Debt 15 Billion 400 Million But Strong Solvency. Charles Heung'S Endorsement Of Hai Lan'S Home Becomes A Homemade Man'S Suit.

The National Men's wear brand, Hai Lan's home Limited by Share Ltd (hereinafter referred to as "Hai Lan Jia") has released a 2020 father's day themed blockbuster, "father is the child's eternal Idol". In the father's Day blockbuster at Hai Lan's home, young Kung Fu actor Jacky Heung appeared. In order to love son, Charles Heung, a 72 year old film industry leader, has instructed his son Jacky Heung Kung Fu in the advertising video. He even performed martial arts together, and linked up with Kung Fu for generations to feel the sense of belonging to the country and the nation.

"Father is the idol of children forever". This is not only the track to father and son, but also the pattern of many Chinese sons and daughters. The story of Hai Lan's family is their story, and it is the story of father and son all over the world.

It is reported that since 2014, the story of father's day, Hai Lan's home is seven years ago. The brand of Hai Lan's home has been upgraded with Chinese consumers. With step by step change, efforts have been made to break the stereotype of men's clothing and gradually create a new image for Chinese men's wear.

The first textile network reporter learned here that the main brand of Hai Lan's brand is Hai Lan's home, which displays the consumption experience of the "Hai Lan's home - men's Wardrobe" through the display of fashionable and full store stores. Through advertising and celebrity endorsement, the integrated marketing mode has established a distinct brand image among consumers, and its performance has been steadily growing. Become the leader of men's wear industry. In 2019, the company changed its brand marketing strategy, and co operated with the popular IP, using the diversified marketing strategies, such as media and short videos, to enhance brand awareness. In the same period, the company's popular IP includes the classic animation "the havoc of heaven", the movie "China captain" and "World of Warcraft" and other Blizzard games. At the same time, it co operates with the magazine "China Geography" to create brand image, sponsoring the variety new conference, the strongest brain and the wonderful flower, attracting the attention of young consumer groups and expanding the brand radiation crowd.

In 2019, the brand of "Hai Lan Jia" was selected as "the 100 most valuable Chinese brands in BrandZ2019", CCTV's "big country brand", "new China's establishment 70th anniversary 70 brand" and "2019 most valuable Chinese brand", and the company listed 5 consecutive years, "fortune" China 500 strong, and the main brand of the company, "Hai Lan's home", still has strong brand competitive advantage.

As a long-term deep tillage men's clothing industry, the leading brand, Hai Lan home, was established in 2002, and achieved rapid expansion of the channel through the business mode of suppliers, Hai Lan's home and dealers' interests. In 2014, the brand of "men's Wardrobe" brand went deep into the heart of people, and was firmly entrenched in the Chinese men's wear industry. Since 2017, Hai Lan's family has been expanding the sub brands of black whale and extending its business to the whole category and multi brands. It has expanded from men's clothing and formal dress to women's clothing, children's clothing and household products, and has made the industrial chain strategic alliance.

Public information shows that Hai Lan's home is mainly engaged in the chain operation of brand clothing and the production and sale of professional clothing. The brand management of the company is mainly about the operation and management of the brand of Hai Lan home brand in brand management, supply chain management and marketing network management. Clothing production is mainly the production and sale of its own brand San Keno; other businesses mainly include materials sales and leasing business.

Hai Lan's home adopts a multi brand operation strategy, which includes the market of men's clothing, women's wear, children's clothing and living home market. It mainly owns Hai Lan's home, San keno, black whale, OVV, Ying Shi and other brands, mainly based on Hai Lan's home and San Keno. In July 2019, the company controlled Ying Ying baby, added Ying's brand, the main necessity of 0-6 year old infant's necessities, and realized the differentiated layout of the popular children's wear brand and high-end baby children's clothing brand. In September of the same year, because of the adjustment of many brands, the overall performance of the rabbit was not as good as expected, so the company transferred the 81% share of the beloved rabbit, and no longer controls the rabbit.

The company commissioned the credit rating agency Dagong international credit rating Company Limited (hereinafter referred to as "Dagong international") issued a tracking credit rating of the "Hai Lan home Limited by Share Ltd Switching Company bond" (bond short: Hai Lan convertible bond, bond Code: 110045) released by the company and the company. In 2019, Hai Lan's real estate rating was released. Current business income increased 15.09% year-on-year, gross profit increased 11.20%, gross margin 39.46%, a slight decrease of 1.38 percentage points.

