"Outdoor First" Pathfinder Financing Development Business, 78 Million 840 Thousand To Sell The Imperial Capital Thousand Square Big Property

Pathfinder holding group Limited by Share Ltd (hereinafter referred to as "Pathfinder") announced in June 5th that based on the planning of company headquarters personnel centralized office and to effectively revitalize the company's stock assets and obtain more capital to support business development, the company intends to sell its own property located on the 21 floor of the International A block 6, Zhichun Road, Haidian District, Beijing.

According to the preliminary communication and consultation, the Pathfinder intends to sign the "Beijing stock housing sales contract" with the China Hospital Association (hereinafter referred to as "Party B" or "buyer") to sell the company's own commercial real estate, which is located at the 21 floor of the international A block 6 (hereinafter referred to as "Jin Qiu 21 tier real estate") in Zhichun Road, Beijing, Haidian District.

The announcement shows that the Pathfinder has been used as an office since the purchase of 21 floors of real estate in November 2008. The original value of the property is 32 million 818 thousand and 200 yuan, and the net book value as of December 2018 is 25 million 321 thousand and 400 yuan.

Pathfinder will sell these properties through real estate intermediaries. On the basis of not less than the valuation value of each property, the market will be considered comprehensively, and the final paction price of each set of property will be determined through consultation with the paction side. After the two sides have reached a consensus, the housing paction price is 78 million 849 thousand and 525 yuan for the people.

Pathfinder said that the headquarters office of the outdoor main business of the company is located in the A block of Jin Qiu International Building, Haidian District, Beijing, including the 21 and 24 storeys, and the 28 Park of Hongfu science and Technology Park, Changping District, Beijing (hereinafter referred to as "Hongfu Park"). With the meticulous management of the company and the gradual increase of the speed of operation and supply chain reaction, the separate office of the relevant departments of the headquarters has affected the communication and cooperation efficiency of the employees to a certain extent.

In view of the fact that the company has built a more outdoor experience and modern office environment in Hongfu Park, the main employees will gradually move to the centralized office. The office area of the A block of Jin Qiu International Building will be largely idle.

Accordingly, the company plans to sell its own property located on the 21 floor of the international A block 6, Zhichun Road, Haidian District, Beijing, based on the above plan of the company's headquarters personnel centralized office and the effective consideration of the company's stock assets and more funds to support the development of the business.

Public information shows that the Pathfinder is the leader of local outdoor products, and the market share is the leading industry.

The company was founded in 1999 by Wang Jing and Sheng Fa Qiang, and was listed in 2009.

The company is China's largest outdoor product company, ranking first in market sales and market share for many years.

Its main business includes outdoor products and tourist sectors, of which outdoor products are mainly outdoor clothing and outdoor equipment; travel business is mainly carried out by its subsidiaries, and provides travel related services such as tourism products and air tickets booking.

From the division of business segments,

1) the outdoor products board, the company has a well-known brand "Pathfinder TOREAD" and "DiscoveryExpedition", production of assault clothing, mountaineering shoes, sunscreen clothes and other sports apparel and outdoor equipment.

The Pathfinder TOREAD is mainly oriented to professional outdoor sports groups, and has gradually entered the field of outdoor recreation and children's wear. DiscoveryExpedition is based on the discovery channel and is oriented to high-end outdoor leisure consumption groups.

2) as for the travel sector, the company's travel business is mainly run by its subsidiaries. It is a O2O integrated service provider located on the tour. It integrates the upstream and downstream retail end resources to carry out business based on the ETS system platform.

The travel products offered include various types of "individual customer service", "team customization", "air tickets, hotels, visas, insurance and so on."

In 2018, the Pathfinder achieved a total revenue of 1 billion 990 million yuan, down 34.3% from the same period last year. The net profit attributable to the owners of the parent company was -1.8 billion, which was -8485.4 million yuan last year.

According to the products, outdoor apparel, outdoor footwear, outdoor equipment and travel services achieved 1 billion 41 million yuan, 220 million yuan, 60 million yuan and 653 million yuan respectively, representing a decrease of 1.83%, 16.72%, 28.98% and 59.25% respectively.

The total operating income was 1 billion 992 million yuan, a decrease of 34.34% compared with the same period last year. The main reason is that the company optimizes the structure of the travel service business based on the future development strategy, and actively adjusts the business scale to reduce the international airline tickets with low profit margins, resulting in a sharp decrease in travel service revenue.

In the background of the slow development of domestic outdoor products industry and the slow growth of the industry, the development of the main business of outdoor products is basically stable.

Since the end of 2017, the company has adjusted its management personnel, the company's strategic focus has been returned to the main business, and gradually stripped and withdrawn from the business that is not related to the outdoor main business, while continuing to integrate projects that have deep synergy with the outdoor home page, so as to enhance the outdoor ecological synergy effect.

It is predicted that with the development of ice and snow sports in the Winter Olympic Games, the outdoor sports will be further improved, and the scale of outdoor products will continue to improve.

2) by region, domestic sales, export sales, online and others realized revenues of 1 billion 730 million yuan, 994 thousand and 300 yuan, 239 million yuan and 21 million yuan respectively, representing a year-on-year change of -36.87%/-83.30%/-10.34%/6.89%.

Pathfinder strengthens the integration and operation of offline online shops, adjusts the channel structure of Pathfinder stores and DiscoveryExpedition brand stores, and closes inefficient shops.

We should expand the channel types such as ShoppingMall and outlets.

Up to the end of the reporting period, the total number of shops under TOREAD, DiscoveryExpedition and children's wear TOREADKIDS line was 1210 /171 home /32 families, respectively, which changed the -85 family /20 family /-47 home year by year, and the children's clothing store's sharp reduction was due to the company's right to reclaim the children's clothing business at the end of 2017. During the reporting period, the original system of children's wear shop channels were upgraded and upgraded.

3) according to the brand, Pathfinder and DiscoveryExpedition achieved revenues of 1 billion 177 million yuan /1.41 billion respectively, representing a decrease of 3.68%/24.19% compared with the same period last year.

Under the background of economic downturn, overall industry slowdown and fierce market competition, the company continued to strengthen investment in R & D of products, with annual R & D cost of 48 million 780 thousand yuan.

GF Securities analyst Mi Hanjie said earlier that the main business income of the Pathfinder in 2018 was basically stable, and the net profit loss attributable to the parent company was mainly due to the stripping of the non main industry. Apart from improving fundamentals, the domestic outdoor industry is still in its initial stage, and is expected to usher in a new round of development opportunities. The company will benefit from the industry's recovery and concentration.

As the company is gradually stripping off its main business, the net profit margin will be distorted in the short run, and the medium and long term is expected to return to a reasonable level.