Man Card Dragon Ball Treasure Intends To Raise Funds 358 Million Sprint IPO

Recently, the man Caron jewelry Limited by Share Ltd (hereinafter referred to as "man Caron") once again disclosed the initial public offering and the prospectus on the GEM Listing (hereinafter referred to as the "prospectus"). It intends to issue new shares no more than 51 million shares, and the total share capital after issuance is not more than 204 million shares. The sponsor (principal underwriter) is Zhejiang Merchants Securities.

Mankaron jewelry is a jewelry retail chain enterprise integrating jewelry, sales and brand management. Its main business is jewelry retail chain sales. At present, there are jewelry brands like "MCLON man Caron" and "today's legend". The prospectus shows that the company actually controls Sun Songhe and controls 76.93% of the total stake. After this issue, Sun Songhe will remain in the position of actual controller.

According to the prospectus, Mankaron raised 358 million yuan to raise funds for the marketing network expansion project, the design exhibition center upgrading and construction projects, and the intelligent retail information upgrading project, which invested 276 million yuan, 61 million 543 thousand and 600 yuan, and 20 million 460 thousand yuan respectively.

Revenue improvement

After the decline in revenue from 2013 to 2016, the revenue of Mann Caron has improved over the past two years. According to the latest prospectus, from 2016 to 2018, the operating income of man Caron was 750 million yuan, 837 million yuan and 920 million yuan respectively, representing an increase of -16.52%, 11.69% and 9.82% over the previous year.

In the prospectus, the growth of the company's revenue in recent years has been attributed to the laying of sales channels under the line, the construction of online sales channels, the expansion of the external market in Zhejiang, and the fall in the value-added tax rate. This is the three reason for the increase in revenue.

Prospectus shows that from 2016 to the end of 2018, the number of Direct stores increased from 18 to 27, the number of counters increased from 42 to 59, and the number of franchisees rose from 34 to 67. Online channels, at present, man Caron mainly through Tmall and vip.com online sales, from 2016 to 2018, the company's electricity revenue increased from 16 million 920 thousand and 400 yuan to 49 million 558 thousand and 800 yuan, the proportion of the main business income increased from 2.27% to 5.40%.

Sales area, during the reporting period, Mankaron has entered Jiangsu, Anhui and Hubei and other Zhejiang provinces outside the market, the income of Zhejiang's foreign market also increased from 2 million 95 thousand and 900 yuan in 2016 to 41 million 259 thousand and 900 yuan in 2018. However, at present, Mankaron is still a regional brand in the jewelry industry. The sales revenue mainly comes from the sales in Hangzhou and Ningbo area of Zhejiang province. From 2016 to 2018, the income from Hangzhou and Ningbo accounted for 68.57%, 62.81% and 60.03% of the company's main business income respectively. At present, the national influence has not yet been formed.

However, investor network noted that although the recent three years of the achievement of the growth of Mann Caron, its revenue in 2018 is still down compared with 2013. From 2014 to 2016, the operating income of man Caron continued to decline, which was 999 million yuan, 898 million yuan and 750 million yuan respectively. At that time, the company said that under the background of the adjustment of industry and the fall of gold prices, the company actively adjusted its marketing strategy, optimized product structure, and superimposed macro and micro factors, resulting in a decline in company revenue during the reporting period.

Why does net profit fluctuate?

Another point to note is that from 2014 to 2016, the profits of the company continued to rise in the context of the declining revenues of the company. In addition, investor net has looked at the financial data of Mann Caron in the past 6 years and found that the profit of man Carlung net fluctuated greatly. From 2013 to 2018, the net profit attributable to the shareholders of the parent company was 44 million yuan, 24 million yuan, 30 million yuan, 56 million yuan, 44 million yuan and 55 million yuan respectively, representing 0.58%, -46.52%, 28.94%, 82.99%, -21.45% and 25.61% compared with the previous year.

The investor net further examines the results of the financial report, finding that the company has reduced the total operating cost of the company by continuously reducing its operating costs and selling costs. From 2013 to 2018, the operating cost of man Caron was 985 million yuan, 788 million yuan, 708 million yuan, 550 million yuan, 646 million yuan and 694 million yuan respectively, and the selling expenses were 124 million yuan, 125 million yuan, 95 million 419 thousand and 300 yuan, 87 million 702 thousand and 500 yuan, 91 million 164 thousand and 700 yuan, and 91 million 164 thousand and 700 yuan respectively. It can be seen that between 2013 and 2016, the business costs and sales expenses of man Caron are decreasing. Although it grew after 2016, it was still much lower than in the 2013.

In terms of business cost, because the main raw materials of the company are gold, platinum, diamond and so on, the operating cost will be affected by the price of gold, and there will be some fluctuations. At the same time, in recent years, the number of purchases has been reduced and the operating cost has been reduced to a certain extent. According to Wind data, the cash paid for the purchase of goods and services by Mann Caron in 2014 has also decreased. From 2014 to 2018, it was 760 million yuan, 644 million yuan, 586 million yuan, 713 million yuan and 774 million yuan respectively.

In terms of selling expenses, from 2014 to 2016, as the company adjusted the layout of marketing outlets, the total amount of rental and decoration fees, wages and benefits decreased in sales expenses.

In addition, taxes and charges are not decreasing in the total business cost of man Caron. From 2013 to 2018, the taxes and attaching of man Caron were 43 million 733 thousand and 900 yuan, 32 million 833 thousand and 200 yuan, 24 million 725 thousand and 900 yuan, 17 million 982 thousand and 900 yuan, 14 million 638 thousand and 500 yuan and 14 million 680 thousand and 900 yuan respectively. The reduction in taxes and collateral is also one of the reasons why the company's net profit has been maintained.

In the last three years, the gross profit margin of the sales of man Caron was 26.62%, 22.87% and 24.57% respectively, which was higher than that of the company from 2013 to 2015.

Investor net noted that in August 2, 2012, Xinhai venture, Zhejiang businessman Li Hai and Mann Caron and Sun Songhe and Mann Caron invest in the investment agreement of Zhejiang's Limited by Share Ltd, and in April 23, 2019, Xinhai venture, Zhejiang businessman Li Hai and Mann Caron and Sun Songhe and Mann Caron invest in the signing of the "man Caron jewelry Limited by Share Ltd supplement agreement" (two). If man Caron has withdrawn the application materials, or has issued a listing application rejected, or has failed to issue the listing, there will be a risk for Sun Songhe and Mann to invest in buyback of all the issuers.

Against this background, for man Caron, IPO can only be carried out to the end. Three years ago, the company's current revenue situation has gradually improved, so can this man's successful landing in the capital market? Investor net will continue to track and observe. Author: Zhong Chuhan