Usher In "Darkest Moment", La Natsu Bell Suddenly Announced "Burst Warehouse"

Known as the "China Version ZARA" and the first domestic A+H share listed clothing company, La Natsu Bell ushered in the "darkest moment".

The latest information disclosed by the company on August 6th night shows that the proportion of controlling shareholder's pledge is close to 100%, and has constituted a breach of contract, which is commonly known as a pledge explosion.

The semi annual performance forecast issued in 2019 not only released the first half of the year, but also fell from 300% yuan to -5.4 billion yuan in the first half of the year, down by about -4.4. Meanwhile, in the first half of the year, there were over 2400 stores under its crazy closing line.

　　 Real control shareholding ratio of nearly 100%

On the evening of 6, La Natsu Bell announced that the 141 million 600 thousand shares of A shares of Haitong Securities, which were mortgaged by controlling shareholders and actual controllers, were lower than the minimum performance guarantee ratio, which had already constituted a breach of contract because they had not been reacquired in advance and failed to take the performance guarantee measures. Xing Jiaxing said

The announcement said that Xing Jiaxing directly held about 142 million shares of the company, accounting for 25.91% of the total share capital of the company, accounting for 42.62% of the total A share of the company. From November 2017 to June this year, Xing Jiaxing has mortgaged the shares held to Haitong Securities for the 6 time.

Up to now, xingjiaxing accumulatively pledged 141 million 600 thousand shares of the company, accounting for 25.85% of the total share capital of the company, accounting for 42.54% of the total A share of the company, accounting for 99.81% of its direct holdings.

Another announcement issued by La Natsu Bell on the same day showed that in recent years, due to the fluctuation of stock prices, the company's actual controller of Shanghai United summer Investment Co., Ltd., in August 6th, handled 6 million shares of A shares held by the company. Prior to this, Shanghai and summer has pledged 3 shares of the company's shares to CITIC Securities.

According to the announcement, Shanghai has 45 million 204 thousand and 390 shares, accounting for 8.25% of the total share capital of the company, accounting for 13.58% of the total share capital of A shares. At present, 38 million 500 thousand shares of the total Pledged Shares, representing 7.03% of the total share capital of the company, account for 11.57% of the total share capital of A shares, accounting for 85.17% of the shares held by them.

Xingjiaxing and Shanghai have accumulated 180 million 100 thousand shares of Pledged Shares, accounting for 32.88% of the total share capital of the company, accounting for 54.10% of the total share capital of A shares, accounting for 96.27% of their total holdings.

　　 "China Version ZARA", the first AH listed clothing company in China.

In the clothing industry, La Natsu Bell, founded in 1998, is known as the "China Version ZARA". The main female leisure wear has become the representative of civilian fashion.

The founder of the company is Xing Jiaxing. When he was 21 years old, Xing Jiaxing took hundreds of dollars from his mother and made a mistake in reporting a clothing training class. After graduation, he entered a Taiwanese garment factory, which opened the fate of his clothes.

Between July 1996 and July 1998, xingjiaxing began to do the distribution business for Sophie's old clothes. In fact, it was the clothing agent who sold Sophie's clothes to Shanghai. In 1998, xingjiaxing saw the market of brand clothing, decided to create its own brand, raised 500 thousand yuan of registered capital, and "La Natsu Bell" was born.

French "La Chapelle" (La Natsu Bell) is translated into Chinese as "chapel" and is a romantic street in France. It is said that Xing Jiaxing was living in this street full of French culture when he conceived the brand.

In the face of the Chinese market, xingjiaxing's strategy is to expand rapidly and seize the site. Before 2011, La Natsu Bell had only 3 women's wear brands and 1841 stores. In 2012, xingjiaxing put forward the development strategy of "multi brand and direct camp".

Since 2015, the company has basically ceased its new brand, mainly through investment cooperation to develop new brands. At this point, it has opened up a M & a mode of "buy and buy". In that year, 1006 new retail outlets were added to the country, which is more than ten times the number of new fast fashion brands such as ZARA and H&M.

According to the financial report, La Natsu Bell achieved 9 billion 96 million yuan in 2015. It is disclosed that sustained expansion of retail outlets and rapid growth in online platform revenue are the main reasons for the company's revenue growth.

