Two Years Market Value Shrank 70% Stores 40% La Natsu Bell Real Controller Three Times To Clear Assets

In just two years, La Natsu Bell's market value dropped from 12 billion yuan in the peak period to about 3 billion yuan now, and the number of stores was reduced from 9500 to 5500.

In January 3rd, the only La Natsu Bell company in Shanghai, the A apparel Limited by Share Ltd (603157.SH, 603157.SH), again released its share repurchase progress.

The announcement shows that it repurchased 485 thousand shares of A shares at about 2 million 834 thousand and 200 yuan on the day of January 3rd, accounting for 0.09% of the issued shares. A slightly earlier A share announcement shows that as of December 31, 2019, it had accumulated a total cost of 10 million 165 thousand and 300 yuan to repurchase 1 million 881 thousand and 800 shares of A shares, accounting for 0.34% of the total share capital of the company, accounting for 0.57% of the company's A share capital.

The researchers noted that the repurchase came from a stable stock price plan announced by La Natsu Bell in September 2015. The plan stipulates that, within three years from the date when the A shares are officially listed, the price will not be changed due to force majeure. Once the stock price is closed for 20 consecutive trading days, the closing price is lower than the latest audited net asset value per share. It will buy back the stock vote within 3 months from the date of triggering the stable stock price plan, so as to stabilize the stock price.

From July 18, 2019 to August 14, 2019, La Natsu Bell's A share price triggered a stable stock price plan. According to the repurchase program, the company will buy back A shares of 0.5-1 billion in total before March 21, 2020.

Store closes, market capitalization, performance losses, real control personnel explosion, and stripping of ion companies, La Natsu Bell's actions in recent two years are not always satisfactory. But for the first three quarters, La Natsu Bell clearly has a long way to go.

Poor performance

La Natsu Bell, founded in 1998, was listed on the main board of the stock exchange of Hongkong in 2014 and listed on the Shanghai stock exchange in 2017. It became the only "A+H" listed clothing company, and its market value reached 12 billion yuan at its peak.

La Natsu Bell, the main female leisure wear, owns many women's clothing brands, such as Puella and Candies, as well as men's wear and children's wear brands. At the beginning of its listing, it had been striving for the "Chinese version of ZARA".

La Natsu Bell also raised almost all of the two listed funds for the expansion of the retail network, and its number of offline outlets grew rapidly. By the end of 2017, the number of offline outlets of La Natsu Bell has reached 9448, covering all major shopping malls in the country, and the company has set a goal of breaking through 1 stores nationwide by the end of 2020.

From the point of view of revenue, the effect is obvious. In 2017, La Natsu Bell realized operating income of 8 billion 999 million yuan, an increase of 5.24% over the same period last year. In 2018, operating income reached 10 billion 176 million yuan, up 13.08% over the same period last year. However, it is hard to predict the net profit from the deduction of non return to mother. In 2017, La Natsu Bell deducted the net profit from non return to the parent company to achieve 380 million yuan, down 19.53% compared to the same period last year. Net loss in 2018 was 2.45 yuan, down 164.43% from the same period last year.

In addition to the decline in performance, high inventory is also unbearable for La Natsu Bell. According to its prospectus and earnings report, the company's inventory increased from 1 billion 327 million yuan at the end of 2014 to 2 billion 345 million yuan at the end of 2017, and thereafter remained stable at more than 2 billion yuan. The three quarterly report in 2019 showed that the book value of its inventory remained as high as 2 billion 199 million yuan as of the end of the reporting period.

In the face of the grim situation, La Natsu Bell had to carry out business transformation and adjustment, in addition to the original direct mode based on the implementation of joint ventures, franchise and other ways, also closed a large number of stores nationwide to save costs.

By the end of 2018, the number of offline retail outlets in La Natsu Bell dropped to 9269, of which 31 were retail outlets. In 2019, the number of offline outlets decreased further. At the end of the three quarter, the number of stores decreased by 3756 to 5513 compared with the end of 2018, and the average number of outlets closed nearly 14 per day. Compared to 9448 in the peak period, the number of stores in La Natsu Bell has decreased by over 40%.

It's just that a large scale shop has not effectively saved La Natsu Bell's declining trend, and still faces enormous financial pressure. By the end of the three quarter of 2019, the total assets of the company amounted to 9 billion 702 million yuan, with a total liabilities of 7 billion 161 million yuan, and the asset liability ratio had reached 73.81%.

