La Natsu Bell'S Big Defeat: Annual Deficit Exceeds 1 Billion 600 Million, Facing The False Proposition Of "China Zara"

La Natsu Bell was once considered to be the most likely to become the "China Zara" brand. But it never occurred to me that the former clothing star suddenly rushed to a large scale and closed down in 2019, closing about 4400 stores a year.

On the evening of January 21st, La Natsu Bell announced the 2019 annual performance loss announcement. After preliminary calculation by the financial department, it is estimated that the net profit attributable to shareholders of Listed Companies in -16 will be from -16 billion yuan to -21 billion yuan. In addition, La Natsu Bell expects that the net profit of the company's 2019 year attributable to shareholders of listed companies after deducting non recurring gains and losses is -17 billion yuan to -22 billion yuan.

On the same day, La Natsu Bell issued shares may be implemented a reminder notice of delisting risk warning. The notice shows that if the net profit attributable to shareholders of listed companies is negative after 2019 audited in the company, the company will appear negative net profit in the past two accounting years. Then, the company's A share will be implemented after the 2019 annual report is disclosed, after the implementation of the "delisting risk warning" to become *ST.

Just yesterday (February 3rd) evening, a notice made the company's difficult situation public again: Chairman Xing Jiaxing, "for personal reasons, he resigned from the third board chairman and the special committee of the board of directors, and he will no longer hold any post as a company after his resignation."

Xing Jiaxing, who pulled La Natsu Bell aside, will no longer serve as chairman of the board. This means that the management of the company is in turmoil and "cleaning", and "outsiders" will soon be in charge. Is La Natsu Bell, the most expensive women's clothing listed company in China, still alive?

　 Xing Jiaxing and La Natsu Bell's speed of life and death

Xing Jiaxing started from scratch.

He was born in Pucheng, Nanping, Fujian Province in 1972. When he was 21 years old, his mother told him to go to the city to buy seedlings. He went to the city to see the training course of clothing printing and pressure, and wanted to learn some skills.

After the training class was completed, xingjiaxing went to a Taiwanese garment factory, and later went to Beijing Institute Of Fashion Technology for half a year's costume design. After learning, he returned to the original company and started selling. But when the Taiwan boss wanted him to go to Wuhan to open a branch office, he gave up the job and went to Shanghai to start a business as a clothing agent with her friends.

In 1998, it was difficult for clothing agency to continue to expand. Xing Jiaxing wanted to create his own brand, LaChapelle. French is a chapel, and it is a small French Street.

La Natsu Bell is located in the mass consumer market. It is a fast fashion, multi brand and all direct fashion group. It has many clothing brands including LaChapelle, Puella, Candie's, 7m, LaBabit, POTE, JACKWALK, O.T.R and so on. When ZARA did not enter China, Xing Jiaxing put forward the goal of the Chinese version of ZARA.

In 2012, La Natsu Bell put forward the expansion strategy of "multi brand and direct operation" and landed on the Hong Kong stock market in October 2014. By the time of returning to A in September 2017, according to the prospectus, as of June 30, 2017, La Natsu Bell has set up 9066 offline retail outlets throughout the country, almost all of which have implemented the full direct camp mode. In the past, its revenue reached 10 billion 446 million yuan, ranking the highest in China's women's clothing listed companies.

By the end of 2017, the stores under the line continued to increase to 9448, focusing on two or three line city stores. At the same time, La Natsu Bell is still buying and buying, buying French NafNafSAS and so on.

From 2012 to 2017, the number of direct outlets increased from 1841 to 9435, and the corresponding operating income increased from 1 billion 864 million yuan in 2011 to 10 billion 446 million yuan in 2017.

Crisis breeds prosperity. From the perspective of the Chinese apparel industry, La Natsu Bell is just a microcosm.

Over the past 2006-2012 years, the overall growth rate of China's garment industry has exceeded 20%. After 2015, the overall growth rate has been leveling off, about 6%-8%. Before 2016, industry boom and rapid development. But after that, the garment industry entered a stable period of development. In the past, extensive and expanding specific drugs were no longer effective.

In 2018, the crisis broke out. In 2018, the sales volume of clothing in China was 54 billion 60 million, which was nearly 1/4 lower than that of 71 billion 910 million in 2017. During the adjustment period, La Natsu Bell failed to contract in time. In addition to the high cost of expansion, there are huge amounts of inventory.

Since 2018, La Natsu Bell's operation has not been ideal, and the large scale inventory formed by the rapid expansion of stores has brought great pressure to the company's cash flow. In 2018, La Natsu Bell lost nearly two hundred million yuan in net profit.

In the clothing industry, inventory is the most difficult pressure for enterprises to bear. La Natsu Bell's interim report also shows that as of June 30, 2019, the book value of La Natsu Bell's inventory amounted to 2 billion 160 million yuan.

La Natsu Bell himself admitted that today's defeat is due to the four major deficit factors in his performance deficit.

First, La Natsu Bell accelerated the closing of losses and inefficient stores. The number of domestic outlets has dropped from 9269 at the beginning of the year to more than 4800 at the end of the year. Due to the closing of the store's operating losses and one-time confirmation of the amortization and amortization expenses, it resulted in a loss of 400 million yuan -4.5 billion yuan.

Second, in order to speed up the operation of cash flow, La Natsu Bell increased the intensity and discount of the sale of seasonal goods. At the end of the reporting period, its inventory decreased by about 900 million yuan compared with the beginning of the year. Affected by the downturn in the retail market of apparel, the gross profit margin of sales decreased year by year, leading to a decrease of about 650 million yuan in the reporting period compared with the same period last year.