In October 9, 2014, La Natsu Bell listed on the main board of Hongkong stock exchange. Since then, after several rounds of A shares in September 2017, La Natsu Bell finally landed on the Shanghai Stock Exchange and became the first A+H share listed clothing company in China.

La Natsu Bell's rapid expansion did improve his performance in the short term. But not long after, the problems of low efficiency, high inventory and so on caused by rapid expansion, enterprise strategy and other issues began to appear. In addition, with the continuous popularization of e-commerce platform, a series of problems followed.

　　 First loss in 2018, a huge loss of 500 million in the first half of this year.

In addition to the fact that the proportion of real controlling shareholder pledge is close to 100%, its operating performance in recent years has been rather bleak.

On the evening of July 30th, La Natsu Bell announced the semi annual performance loss announcement in 2019, saying that the net profit attributable to shareholders of Listed Companies in 2019 was -4.4 billion yuan to -5.4 billion yuan, down about 286.6% to 329% compared with the same period last year. The net profit attributable to shareholders of listed companies was -4.9 billion to -5.9 billion yuan, down by 364.5% to 418.5% over the same period last year.

This is the worst earnings report since La Natsu Bell went public. The reason for the loss is that the company is affected by the continuous downturn of the domestic public apparel retail market and the active optimization of the channel structure under the double influence.

In the first half of 2019, La Natsu Bell's revenue dropped by over 20% over the same period last year. At the same time, the acceleration of over season sales of goods led to a decline in the average gross profit margin of the commodities. The company's business transformation and adjustment, and the reduction of capital and efficiency are being actively promoted. But the actual effect still needs a certain time to step by step.

La Natsu Bell also said that due to changes in the external financing environment, bank loans continued to be returned during the reporting period, which had a negative impact on its 2019 spring, summer goods orders, and so on.

In fact, La Natsu Bell's losses began last year.

Financial data show that in 2017, the company's revenue was 8 billion 999 million yuan, and its net profit to the parent company was 499 million yuan, down 6.29% from the same period last year. In 2018, the company's revenue was 10 billion 176 million yuan, but its net profit to the parent company was -1.6 billion yuan, down 132% from the same period last year.

According to the annual report, in 2018, La Natsu Bell's short-term borrowing amounted to 1 billion 912 million yuan, while the money on the account was only 605 million yuan, and the inventory was up to 2 billion 534 million yuan. In addition, there was a long-term loan of 331 million yuan.

In the first quarter of 2019, La Natsu Bell's net profit reached 9 million 751 thousand yuan. At that time, the company had predicted that its semi annual net profit would drop by more than 50%, but according to the forecast data, the situation was far beyond expectations and very optimistic.

　　 In the first half, more than 2400 stores were closed, and 13 stores were closed daily.

In addition, La Natsu Bell said in his semi annual performance forecast announcement that the company took the initiative to adopt a strategy of shrinkage adjustment, focusing on high value business. As of the end of June 2019, the number of outlets under the domestic line decreased by more than 2400 compared with the end of 2018. According to this calculation, the number of stores closed by La Natsu Bell exceeds 13 in the first half of this year.

According to the disclosure, as of December 31, 2018, La Natsu Bell had 9269 offline retail outlets. By the end of June, the number of stores has been less than 7000, according to the number of semi net stores reduced in the announcement.

In fact, since 2018, La Natsu Bell has been shutting down stores. Although the accelerated closing of the store may lead to a certain decline in its revenue, theoretically, the cost should also be reduced. However, the 2018 annual report shows that La Natsu Bell's sales expenses amounted to 6 billion 32 million yuan, up 38.51% over the same period last year, and the management cost was 504 million yuan, an increase of 29.51% compared with the same period last year. The financial cost was 52 million 465 thousand yuan, an increase of 216.42% over the same period last year.

The regulatory authorities have asked the company to explain this problem. La Natsu Bell summed up the reasons as follows: the rise in the average wage of the society resulted in an increase in the cost of staff, and the amortization of the expenses to be amortized was accelerated by amortization of inefficient stores.

La Natsu Bell's share price is also the same as his performance. Less than 2 years after the A share listing, its stock price hit a record high of 31.42 yuan in October 2017, even at the top 20 yuan in the first half of 2018, while its latest stock price is only 5.16 yuan, a drop of nearly 80% in one year, and a 83.6% decrease from the historical high.

On the 6 day, its share price was as low as 4.96 yuan, a record low.