In addition, La Natsu Bell's actual control of Xing Jiaxing's pledge to share 141 million 600 thousand shares of Haitong Securities has broken the warehouse, and pledge shares account for 25.85% of the total share capital of the company, accounting for 99.81% of its direct holdings. The problem has not yet been resolved.

To add insult to injury, La Natsu Bell products still have quality problems. According to information from heaven, La Natsu Bell was fined 6000 yuan in November 12, 2019 and was confiscated by 635.6 yuan of illegal gains by Shanghai Fengxian District Market Supervision Bureau because of adulteration, adulteration, adulteration and adulteration in production and sale products.

Divestiture assets

In addition to adjusting the business strategy to close the offline outlets, La Natsu Bell also cleaned up the controlling subsidiaries in three years to return the funds or get rid of the bad assets.

In May 2019, La Natsu Bell decided to make a price of 200 million yuan to Hangzhou Yan Er business management consulting Co., Ltd. (hereinafter referred to as "Yan Er business management") to sell the controlling subsidiary, Hangzhou dark Agel Ecommerce Ltd (hereinafter referred to as Hangzhou dark involved) 54.05% stake. After the completion of the transaction, the Hangzhou involvement will no longer be included in the La Natsu Bell consolidated statement, and the proceeds from the sale will mainly be used for the development of La Natsu Bell's business.

The researchers noted that Hangzhou was founded in January 2010, and the main apparel brands such as seven grid, OTHERMIX and OTHERCRAZY have been stripped off after the transaction. By the end of 2018, the total assets of Hangzhou were 390 million yuan, 300 million yuan net assets, 504 million yuan in 2018, and 64 million 354 thousand and 100 yuan net profit.

It is worth noting that La Natsu Bell associated with natural person Cao Qing holds 100% stake in goose's business management, while Hangzhou is involved in La Natsu Bell holding subsidiary, and Cao Qing directly owns the 23.86% stake in Hangzhou, and the transaction constitutes a related transaction.

In October, La Natsu Bell, a subsidiary of Jack Walker (Shanghai) Garments Co., Ltd. (hereinafter referred to as Jack Walker), went bankrupt and liquidated. After bankruptcy liquidation is completed, Jack and Walker will no longer be included in their consolidated statements.

Founded in July 2009, Jack Walker was the main leisure man in 2015 and was bought by La Natsu Bell. After the acquisition, Jack, not only failed to bring profits to La Natsu Bell, but continued to lose money. By the end of 2018, Jack Walker's total assets amounted to 174 million yuan, with net assets of -1.66 billion yuan, and operating income of 172 million yuan in 2018 and net loss of 162 million yuan. By the end of 9 in 2019, the bankruptcy liquidation will cause a net loss of not more than 41 million yuan to La Natsu Bell.

In December, La Natsu Bell decided to deal with his controlling shareholder for the third time, which involves home business. La Natsu Bell's wholly owned subsidiary Shanghai La Xia Business Management Co., Ltd. (hereinafter referred to as La Xia business management) intends to make a price of 1 yuan to Blue Lake investment management consulting (Shanghai) Co., Ltd. (hereinafter referred to as Blue Lake investment), and transfer the 60% stake of the holding interstate Industrial (Shanghai) Co., Ltd. (hereinafter referred to as "inter industry").

La Natsu Bell said that the transfer of stock rights has been reached, and it will no longer hold any industrial equity. At the same time, the balance of operating loans provided by the industry is 37 million 400 thousand yuan. If the total provision for bad debts is prepared in full, it is expected to cause a net loss to its mother in 2019 of not more than 8 million 900 thousand yuan.

The announcement shows that as of the end of 2018, the total assets of the assets of the group reached 897 million yuan, with a net assets of 868 million yuan, with no net operating income of 26 million 895 thousand and 500 yuan in 2018. As an asset to be sold, it was founded in November 2016, and its performance is also worrying. As at the end of 11 in 2019, its total assets amounted to 29 million 295 thousand and 100 yuan, with net assets of -5057.43 million yuan, operating income of 9 million 38 thousand and 400 yuan and net loss of 37 million 116 thousand and 400 yuan during the period.

Efforts have made La Natsu Bell's performance still not improving. According to its three quarterly report in 2019, La Natsu Bell realized business income of 5 billion 757 million yuan in the first three quarters, down 7.16% compared to the same period last year. The net loss from non return to mother was 913 million yuan, down 645.20% from the same period last year.

By the end of January 3, 2020, the market value of La Natsu Bell A shares was only 3 billion 193 million. Compared with the peak period, the market value of the shares has evaporated over 70% over the past two years.