Taiping Bird Has Applied To 6 Of Its Subsidiary Companies With Debts Exceeding 3 Billion To Apply For 2 Billion 700 Million Comprehensive Credit.

China's multi brand fashion group, Ningbo Taiping bird fashion dress Limited by Share Ltd (hereinafter referred to as "Taiping bird") announced today (March 3rd) that in order to meet the needs of the company's business development and business strategy, the company and its subsidiaries intend to apply to the bank for a comprehensive credit limit of not more than 2 billion 700 million yuan, and within the credit limit according to the credit bank ZARA. The corresponding guarantee is required. The above credit amount is not equal to the actual financing amount of the company. The actual amount of financing will be based on the actual amount of the company and the bank, and the credit form and purpose include, but not limited to, the business of circulating capital loans, project loans, bank acceptance bills and so on.

The board of directors of the Pacific bird agreed to request the shareholders' meeting to examine and approve the above comprehensive credit limits and authorize the chairman to decide on the relevant matters within the scope of the above credit limits and sign specific documents concerning loans, bank acceptance bills and other related businesses.

In addition, Taiping bird intends to provide a wholly owned subsidiary with a credit guarantee of not more than 2 billion 700 million yuan for bank financing, which is valid until the bill is approved by the general meeting of shareholders and until the same type of motion is approved by shareholders' general meeting next year.

Taiping bird said that the board of directors of the company believed that the guarantee provided to the wholly owned subsidiary of the company is to meet the daily operation needs of the company and its wholly owned subsidiary, which is conducive to the long-term development of the company. The guarantee Party is in good condition and has the ability to repay debts, and the guarantee risk is controllable, so that the interests of the company and shareholders will not be impaired.

As of March 3rd, the actual financing guarantee provided by Taiping bird for its subsidiaries amounted to 1 billion 288 million yuan, accounting for 36.39% of the audited net assets of the company in the latest issue (December 31, 2018).

Notice shows that the guarantor is Ningbo Taiping bird fashion men's Clothing Co., Ltd., Ningbo Taiping Bird Network Technology Co., Ltd., Ningbo Taiping bird Agel Ecommerce Ltd, Ningbo Lok Ting fashion dress Co., Ltd., Ningbo Taiping bird men's Clothing Marketing Co., Ltd., Ningbo Taiping bird clothing manufacturing Co., Ltd.

Note: the above data are not audited.

The following guarantee amount includes the new guarantee and the extension or renewal of the original guarantee, totaling 2 billion 700 million yuan, accounting for 76.29% of the company's latest audit (net) assets in the latest issue (December 31, 2018).

Note: the guarantor also includes the newly established wholly-owned subsidiary after the adoption of this motion. In the total guarantee amount, the foregoing guarantee amount can be dispensed with each other.

It is reported that the comprehensive credit is defined as a comprehensive evaluation of the financial situation and credit risk of the comprehensive credit customers. The commercial bank determines the credit risk management system that can and is willing to bear the total amount of risk, that is, the highest comprehensive credit line and centralized and unified control.

Credit is a kind of credit affirmation given by a unit or individual to a person or an enterprise. For example, a bank grants the loan amount within a certain period according to the credit and economic condition of the borrower. In the period and amount of the credit, the borrower can borrow the loan according to his own demand for funds and do not have to go through the cumbersome loan approval procedures every time, and he can reduce interest expenses as much as possible.

The object of comprehensive credit can only be a legal person. The form of comprehensive credit is a package of credit, that is, loans, packing loans, import bills, export bills, discounts, letters of credit, letters of guarantee, acceptance bills and other forms of credit should be placed in the upper limit of the customer's credit limit, so as to centrally manage and effectively control credit risks. The implementation of comprehensive credit is not only getting credit support from banks, but also solving financial difficulties and reducing capital pressure. For banks, they strive for and stabilize high-quality customers, promote the development of various credit businesses, enhance their competitiveness, and effectively control credit risks. At the same time, the implementation of comprehensive credit simplifies the procedures of credit granting. As long as the credit line is comprehensive, customers can apply for credit application to banks at any time. Banks can make loans immediately, simplify the procedures of internal examination and approval, improve the efficiency of work, achieve a contract and give credit several times. Therefore, comprehensive credit has been widely adopted by banks.

According to public information, the Taiping bird group was founded in 1989. The "Taiping bird" brand was founded in 1995. After 20 years of development, Taiping bird group has developed from a single garment enterprise to a comprehensive industry group with clothing brand's creative research and development, fashion design and marketing as the core of the industry.

According to the financial report, as of the three quarterly report in 2019, Taiping bird achieved a business income of 5 billion 3 million yuan, and its net profit attributable to shareholders of listed companies was 207 million yuan.