Third, due to the increase in average loan balance in 2019, interest expenses increased year by year, and the conversion of capital construction projects such as headquarters buildings resulted in an increase in depreciation charges. In addition, the new lease criteria began to apply in 2019, which led to the increase of La Natsu Bell's financial expenses. The total cost of these matters increased by about 150 million yuan -2 billion yuan.

Fourth, during the reporting period, La Natsu Bell continued to conduct a comprehensive assessment of investment projects, stop new foreign investment, withdraw from projects that do not meet the company's development strategy, resolutely deal with projects that seriously drag down performance and cash flow, and reduce or stop financial support for projects that are substantially lower than expected. As part of the investment projects own business losses and disposal of losses, resulting in La Natsu Bell reporting period loss of about 300 million yuan.

It is precisely because of these many problems that Xing Xing has gone to the choice of chairman of resignation.

In order to return the funds, Xing Jia Xing continuously Pledged Shares.

However, because of its pledge to Haitong Securities, the 142 million limited shares of the listed companies (all A shares) have been lower than the minimum performance guarantee ratio. Since they did not repurchase in advance and did not perform the safeguard measures, the pledgee had issued a written notice of stock pledge breach, which constituted a breach of contract.

As of August last year, xingjiaxing accumulated 141 million 600 thousand shares of Pledged Shares, 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.

Xing Jiaxing's pledge breach is still being solved, and in history, there are few cases of changing hands because of equity pledge.

Who will save La Natsu Bell?

Who will save La summer bell in the critical period? "Lu Er Sui" has become the focus of attention.

Xing Jiaxing submitted a letter to the La Natsu Bell board on the 3 day of February on the nomination of candidates for directors of the third board of directors of Limited by Share Ltd La Natsu Bell dress Limited by Share Ltd. He nominated "Lu Ersui and Cai Guoxin as candidates for the third independent board of directors of the company, and suggested that Lu Ersui be selected as the chairman of the third board of directors of the company. The term of office will be held from the date of examination and approval of the general meeting of shareholders to the end of the third session of the board of directors."

Who is Lu Er Sui? La Natsu Bell's employees didn't know him either. La Natsu Bell's third quarter report in 2019 showed that Lu Er Sui was the new shareholder of the ten largest shareholders.

According to public information, Lu Er Sui was born in March 1969, Chinese nationality, graduated from Yangzhou University in June 2002, and is a senior engineer in economics and management.

An unconfirmed information on the Internet is that Lu Er Sui established Nantong city new real estate development Co., Ltd. in Haimen in 1993 to catch up with the transformation of Shanghai city's old city. In the last few years, the triumphant garden was developed in Nantong. In 1999, it entered the automotive industry. In 2000, the Nantong New Town Group Co., Ltd. set up a series of high-end brand 4S shops in Nantong, Haimen, Qidong, Yancheng and Jiangxi. Many manufacturers have been commended, from single store annual sales to tens of millions, to group annual sales of 2 billion.

In 2010, the group held Haimen rural commercial bank, and he became director of the board. In 2011, Nantong Xincheng Group Co., Ltd. obtained the membership certificate of China Automobile Circulation Association and became the governing unit. In the same year, he was awarded tens of millions of tax payers in Chongchuan District, and was named "harmonious enterprise in Chongchuan District".

In 2012, Lu Er Sui became the chairman of Jiangsu Sanyou Limited by Share Ltd and successfully entered the capital market. From 2012 to 2017, he served as the chairman of Jiangsu Sanyou group Limited by Share Ltd.

In fact, in 2004, Jiangsu Sanyou signed the "agreement on the transfer of shares of Nantong friendship Industrial Co., Ltd." with the actual controllers of Nantong Textile Industry Association and Zhang Pu, Chang Xiaogang, Xie Jinhua, Ge Qiu, Shen Yongyan, Cheng Jianliang, Shuai Jian, Zhou Jingwen, Sheng Donglin and so on 9 natural persons. After the equity transfer, Zhang Pu held 30% stake in Nantong friendship Industrial Co., Ltd., which was changed to the largest shareholder of Nantong friendship Industrial Co., Ltd., and changed to the actual controller of Jiangsu three friends.

But the MBO was kept hidden until March 2010. Jiangsu's three friends were also publicly condemned by the Shenzhen Stock Exchange.

In 2015, Jiangsu three friends were listed on the back of the US health market. Since then, Lu Er Sui has set up the Jiangsu Ye Qin Garments Co., Ltd., taking the clothing business of the former three friends of Jiangsu, and served as chairman of the board.

According to the survey, there were 18 companies under the name of Lu Er Sui, of which 15 were surviving, 2 were cancelled, 1 were revoked, 16 companies were invested abroad, and 31 were in the company, mainly for wholesale and retail businesses, including apparel companies, Jiangsu Real Estate Company, automobile companies, etc.

What's interesting is that Lu Ersui's brother Lu Erdong is involved in another "new and good" equity battle in another listed company.

Lu Ersui, who was nominated by Xing Jiaxing at the same time as Lu Ersui, is also an executive of Jiangsu three friends. Since November 2015, she has served as party secretary, deputy general manager and supervisor of Jiangsu Ye Qin Garments Co., Ltd.

The two "executives" will soon be airborne La Natsu Bell, the future is still unknown. It can be seen clearly that no matter who is, La Natsu Bell's predicament is not two days in a day.

In 2019, JEANSWEST went bankrupt; fortune birds pulled out of the market; Daphne lost 348 million yuan in semi annual report; once A shares "sports brand first share", the loss of 765 million yuan -9.15 billion yuan... These old fashions are heading for their own destiny.

La Natsu Bell is not the only case, nor the most painful one, but its Waterloo is enough to cause deep thinking in the industry. What is the survival rule of the large-scale national clothing brand? Is "China Zara" a false proposition?