According to the sub sector, in 2019, the brand revenue and gross profit increased by 15.68% and 11.99%, respectively, due to the increase in the brand revenue of the haerang family brand and the impact of the new Ying's baby brand, which is still the main source of company revenue and gross profit. The gross profit margin decreased by 1.29 percentage points year-on-year, mainly in the sea. The sales of brands and the gross profit margins were negative, and the clothing revenue and gross profit increased by 2.24% and 3.58% respectively, which is still an important supplement to the company's revenue and profits. The gross profit margin increased by 0.65 percentage points compared with the same period last year. The income of other businesses and gross profit increased by 227 million yuan and 28 million yuan respectively, mainly due to the substantial increase in material sales. The gross profit margin increased by 3.57 percentage points year-on-year.

In late January 2020, the outbreak of the outbreak of Hay Lan's home line and the sharp reduction of passenger traffic volume had a certain impact on the company's first quarter sales. In the 1-3 month of 2020, Haolan's family business income decreased by 36.80% compared with the same period last year, and gross profit fell by 50% compared with the same period last year, and the gross profit margin decreased by 9.11 percentage points compared with the same period last year. In the same period, the brand revenue and gross profit decreased by 36.60% and 48.86% respectively, and the gross profit margin decreased by 8.40 percentage points compared with the same period last year. The income and gross profit of garment production decreased by 46.25% and 48.85% compared with that of the previous year, and the gross profit margin decreased by 4.66 percentage points compared with that of the previous year.

From the point of view of brand sales revenue and gross profit margin, in 2019, Harean's brand sales revenue growth contributed greatly to the growth of the company's main business revenue, and the gross profit margin remained at a high level. Meanwhile, because AI rabbit only merged with the 1-8 month data in 2019, sales revenue and gross margin decreased a lot. The data of sea one are reclassified to Harean's home series, and the gross margin of other brands is negative. In the 1-3 month of 2020, the income and gross profit margin of Haolan's home and San Keno declined year by year, while other brand income and gross profit income increased.

In 2019, when the new brand started to take shape and the epidemic hit, Hai Lan's home raised the strategy of "focusing on the main brand". The total number of stores under the line reached 7254, covering more than 80% of the counties and cities, and further expanding to overseas markets in Southeast Asia. In 2019, the company achieved a revenue of 29 billion 170 million yuan, an increase of 15.09% and a leading revenue scale.

According to the results of the financial report, the sales channel of Hai Lan's home is offline and online sales, and offline sales are direct, franchise and joint mode. The channel is mainly distributed in pedestrian street, department store and shopping center of the county's core business circle, and stores are opened in Malaysia, Singapore, Thailand and Vietnam. After entering the mainstream open platform such as Tmall, Jingdong, vip.com and WeChat applet, sales can be realized.

Under the online channel management, Hai Lan's home has unified standardized management for all stores, including unified image planning, supply, guidance price, business mode, service specification, etc., so as to achieve a unified management of high quality marketing network, and the sales revenue under the line is still the main source of income of Hai Lan's home. In 2019, the income of Hai Lan's home rose 14.09%, an increase of 93.81% in the main business income and a slight decrease in gross profit margin. In the 1-3 month of 2020, the sales revenue of Haolan's family line dropped by 39.87% compared to the same period last year, and the gross profit margin dropped by 8.86 percentage points.

The products of Hai Lan's home are complete, including T-shirts, trousers, shirts, knitwear, down garments, jackets and Western-style clothes. From the perspective of product sales, sales of four categories of T-shirts, trousers, jackets and Western-style clothes all increased in 2019, while sales of other major categories decreased slightly. The sales volume of other products, including skirts, shoes and socks, clothing accessories and so on, was greatly increased by the combination of Ying Ying children. From the point of view of the average selling price of products, except for a slight decrease in the average selling price of suits and other products, the rest of the major categories of products have increased, and the prices of the products of the company are relatively stable.

From the sales situation of Hai Lan's home area, in 2019, the sales volume of the company was still mainly in East China, accounting for 39.62%, a slight decrease; the proportion of sales in Central South, North China and Northeast China increased slightly; the southwest region decreased slightly, and the proportion of Northwest China was relatively low and slightly down; at present, the proportion of overseas business volume of the company was still very low, and it increased slightly in 2019.

In recent years, Hai Lan's home has been actively infiltrating and radiating to the first and second tier cities on the basis of consolidating the coverage of the three or four tier city stores, while increasing the expansion of shopping center stores and constantly optimizing the layout of store network marketing. But at this stage, the layout of Hai Lan's home is still dominated by three or four line cities. The main consumption group of the company's products is also concentrated in three or four line cities. The consumption contribution of the first and second tier cities is relatively low. The number of stores in the first and second tier cities needs to be improved, and the layout of the city needs to be further improved. At the same time, the products of Hai Lan home store are mainly men's clothing, women's clothing and other products are lower in the main business income, the audience consumption is not balanced, and the product structure needs to be improved. On the whole, the imbalance between urban layout and audience consumption is not conducive to the continuous improvement of company competitiveness.

