Or Is It Suspended? What's Wrong With The Pathfinder?

300005.SZ, a "first class outdoor product" listed company, has finally realized profitability in the first half of this year after losing money for two consecutive years, and whether it can avoid delisting or not depends on its performance.

In September 2nd, the Pathfinder holding group Limited by Share Ltd (hereinafter referred to as "Pathfinder") issued a risk warning notice about possible suspension of listing of shares. The announcement shows that the total loss of goodwill, investment and assets has been increased in the past 2017 years and 2018 years.

The Changjiang Commercial Daily reporter noted that the Pathfinder set a historical high in 2015, reaching 29 yuan / share. At that time, the leading position in the medium and small market was undoubtedly, but the current Pathfinder shares were less than 4 yuan, only 13% of the peak. By the end of September 3rd, the Pathfinder reported 3.91 yuan / share, with a market value of 3 billion 480 million yuan.

Market value shrank by 87%

In September 2nd, Pathfinder issued a risk warning announcement that stocks might be suspended from listing. The announcements showed that Pathfinder had been losing money for two consecutive years in 2017 and 2018 because of the large amount of goodwill, investment and assets impairment that had not been achieved in the previous period.

According to the rules of Shenzhen Stock Exchange listing, if the company's 2019 annual audit report is ultimately identified as a loss, the company's shares will be suspended from the date of the company's disclosure of the 2019 annual report. The Shenzhen stock exchange will decide whether to suspend the listing of the company's stock within 15 trading days after the suspension.

However, Pathfinder explained that although the company lost 2017 consecutive years in 2018 and 2018, the main business of outdoor products in these two years has been developing steadily and has made continuous profits. The main reason for the company's loss is due to the impairment of goodwill, investment and assets due to the anticipated amount of investment in the earlier period. After 2016-2018 years of three consecutive years, the space and risk of further impairment of the company's previous related investment projects in 2019 and subsequent years have been very small.

Statistics show that pathfinder was founded in 1999 by two Sheng Faqiang and Wang Jing couples, whose main business includes outdoor research and development, sales, outdoor information service, travel business and sports business. In 2009, Pathfinder successfully landed on the gem and became the "first outdoor product". Sheng Fa Qiang and Wang Jing two were the top two shareholders. As of September 3, 2019, Sheng Fa accounted for 21.91% of the shares and 9.03% of Wang Jingzhan shares, accounting for 30.94% of the total shares.

In the past 2009-2013 years, the average net profit growth rate exceeded 55%. However, in 2014, Pathfinder began to show a slowdown in performance, a net profit of 18.28%.

In 2015, the first decline in the performance of Pathfinder resulted in a net profit of 263 million yuan, down 10.5% from the same period last year. In 2017, the Pathfinder suffered the first loss since the listing, net profit loss of 84 million 853 thousand and 900 yuan, and net profit loss of 185 million yuan. In 2018, net profit fell even more, with a loss of up to 182 million yuan.

At the same time, the Yangtze daily news reporter also noted that during the peak of 2015, the searcher's stock price was close to 29 yuan, and the total market capitalization was nearly 26 billion yuan. But four years later, by the end of September 3, 2019, the Pathfinder's stock price was 3.91 yuan / share, and its market value was 3 billion 480 million. We can see that the market value has shrunk by 87%.

Sheng Faqiang and Wang Jing, the founder of Pathfinder, continue to cash in on their stock and performance. Data show that since 2012, Sheng Fa Qiang and Wang Jing total reduction of 15 times, cash in 683 million yuan. Especially in 2017, Sheng Fa strong total reduction of 11 times.

Net profit rose 239% in the first half

In 2015, the Pathfinder began to adopt the strategy of extensional expansion, and the company changed into a pathfinder holding company. Thereafter, the company carried out large-scale external investment. It has invested in Xiamen Tu Tu, Yi you world, green field international travel agency and so on. However, the above business did not bring improvement to the performance, but made the Pathfinder go astray.

Among them, the easy to travel world that the Pathfinder bought became the most failed project. In the first half of 2015, -2019 continued to lose money in four and a half years, and the loss in the first half of this year was 468 thousand and 800 yuan, compared with a loss of 4 million 367 thousand and 200 yuan in the same period last year.

In addition, in December 2018, Xiamen's three consecutive year's performance failed to reach the standard vertebrae, and the original shareholders had to repurchase 15.7% of the company's shares in accordance with 155 million yuan. In June of this year, the green field international travel agency also repurchased the company's 43% stake in the green country brigade because its performance failed to meet the target.

It is noteworthy that reporters combed the semi annual report in 2019, found that there are currently 14 main stakeholders in the Pathfinder, of which only four are profitable, with the highest net profit being Liaoning North Fuyuan Trading Company, with a profit of 1 million 934 thousand and 600 yuan in the first half of the year. Its subsidiaries have varying degrees of losses, of which the extraordinary exploration (Tianjin) outdoor products Co., Ltd. has a deficit of up to 14 million 812 thousand and 500 yuan, and Tianjin's new starting point Cci Capital Ltd loses -995.96 million yuan.

Faced with losses, the management of the Pathfinder completed the general election. Wang Jing, one of the Pathfinder founders and one of the actual controllers, returned to the Pathfinder and served as chairman and CEO. After taking office, Wang Jing put forward the strategy of "returning to the main industry" in 2018 in the 2017 annual report of Pathfinder, setting up the strategic direction of "focusing on outdoor industries and integrating and distributing resources around the main industry".

After a year and a half of transformation, the main indicators of the Pathfinder have improved.

The semi annual 2019 semi annual report showed that its net profit in the first half of the year was 81 million 855 thousand and 900, up 239.36% over the same period last year. In addition, Pathfinder expects net profit of 102 million yuan in the third quarter of 2019, up 302.58% over the same period last year. And said, "efforts will be made to ensure the achievement of the annual performance goals".

In fact, the Pathfinder should not only solve the brand's own problems, but also face the pressure of competitors. In recent years, although the growth rate of outdoor products market is slowing down, the major sports brands have not ignored this market. Anta successfully acquired amamin sports in March of this year. XTEP also announced its partnership with Wolverine, a joint venture partner, to develop, marketing and distribute the running shoes brand, St. John's and the outdoor footwear brand, in mainland China, Hongkong, China and Macao.

For the future development trend of the Pathfinder, the clothing industry observer, general manager of Shanghai Liang Qi Brand Management Co., Ltd., Cheng Wei hung, told the Yangtze daily news reporter that "if there is no accident, the second half of the year should be able to continue to make profits. In the second half of the year, the gains from autumn and winter will account for over 60% of its annual performance, which will be profitable in the first half of the year, and will be profitable in the second half of the year. As the main outdoor market for explorer, the space for the growth of the Pathfinder has been seriously narrowed. High-end brands have been dominated by foreign brands, and the low-end outdoor market is dominated by local brands. However, Pathfinder still has the advantage of first mover.