Thanks to the growth of sales growth and the strengthening of inventory management, the net inventory of Taiping bird stock was 2 billion 124 million yuan at the end of the three quarter of 2019, down 3.09% from the end of the three quarter of last year.

Taiping bird estimated that net profit attributable to shareholders of listed companies would be around 550 million yuan in 2019, which is expected to decrease by about 4% compared with the same period of last year. It is estimated that the net profit after deducting non recurring gains and losses attributable to shareholders of Listed Companies in the 2019 year is about 350 million yuan, which is expected to decrease by 11% compared with the same period last year.

Taiping bird said that the main reasons for the change in the company's performance during the reporting period were:

(1) the total retail sales and operating revenue of the company continued to grow, but the growth rate slowed down compared with the previous year. The company continued to optimize the layout of the channel during the current period. The number of stores at the end of the year was around 4500, of which more than 1600 were Direct stores, the number increased from the beginning of the year, and the lease increased accordingly. At the same time, the company increased the key inputs such as brand building, resulting in the current operating profit. Year-on-year decrease.

(two) the company optimizes the liquidation of some of the long-term losses of its subsidiaries this year, and the enterprise income tax that has not been recognized in the previous year is recognized in the current period, and the non recurring gains and losses have increased.

Huaxi Securities analyst Tang Shuang Shuang said earlier that since 2019, the growth of apparel terminal retail sales showed a cliff style downward trend. In 1-9 months, the clothing sales volume above the limit increased by 3% compared to the same period last year, representing a decrease of 6.7pct over the same period last year. In the monthly view, the growth rate in March and August was 6.3% and 5.6% respectively, but the growth rate in other months was not more than 5%, and the growth rate in April was even lower. Sales improved slightly in 2019, but showed a weak price increase:

Tang Shuangshuang analysis, this round of terminal downturn downturn cycle did not bring inventory backlog: since 2018, inventories showed a downward trend year-on-year, as of the end of September 2019, textile and clothing, apparel industry inventory of 190 billion 390 million yuan, down 0.4% compared to the same period, of which finished goods inventory total 96 billion 620 million yuan, accounting for 51%, down 7.14%. The reason is that we analyzed that the second round of the 16 quarter of the first half of this round of consumption recovery in the first half of the year came mainly from the wealth effect of the monetization of the shed reform, while the clothing companies did not carry out large-scale opening and pressing of goods, and the dealers were also cautious in stocking. Since the second half of 2018, the clothing companies have continued to adjust their stores and do not have many stores, and have dealt with the over season inventory in a timely manner.

At present, the flow of shops and shopping malls is decreasing, and shopping centers and outlets are rising. According to win win data, as of the first half of 2019, the volume of shopping center stores has reached 366 million 270 thousand square meters, an increase of 13.75% over the same period last year. The number of shopping center outlets has reached 3933, an increase of 14.46% over the same period last year. The two have maintained double-digit growth for 9 consecutive years. According to the statistics up to August 1, 2019, the number of new shopping centers will increase to 23.7% in 2019, and the new area will increase to 8382 square meters, with an increase of 25.27%. 955.

From the perspective of enterprises, many brands such as Taiping bird, Be Meleven, Hai Lan's home, Semir, Anta and so on have all adjusted their channels to increase the strength of shopping centers and Oteri J's entry. However, the main purpose of direct marketing is to increase revenue growth in the short term, but the profit side is short term pressure.

The first textile network reporter learned from the financial reports that as of the first three quarters of 2019, there were 346 new stores and 572 franchisees in Taiping bird store, 237 outlets, 237 franchisees, 10 stores, and -156 shops. By the end of the reporting period, the number of offline stores was 4438, of which 1625 were direct stores, 2807 were franchises, and 6 were affiliated stores.

Tang Shuang Shuang said frankly, influenced by the terminal downturn, coupled with the economic slowdown, the impact of electricity providers and other problems have not yet been broken, the men's clothing industry is also facing several aspects of competition pressure, one is the diversion of sports and fashion leisure; the two is brand aging, consumer groups are personalized tide brand diversion; three, the competition pressure on the industry is increasing. Under this trend, men's clothing brands have been reformed in order to revive. At present, Menswear brand PE is only 14x, located in the bottom valuation area, but the same store growth has not improved significantly.

Guang Fa Securities researcher Mi Hanjie recently said that since 2019, Taiping bird has actively adjusted and optimized its stores, converting some of the poor quality franchised stores into direct companies to enhance the quality and efficiency of the stores. 2019 the first three quarters of the company's inventory turnover days were 236 days, down 7 days compared with that of the previous year, and accounts receivable turnover rate was 29 days, an increase of 3 days compared with the same period last year. According to performance forecast data, the company's 2019 quarter, two quarter, three quarter and fourth quarter net profit growth rate is -34.90%, -29.24%, -12.26%, 18.69%, showing a quarterly improvement trend.