Men'S Faucet Red Bean Shares Terminate 679 Million Stores, And Bank Loans To Suppliers To Pay In Advance.

Jiangsu red bean industrial Limited by Share Ltd (hereinafter referred to as "red beans") announced in the evening of May 28th, in view of the great changes in the market environment in recent years, after fully demonstrated, the company intends to experience the 664 million 296 thousand and 600 yuan raised by the flagship store project under the wisdom of the whole channel SPA system construction project, and the total interest income received by the raised fund is 2662.83 Ten thousand yuan, investment and financial revenue amounted to 121 million 103 thousand and 700 yuan for permanent supplementary liquidity.

It is learned that the flagship store project under the red bean line will be invested in 679 million yuan, including 8 million 240 thousand yuan for equipment or hardware (including miscellaneous installation costs), and 671 million yuan for civil construction and housing purchase. The company originally planned to set up 10 flagship lines in 10 cities in Beijing, Shanghai, Nanjing, Wuxi, Xi'an, Chengdu, Wuhan, Zhengzhou, Shenyang, Ji'nan and so on. The total area of the store is 4400 square meters. The offline experience flagship store will be equipped with high-tech products such as robot attendants, 3D body feel fitting, intelligent volume equipment, holographic 3D life scene experience, etc., aiming to enhance customer experience and brand image through various new technologies and devices, and drive the overall sales volume of products.

However, under the original line, the location of flagship stores is relatively small and the location is difficult to implement. Red bean shares issued a notice in October 19, 2018. They decided to experience the location of the flagship store project under the line, and expand it to Beijing, Shanghai, Chongqing, Jiangsu, Shaanxi, Sichuan, Hubei, Henan, Liaoning, Shandong, Shandong, Shandong, convergence, and so on. Western, Shanxi, Hainan and other provinces and cities.

It was learned that the flagship store project under the red bean line was set up in 2015. In recent years, the market environment has changed greatly. The company has carried out a prudent assessment of the future development of the project. It is considered that it is difficult for the physical stores under the large scale to achieve the expected benefits. This is because: (1) the cost of property acquisition has risen sharply, and has increased significantly in the past 5 years. Qualitative analysis; (2) the development of electronic commerce platform has a great impact on the traditional line business, including the emergence of marketing methods such as live broadcast, so that consumers can interact with the merchandise and get real-time feedback to complete the purchase decision without having to go to the store in person. (3) at the beginning of 2020, the epidemic further accelerated the online shopping channel of consumers, and online penetration continued to rise, leading to a bigger challenge for offline stores.

At the same time, during the epidemic period, the men's chain stores under the line of red beans were basically in a state of suspension, and sales of chain stores fell. During this period, although the company responded positively, it took the form of live broadcast and WeChat applet to expand sales channels to make up for the loss of passenger flow under the line, but it was still greatly affected. Due to the fact that the sales of clothing in the spring haven't been basically realized, the suppliers' payment has not been recovered. The suppliers of autumn and winter goods must be put into operation in 5-6 months. Therefore, in order to ensure the normal listing of the company's commodities in August, some suppliers should pay part of the advance payment. Therefore, the company's demand for supplementary liquidity is more urgent.

Red beans share frankly, in line with the principle of prudent use of fund-raising funds, in order to reduce investment risk, the company intends to no longer use the fund-raising line to experience the flagship store project, and use the remaining proceeds from the project and the total interest income received from the fund-raising fund and the amount of investment and financial proceeds to be used for permanent supplementary liquidity. The 465 million yuan of the current fund will be used to return the bank. Loans and daily production and operation activities.

Public information shows that the red bean stock is a leading male fashion leader in China. It was founded in 1995 and listed on the main board of the Shanghai Stock Exchange in January 2001. As an early established domestic private apparel enterprise, the company has strong brand influence. The trademark "red bean" and "Hodo" have been identified as well-known trademarks in China.

The main business of the red bean stock is the red bean men's wear chain Monopoly and the red bean professional attire customization. Among them, the red bean men's clothing is positioned as a mass consumer group, and the price range is wide. The products include suits, shirts, T-Shirts, jackets, trousers, sweaters, down garments and so on. It can provide a one-stop shopping experience for the men of all sizes. The red bean professional clothing mainly tailor all kinds of middle and high class professional clothing for group customers, providing customers with a comprehensive customized product design, production and distribution. And after-sale ancillary services.

