The Sale Of Products To Related Companies Is Constantly Increasing Due To Inventory Turnover.

In June 28th, the first Limited by Share Ltd of China's Golf costumes was released by the Limited by Share Ltd (hereinafter referred to as "Bi"), and the company announced that it would sell products to the Hongdu Xindu Trade Co., Ltd. (hereinafter referred to as "Xindu trade").

It is reported that Xindu trade is one of the company's actual controllers, one of the relatives controlled by Feng Lingling. According to the relevant provisions of the Shenzhen Stock Exchange listing share, transactions constitute related transactions. The business scope of Xindu trade is office supplies, labor insurance supplies, general merchandise, clothing, household appliances, and mineral products sales. As of December 31, 2018, the total assets of Xindu trade were 14 million 520 thousand yuan, net assets of -32 million, operating income of 5 million 50 thousand yuan in 2018 and net profit loss of 1 million yuan.

The announcement shows that the daily transactions of BL and the new capital are not more than 6 million yuan, and the two sides agreed to settle the payment by the discount and settlement method specified by BL. The additional agreement signed by the company is signed with the Xindu trade, involving products including men's, women's clothing and accessories. The cooperation period between the two sides is July 1, 2019 -2020 June 30th, and the agreement can be effective only after the signature and seal of both parties.

It is noteworthy that, according to the recent earnings report of bill elfin, we can see that the number of days of inventory turnover is rising. Data show that in the first quarter of 2019, the stock turnover days of the company increased to 334.41 days, up nearly 70 days from the same period last year, and the 264.45 days in the first quarter of 2018. In fiscal year 2018, the stock turnover period was 322.58 days.

Insiders pointed out that the increase in stock turnover days showed that there was a certain amount of inventory pressure. Clothing products are seasonal and fashionable products, and the backlog of overdue products will not increase in value in the company. They will only decrease their tag price as time goes on, and at last they can only be processed at a discount price, which to a certain extent also damage the profit margin of the company.