La Natsu Bell Faces Three Crises, Can He Return To The Benign Track?

La Natsu Bell, who is struggling to transform, is still following the crisis.

The problem of controlling shares of xingjiaxing's equity pledge has not been solved yet. The company's performance has continued to decline and the extent of its losses has further increased.

Xing Jiaxing once said that within a year, let La Natsu Bell return to a healthy track. Is it really that easy to turn around the big wheel in the clothing industry?

Actual control of people's mortgage explosion

At the end of last month, Xing Jiaxing, the real controller of La Natsu Bell, proactively announced that the 141 million 600 thousand shares of Haitong Securities had been breeded by the pledge, which constituted a breach of contract. The problem has not yet been solved.

In 2017, shortly after La Natsu Bell (603157.SH) A shares were successfully listed, Xing Jiaxing pledged 35 million shares and 40 million shares respectively. In September 2018 - June this year, Xing added 4 times of his remaining shares to Haitong Securities.

At present, xingjiaxing holds 141 million 900 thousand shares of the company directly, accounting for 25.91% of the total share capital of the company, and the total pledged share has accounted for 99.81% of its total shareholding.

Shanghai summer is the two largest shareholder of La Xia Bei Er, Xing Jiaxing and the company's core management personnel, the backbone of the employee stock ownership platform, currently holding 8.25% of the company's shares, as Xing Jiaxing's concerted action.

The situation in Shanghai is also not optimistic.

In May 2018, Shanghai and summer will pledge 22 million shares to CITIC Securities. In October and February this year, two shares will be supplemented by 10 million 500 thousand shares, and 6 million shares will be added to August this year. Up to now, Shanghai has accumulated 38 million 500 thousand shares in the summer, accounting for 85.17% of its total 45 million 204 thousand and 400 share holdings.

According to statistics, xingjiaxing and Shanghai summer accumulated 180 million shares, accounting for 96.27% of the total shareholding.

From the perspective of listed companies, Xing Xing Xing has not had much financing chips.

In August of this year, when the first exposure of stock pledge was broken, Xing Jiaxing told the media that he would suspend other investments and deal with his debt problem within one or two months, so that equity pledge could return to a reasonable level. Judging from the latest announcement, it is not easy to solve this problem.

According to the survey, xingjiaxing's personal investment is not only La Natsu Bell but also its investment in the agricultural field in Pucheng County, Fujian.

Corporate debt ceiling

La Natsu Bell's financial position is also not optimistic.

As the first A+H clothing listed company in China, La Natsu Bell has been taking the lead in the capital level.

Under the control of capital, La Natsu Bell opened up shop in the domestic market with the mode of multi brand direct operation, and the scale of the company grew rapidly. In the domestic market, through the continuous opening of stores in the domestic market and the mode of multi brand direct operation, La Natsu Bell grew rapidly and profitability was very impressive.

La Natsu Bell walked very smoothly all the way. So, in the past two years, xingjiaxing's personal energy has been more focused on the construction of the company's headquarters building.

When the industry crisis came, La Natsu Bell did not prepare ahead of schedule.

The crazily opening of stores has brought about rapid development, and at the same time, it has also dragged the company into a crisis as a whole. By the second half of 2018, it was too late for the company to adjust urgently.

In recent years, La Natsu Bell's asset liability ratio has risen steadily, reaching 73.81% at the end of the three quarter of this year, far higher than the industry average.

At the end of the first half of this year, the company had 363 million yuan in monetary capital, 1 billion 657 million yuan in short-term loans, and 1 billion 281 million yuan in restricted assets at the end of the term, accounting for 44.70% of net assets. At the end of the three quarter, the company's Monetary Fund was 235 million yuan, and short-term loans and liabilities for non current liabilities in one year amounted to 1 billion 878 million yuan.

In the short term, the company adjusts funds in and out, increases the downstream payment, extends the payment cycle to the upstream and downstream payables, and improves the operating cash flow in the first three quarters of this year. However, the company's efforts in raising funds are obviously not as good as in previous years, and the net cash flow generated by the fund-raising activities is -11.04 billion yuan.

Under the pressure of cash flow, La Natsu Bell had to choose a broken arm to survive.

Xing Jiaxing's prescription to the company is to close down the loss shops and dispose of some fixed assets; the operation channels are mainly from direct camp to direct operation, joint operation and affiliation, and further to the three or four line cities; to adhere to the multi brand strategy and to focus on the core brand.

The scale of stores was once one of La Natsu Bell's core strengths. In 2014 -2017, the number of stores increased from 6887 to 9448, and negative growth for the first time in 2018.

Since the beginning of this year, the company has stepped up its efforts to close stores.

In the first three quarters of this year, the total number of stores closed to 4517, with 761 new stores opening at the same time, and 5513 stores at the end of the year, a decrease of more than 40% from the end of last year.

Brand, the company further focus on women's clothing, shrink the size of the development of men's clothing business.

As far as possible, the company divestitures its investment which is not related to the main business. In May of this year, Hangzhou transferred 54.05% stake in the dark market and the transaction price was 200 million yuan. This is the company's strength in 2015. Online retailers Business, and acquired assets.

In June, a wholly owned subsidiary of La Xia management was transferred to Tianjin star Kuang 98.04% share with a transfer of 275 million yuan.

Decline in performance

Xing Jiaxing is a typical peasant family born in Pucheng County, Fujian. In the early years, he went into the clothing industry.

During the SARS period in 2003, Xing Jiaxing led La Natsu Bell in a big gamble and became famous in World War I.

At that time, affected by SARS, the retail industry in China was severely defeated. At this time, Xing Jiaxing has increased the production of horsepower against the trend. He will surely be controlled by SARS. After being controlled, he will usher in a wave of consumption frenzy.

Xing Jia Xing gamble.

SARS alerts were lifted, people rushed into shopping malls, La Natsu Bell stores vigorously promoted sales, and quickly let the brand take a firm foothold in the market.

The company listed on the HKEx in 2014, and capital contributed to the rapid growth of the company.

With the rapid growth of the number of stores, the company's revenue scale continues to rise. In 2013 -2018, business income increased from 5 billion 40 million yuan to 10 billion 200 million yuan.

In 2015, the net profit of the company reached its peak of 615 million yuan, and then entered a strange circle of increasing profits without increasing profits.

In 2018, the company's operating income was the first to break tens of billions of yuan, but the company's net profit from its mother was listed for the first time since its listing, with a loss of 160 million yuan. This is the second year that the company has been listed on A shares.

From the second half of last year, the company began to adjust, the contraction front and the transformation of business models were carried out simultaneously, but the performance deteriorated further.

In the first three quarters of this year, the company's operating income was 5 billion 760 million yuan, down 7.16% compared to the same period last year, and net profit loss to the parent company was 825 million yuan, down 444.69% compared with the same period last year.

This year, the company continued to increase the intensity of inventory disposal, resulting in a significant decline in gross margin. At the end of the three quarter of this year, the stock balance of the company was 2 billion 199 million yuan, a decrease of 500 million yuan compared with the same period last year. However, the proportion of current assets in the company was 57.79%, which was also increased compared with the same period last year.

In August this year, xingjiaxing told the media that it is expected that six months to a year, La Natsu Bell can return to a healthy development.