Judging from the production and operation mode of the red bean stock, men's business is mainly based on consignment sales, and the business mode of direct operation combined with affiliation is the main business area. The main sales area is two or three line cities, and image shops and intelligent stores are built in the first tier cities. On the Internet, with the vertical electricity supplier platform and the three party platforms such as vip.com, Jingdong, Tmall and Suning, the scale of revenue is fast. Expansion. Professional clothing business is mainly based on independent production, mainly through the core office to expand group customers. Group customers are mainly state-owned enterprises and government agencies, covering all sectors.

Earnings report shows that the controlling shareholder of Hong Kong Group is Hong Kong Group Limited. As of the first quarter of 2020, Hong Kong Group Limited held 1 billion 263 million shares of the company. At the same time, the company's top executives had a high educational background and rich experience in the industry to ensure a high level of decision-making and execution.

In 2019, the red bean stock continued to focus on the development of men's clothing business, taking the consumer as the core and informationization as the means to enhance the operation and management efficiency and promote long-term stable development. During the reporting period, the company achieved a business income of 2 billion 540 million yuan, an increase of 2.31% over the same period, of which 2 billion 380 million yuan for men's clothing business and 2.31% yuan for the shareholders of listed companies. The decrease was 18.14%, and the net profit attributable to shareholders of listed companies was 134 million yuan, down 19.58% from the same period last year.

During the reporting period, the gross profit margin of red bean reached 30.95%, up 2.68 percentage points from 2018. The company promotes the quality of products, and persists in the research and development way combining independent research and development with directional development. In conjunction with Italy designer FabioDelBianco, the series of products such as "Dengfeng series goose down garment" and "cross border hot spot IP" are developed. In recent years, the company has mainly launched the "light goose down" and "3D high elastic pants" and other ingenuity products to enhance the brand premium with technology and fashion sense.

Sub business: during the reporting period, the clothing and printing and dyeing of Hong Kong stock reached 2 billion 380 million yuan and 119 million yuan respectively, an increase of 1.70% and a decrease of 16.60% compared with the same period last year, and the income of grey cloth was 41 million 236 thousand and 200 yuan. The number of private brand red bean men's wear stores continued to expand, but affected by the weak clothing industry and the fierce competition in men's wear industry, the growth rate of Hodo menswear revenue has slowed down, and the income of OEM processing business has declined year by year.

According to different channels, during the reporting period, the operating income of the red bean online (private brand) and offline (including private brand direct, franchise and professional clothing group buying business, OEM processing clothing sales, etc.) were 260 million yuan and 2 billion 120 million yuan respectively, down 20.25% and 5.26% respectively.

Online, affected by the overall slowdown in the electricity supplier industry and fierce competition in the industry, Hong Kong share business income fell during the reporting period.

Offline sub channels, during the reporting period, the red beans Hodo men's direct wear and franchise affiliation revenues were 92 million 500 thousand and 400 yuan, 1 billion 394 million yuan, down 25.85%, up 3.51% over the same period last year. As of the end of 2019, the company had 52 direct outlets and 21.21% year-on-year decline. The growth rate was 4.09%, and the expansion of franchise channels drove revenue growth.

In addition, the earnings report also showed that as at the end of the reporting period, the accounts receivable of Hong Kong stock company was 356 million yuan, an increase of 6.63% over the same period last year, mainly due to the expansion of joint franchise channels and the increase in the company's support for franchisees. In 2019, the receivables turnover rate of the company was 7.37, down from 10.23 in the same period in 2018. At the end of 20, 3, the company receivables amounted to 337 million yuan, and the turnover rate of accounts receivable in the first quarter of 2020 was 1.92, which was slower than that in the first quarter of 2019.

In 2019, the impairment loss of red bean assets decreased by 16.57% to 22 million 450 thousand and 700 yuan, mainly due to a year-on-year decrease in bad debt. In the first quarter of 2020, the loss of Hong Kong beans assets decreased by 18.79% to 11 million 450 thousand and 500 yuan.

