands through acquisitions and independent development. By the end of 2018, Hai Lan's family had already had 8 kinds of clothing brands.

The company's devotion to the new brand and its devotion to advertising are also "very good". Unfortunately, the rest of the brands have not been effective except for the women's clothing brand love rabbit and the professional wear brand Saint keno.

Zhou Jianping: the cultivation of new brands is like raising children, raising a few at the same time. Some grow up and become useful. Some of them will not be promising. The future is unknown.

But in three or four years' time, the company will not be powerless because of the lack of new brand, so the cultivation of new brand must be done.

8, return situation

In addition to the new brand, Hai Lan's home mainly adopts the mode of consignment, that is, the unsalable products can be returned to the suppliers.

On this basis, the "light assets" mode is an important symbol of the pformation of Hai Lan.

The 2018 annual report shows that the company can return stock up to 4 billion 920 million yuan at the end of the reporting period, but the annual report has not disclosed the amount of return and the actual production and marketing rate during the reporting period.

In 2018, Hai Lan's family had been questioned by the Shanghai stock exchange because of the unknown returns in the 2017 annual report. At that time, the amount of refund was announced to be as high as 3 billion yuan.

Xu Qinghua did not ask the company to refuse to answer the reason why the company disclosed the data in its annual report.

9. About inventory

By the end of 2018, Hai Lan's home stock increased by 11.55% over the same period, reaching an astonishing 9 billion 470 million yuan. Although half of them could be returned, the increase in inventory was much higher than that in revenue and net profit growth.

This question made Zhou Jianping very unhappy and responded in person.

Zhou Jianping: there are always people asking about the inventory problem. I have to answer the question in my ears. I will ask you to go out and talk with others today.

Hai Lan's business model is no problem, our revenue is still growing. Those who question our inventory problem, let him find a company whose revenue is higher than ours. If the revenue does not exceed that of Hai Lan, it will not qualify us to question us.

Our system can achieve nationwide store monitoring. Our inventory contains every single store inventory. Some clothing companies send goods to dealers without stock. How do they compare with us?

No one is allowed to question Harbin's inventory problem. Our flat can even surpass Zara and UNIQLO.

Hai Lan's model is hard for others to learn. We are very mature. Why can't we learn it?

That's a matter of ability.

10, how will the business model be improved in 2019?

Zhou Jianping: the specific idea is business secrets. If I tell you now, tell your competitors what to do.

The questioner indicated that he had been concerned about Hai Lan's home for a year and had some knowledge of Hai Lan's model. He just wanted to know the next development direction.

The result was Zhou Jianping's relentless taunting.

Zhou Jianping: you can study it in a year.

If you are strong enough, you are the chairman of the board.

11, insufficient strength of designers

The issue of business mode and designer's strength is raised by another small shareholder on the market.

It is normal to put such questions in the other annual meetings as shareholders of one of the company's leading characters, but any doubts and discussions placed here at Zhou Jianping seem to be the trigger for his anger.

Zhou Jianping: what high-end designers do you mean by saying that they are high-end designers, and which big companies are they, how much of the products they sell and how many sales are there?

You can't tell me what the high-end designer is.

You didn't do enough homework to ask questions. I advise you not to waste your time and finish your lunch earlier. If you have any questions, you can talk to our secretaries alone.

I tell you, the highest level designers are all at Hai Lan's home. You don't feel good about it. Don't buy it. The more you buy, the more people you like.

No one can exceed Hai Lan's home. No one exceeds Hai Lan's home, which means that we are the best now.

During the period, the minority shareholders tried to explain their intentions and personal understanding. Zhou Jianping was rudely interrupted. During the exchange, he was very impassioned, and he was no longer tired of the meeting.

From the scene, we can see that Hai Lan's home has not received much attention from the capital market and investors.

Under such circumstances, investors who have come to attend the annual shareholders' meeting have had "real concern" and "true feelings" for the company.

In contrast, the management attitude of Hai Lan's family is extremely short of patience and modesty.

In April 19th, muddy water research launched a thorough discussion on the news of the shareholders' meeting at Hai Lan House. It was widely considered that such behaviour was quite inappropriate.

It is true that few investors have strong opinions or suggestions on company management, but shareholders, as owners of 1/n, are actually "relations between bosses and employed employees", and management reports on business situations and answers questions.

The honest and calm response of executives is also an important way to establish a company's good image and investor confidence.

Under such circumstances, perfunctory reply or return is not only a lack of "domineering", but rather a lack of confidence and a lack of level.

All say that the mind determines the upper limit of a person's development.