From the balance between debt repayment sources and liabilities:

In 2019, the business revenue of Hai Lan home continued to grow, while the cost of the company increased. The company's profit scale declined, the operating net cash flow increased significantly, the financing channels were cleared, the credit line was larger, the assets size of the company decreased slightly, and the current assets were still the main ones, but the size of the company's non returnable inventory was still large. If the inventory age of the stock in the next 2 years or more continued to increase, In the first quarter of 2020, the profit level and operating net cash flow of Hai Lan home were affected.

(1) the source of debt repayment

1, profit

In 2019, Haolan's home business revenue and gross profit grew. At the same time, the number of Direct stores increased and the merger of the children was increased. During the period, the cost of the company increased significantly, and the cost rate was higher. The profit scale declined and the profitability declined slightly. In the first quarter of 2020, the scale of the company's operating income and profits decreased.

In 2019, Hay Lan's family revenue increased by 21 billion 970 million yuan, a year-on-year increase of 15.09% and a gross margin of 39.46%, down 1.38 percentage points from a year ago.

In terms of cost, the cost of Hai Lan home increased by 37.56% in 2019, and the cost rate increased by 3.01 percentage points over the same period. During the same period, the number of Direct stores increased and the brand of children's clothing was affected. The staff salaries, rental and property management fees, decoration fees and miscellaneous fees increased. The sales expenses increased by 37.07% over the same period last year. With the increase of employees' salaries and the increase of depreciation and amortization expenses, the management fees increased by 36.22% over the same period, and the scale of R & D expenses and financial expenses were relatively small, of which the company's wealth was in 2019. The transfer of expenses from income to expenditure is mainly due to the increase in interest amortization of convertible bonds in 2019, which resulted in an increase of 67 million yuan in interest expenses.

In terms of non recurring gains and losses, in 2019, the investment income of Hai Lan home was 76 million yuan, down 91 million yuan compared with the same period, due to the first half of the year, Ying baby and SeanJohnHongkongCo.. Limited net profit loss, the company's new equity investment method confirmed the long-term equity investment loss of 108 million yuan, asset impairment loss of 422 million yuan, are the loss of inventory price, an increase of 38 million yuan, mainly due to the increase of stock in the company's non returnable commodities for more than 2 years, and the extra business income was 45 million yuan, an increase of 22 million yuan compared with the previous year. With an increase of 19 million yuan, operating expenses decreased by 4 million yuan compared with the same period last year.

Affected by the increase in the cost of the period, the operating profit, gross profit and net profit of Hai Lan home in 2019 were 4 billion 179 million yuan, 4 billion 224 million yuan and 3 billion 168 million yuan respectively, down by 8.25%, 7.72% and 8.34% respectively. 14.92% and 22.85%, respectively, down 0.57 percentage points and 3.54 percentage points year-on-year, and the company's profitability declined slightly.

In 2020, 1-3 months after the epidemic, Harean's household income, gross profit and gross profit margin declined. Compared with the previous year, the cost of Harean's home was reduced by 14.05%, but the annual cost rate increased by 5.11 percentage points compared with the same period. The sales cost decreased by 8.03% compared with the same period last year, and the management cost decreased by 31.61% compared with the same period last year. The cost fell by 15.83% compared to the same period last year, and the financial cost was converted from income to expenditure.

In terms of non recurring gains and losses, in 2020 1-3, the investment income of Hai Lan home was 3 million yuan, which turned from loss to profit from the same period last year, and the loss of assets impairment was 168 million yuan, which was still a loss of inventory price, an increase of 17 million yuan compared with the same period last year. The net balance of business income and expenditure was 6 million yuan, a decrease of 5 million yuan compared with the same period last year.

On the scale of profit, in 2020 1-3, the operating profit, gross profit and net profit of Hai Lan's home were 382 million yuan, 387 million yuan and 287 million yuan respectively, all of which fell sharply compared with the same period last year.

2. Cash flow

In 2019, the operating net cash flow of Hai Lan's home business increased substantially compared with the same period last year, and the ability to protect interest and debt increased. The net cash flow of investment was still a net outflow, and the net outflow size had declined. In the first quarter of 2020, the net cash flow protection rate of interest and current liabilities decreased, but it remained at a high level.

In 2019, the operating net cash flow of Hai Lan's home business increased by 43.11% over the same period last year, mainly due to the increase in the sales return. The net cash flow of investment was still a net outflow, but the net outflow scale decreased by 67.04% compared with the same period last year. This is mainly due to the decrease in the investment in liquid financial products, the decrease in the available financial assets and the decrease in cash in the purchase and construction of fixed assets, intangible assets and other long-term assets. Affected by the increase of operating net cash flow, the interest guarantee ratio of operating net cash flow is 22.14 times, and net operating cash is 27.29% compared with current liabilities. In addition, as at the end of 2019, the company's construction project is south district and auxiliary warehouse of the garment industry. The total investment is estimated at 1 billion 484 million yuan, and the total investment of the project is 1 billion 346 million yuan. It still needs to invest 138 million yuan in a small scale.