In 2019, the net cash flow of Hong Kong equity was 168 million yuan, compared with -3595.94 million in 2018, mainly due to the decrease in the deposit and tax paid by the company. In the first quarter of 2020, the net operating cash flow of the company was 83 million 587 thousand yuan and -9698.94 million in the first quarter of 2019.

Up to the end of the reporting period, there were 1376 stores under the Hong Kong stock chain, a net increase of 38 compared to 2018. In the first quarter of 2020, the next store of the red bean line decreased by 24 to 1352 at the end of 2019.

In the first quarter of 2020, Hong Kong shares realized 664 million yuan in business revenue, down 12.70% compared to the same period last year. The net profit attributable to shareholders of listed companies was 61 million yuan, an increase of 19.17% over the same period last year. The net profit attributable to shareholders of listed companies was 56 million yuan, up 32.21% over the same period last year.

Operating turnover:

By the end of 2019, the stock balance of Hong Kong stock was 209 million 228 thousand and 200 yuan, down 23.38% compared with the previous period. The period of inventory turnover was about 50 days, and the balance of accounts payable was 449 million 354 thousand and 500 yuan, down 16.28% compared with the previous period. The turnover date of the company accounts payable is about 102 days. At the end of the reporting period, the balance of accounts receivable of Hong Kong share was 355 million 735 thousand and 300 yuan, up 6.63% over the previous period. The company's accounts receivable turnover period is about 50 days.

Hong Kong shares said that the new crown pneumonia epidemic in early 2020 brought the test to the retail industry, and the company promptly adjusted its sales strategy to respond positively. With the theme of "three self six achievements year" as the theme of the work, we should focus on the brand building of light fashion men's clothing, further clarify the brand positioning, create competitive advantages, and effectively enhance the competitiveness of products.

First, light fashion as the theme, implement the overall design plan, cooperate with famous designers and design institutes at home and abroad to inject international design concepts into the brand, invite Italy designer FabioDelBianco as design consultant, and create more fashionable new products. The two is to focus on casual pants, shirts and other sub categories, from the R & D, production, marketing and other links to match, to break the market as a breakthrough to reshape the minds of consumers. The three is to cultivate strategic suppliers, create a strategy to promote product flexible supply chain, through the supplier collaboration platform, OTB automatic replenishment system, intelligent storage center to achieve precise product deployment.

In addition, the red bean stock also takes the user as the core. On the one hand, the company summarizes and improves the digital labels of members based on various channels, implements differentiated precise marketing, on the other hand, strengthens the whole channel drainage and creates customers, and carries out the "Tencent wisdom retail small program multiplication action", realizes the member fission through the social superiority, establishes the user community, and expands the effective user community. In line with the new retail transformation as the core, we actively optimize the channel structure, actively build smart experience stores, and enhance user stickiness by fun marketing. On the line, we will focus on promoting WeChat and super shopping guide system to enhance its operation capability, and expand sales channels in combination with fast hand, jitter, live broadcast, live broadcasting and live goods.

The industry believes that the overall consumption of the consumer and the impact of the epidemic, Hong Kong share apparel revenue fell year on year, but the company actively reformed production lines to produce protective products to ease the impact of the epidemic. Starting from the beginning of February this year, the red beans will be transformed into some production lines of suits, sportswear, and group pharmaceutical production level factories, which will be transformed into protective clothing, isolation clothing and mask production lines, so as to ease the shortage of anti epidemic materials. With the outbreak of outbreaks abroad, the company is also actively applying for export qualification to the EU and other places to better satisfy the supply of subsequent epidemic prevention products. Therefore, the revenue from the original clothing business has been reduced and profits have been increased through epidemic prevention materials. In the future, the red bean shares will also strengthen all channels operation, and cooperate with top European designers to launch joint names and strengthen brand publicity camp. Sales will continue to open joint stores, increase direct investment and increase clothing revenue. Judging from this, with the control of the epidemic situation, the performance of the main industry of the red bean clothing industry is expected to usher in marginal improvement. At the same time, the red bean group has rich clothing resources, and the future clothing related businesses such as home and underwear are expected to be injected into the listed companies.