La Natsu Bell's Net Loss In The First Half Of The Year Decreased By 2500 From 517 Million Retail Outlets.

On the evening of August 28th, La Natsu Bell (603157) released the first half of 2019. Data show that during the reporting period, La Natsu Bell realized operating income of 3 billion 952 million, down 9.78% compared to the same period last year; net loss to the parent company was 498 million yuan, down 311.2% compared with the same period last year; the net loss of non net loss was 571 million yuan, down 408.5% compared to the same period.

The company said in its earnings report that as of June 30, 2019, La Natsu Bell had 6799 offline retail outlets, down 26.65% from the same period last year. The company previously disclosed that as of December 31, 2018, the number of stores was 9269.

An average of 13.57 stores closed each day, resulting in a decline in performance.

In view of the decline in operating income, La Natsu Bell explained that because the initiative implemented a strategic contraction strategy, the reporting period was closed and inefficient. At the same time, affected by multiple factors such as strategic contraction strategy, slow growth in consumption and reduced passenger flow in physical stores, LaChapelle, Puella, 7Modifier and LaBabit e of major women's clothing brands decreased by more than 20% year-on-year. From the point of view of channels, the sales revenue of counters, monopolization and e-commerce channels declined compared with the same period last year.

The company said that the main reason for the loss of net profit was the decrease in gross profit of the company in the first half of the year, which was 1 billion 115 million yuan lower than that of the first half of the year. The company's operating income decreased significantly compared with the same period last year, and the company accelerated the digestion of the seasonal products, resulting in a decline in gross profit margin and a corresponding decrease in gross sales. In addition, the implementation of the new leasing criteria had a 44 million 610 thousand yuan impact on the net profit attributable to shareholders of Listed Companies in 2019.

The company said that such measures as business transformation, readjustment, cost reduction and efficiency increase are all advancing, but the actual effect still needs a certain time to be gradually reflected. The reduction in the period cost can not offset the effect of gross profit decrease, and the fixed cost is higher, and the corresponding decrease ratio is less than the lower level of the income.

Such a huge retail network, La Natsu Bell uses a direct business mode. La Natsu Bell also acknowledged in the earnings report that "multi brand, direct business oriented" business model is facing tremendous pressure of increasing operating costs such as labor and rentals. The company said that although it actively promoted franchised and joint venture business during the reporting period, the expansion of the retail market in the first half of 2019 was slower than expected.

Footwear industry analyst Ma Gang told reporters that the advantage of direct operation is channel control, but assets are heavy and investment is large, which is suitable for enterprises with sufficient capital. Franchisees are more flexible.

　 Operating cash flow has returned to a large scale and the debt rate is rising again.

Data show that at the end of the reporting period, the net cash flow generated by La Natsu Bell's business activities was 1 billion 157 million yuan, which was -2.56 billion in the same period last year.

In this regard, La Natsu Bell explained that the cash flow due to the purchase of goods and services received during the current period was lower than that of the same period, and the rental fee was recognized as cash related to other fund-raising activities under the new leasing criteria.

Choice data show that at the end of the reporting period, La Natsu Bell's total liabilities amounted to 7 billion 365 million yuan, up 121.37% over the same period last year, and the asset liability ratio was 71.99%, excluding the new leasing criteria, and the company's asset liability ratio was 64%, which was 59.01% last year. The ratio of current liabilities to total liabilities is 62.89%, and the non current liabilities due within one year increased by 271.98% to 90 million 90 thousand yuan, mainly due to the newly confirmed lease liabilities under the new lease criteria.

La Natsu Bell said that the company's sales revenue has not been significantly improved, especially due to the company's operating losses, while taking into account the company's business activities and repayment of the debt due to the pressure of debt payments, Future Ltd in cash liquidity risk may exist. In order to fully control liquidity risk, on the one hand, the company increases the collection of accounts receivable; on the other hand, it broadens financing channels to revitalize long-term assets and optimize the structure of assets and liabilities.

Data show that at the end of the reporting period, La Natsu Bell's accounts receivable decreased by 38.81% to 631 million yuan compared with the previous year. The company's explanation is called increasing sales recovery.

The main industry is under pressure. La Natsu Bell begins to deal with financial assets and seeks to focus on the main business. In the first half of the year, the company announced the sale of its controlling subsidiary, Hangzhou's 54.05% stake in Agel Ecommerce Ltd, with a transaction value of 200 million yuan. The sale proceeds will be used for the development of the company's business, and the delivery will be completed by the end of May 2019. The wholly owned subsidiary of the company will transfer the 98.04% share of the Tianjin star Kuwait enterprise management consulting partnership (limited partnership) with a transaction price of 275 million yuan, and the delivery will be completed in June 24, 2019.

In the earnings report, La Natsu Bell admitted that the company had a higher inventory balance and its risk of falling prices. As of June 30, 2019, the company's stock was 2 billion 159 million, the inventory turnover days were 273.33 days, and the inventory turnover days of the company were 217.06 days at the end of 2018.

As of August 28th closing, the La summer bell reported 5.25 yuan / share, down 0.12%, less than 1/4 of the October 2017 stock price high.