In 2020 1-3, the cash received from Hai Lan's home sales and labor services decreased by 45.65% compared with the same period last year. The net cash flow was 956 million yuan, down 21.78% compared with the same period last year. The net cash flow from investment to net outflow was mainly caused by the decrease of cash in investment and the increase in entrusted financial expenditure. At the same time, the net cash flow of operating net decreased interest and current liabilities, but remained at a high level.

3, debt income

Since 2019, Hai Lan's home has no new issuance and loans. Therefore, the net cash flow of raising funds is a net outflow, and the scale of bank credit is relatively large. At the same time, as a A share listed company, the financing channels are smooth.

In 2019, the net cash flow of Hai Lan's home was -32.03 billion yuan, which turned from net inflow to net outflow compared with the same period last year. First, the company did not issue bonds or new loans this year, two of which was due to repay 494 million yuan of long-term borrowings this year, and three was due to the company's dividend distribution of 1 billion 722 million yuan and the company's repurchase share cash expenditure of 885 million yuan. In 2020 1-3, the net cash flow of fund-raising was still a net outflow, mainly due to the repurchase of shares, and the net outflow increased by 14 million yuan over the same period last year.

Hai Lan's home financing channel is smooth, and has maintained good cooperation with many banks. As at the end of 3 2020, the company received 4 billion 300 million yuan of bank credit, and none of them had been used. As a A share listed company, the company has strong direct financing capability. Overall, the company's financing channels are smooth.

4, external support

The external support of Hai Lan's home is mainly government subsidies, but it is small in scale and contributes less to debt repayment sources.

In 2019, other revenue from Hai Lan's family was subsidized by the government. The government subsidy received was 35 million yuan, a decrease of 41 million yuan compared with the same period. In the 1-3 months of 2020, the other income of the company was 78 thousand and 900 yuan, which was small in scale and contributed less to debt repayment sources.

5. Realizable assets

Since 2019, the assets of Hai Lan home have fluctuated slightly. Asset structure is still dominated by liquid assets, and the scale of money and inventory is still large. If the inventory of inventory in the next 2 years or more continues to increase, it will be faced with a certain risk of falling prices. At the same time, because of the merger of Ying's children, the intangible assets and goodwill of Hai Lan's home will fluctuate greatly.

By the end of 2019, the total assets of Hai Lan home had declined slightly, and the asset structure was still dominated by liquid assets. As at the end of 3 in 2020, the total assets of the company amounted to 29 billion 459 million yuan, up 1.88% from the end of 2019, with little change, including 21 billion 441 million yuan of liquid assets, a 2.49% increase over the end of 2019.

The flow assets of Hai Lan's family are mainly composed of money and stock. At the end of 2019, the company's Monetary Fund was 10 billion 22 million yuan, down 4.79% from the same period last year, accounting for 34.66% of the total assets, and the scale is still larger. The restricted monetary fund is 1 billion 873 million yuan, mainly for issuing bank acceptance bills, letter of guarantee and letter of credit, the proportion of total monetary funds is 18.69%, and the scale of money available by the company is still larger.

At the end of 2019, inventories were 9 billion 44 million yuan, down 4.53% from the same period last year, with little change, accounting for 31.28% of total assets. Hai Lan's home stock includes clothing chain brand inventory of 8 billion 410 million yuan, raw and auxiliary materials and professional clothing brand inventory of 634 million yuan, of which clothing chain brand inventory can be returned goods account value of 4 billion 677 million yuan, non returnable goods book value of 3 billion 733 million yuan, accounting for 55.61% of clothing chain brand and 44.39%. In 2019, the company set aside 66 million yuan for the 1-2 years' inventory price depreciation, which was mainly due to the depreciation of other chain brands, which was reduced by 23 million yuan compared with the same period last year. It was 453 million yuan for the inventory depreciation of goods over 2 years old, an increase of 105 million yuan compared with the same period last year, mainly due to an increase of 190 million yuan over 2 years old. On the whole, Hai Lan's home can not be returned to stock with a large scale. If there is a continuous increase in inventory age in the next 2 years, it will face some risk of falling price.

At the end of 3 2020, the money of Hai Lan's home was 10 billion 404 million yuan, an increase of 3.81% compared with the end of 2019, and its inventory was 8 billion 839 million yuan, which was 2.27% lower than that at the end of 2019.

The company's illiquid assets consist mainly of fixed assets, intangible assets, goodwill, investment real estate and deferred income tax assets. At the end of 2019, the company's fixed assets amounted to 4 billion yuan, down 0.88% from the same period last year, with little change, including 3 billion 42 million yuan of housing buildings. At the same time, the company's intangible assets increased by 417 million yuan over the same period because of the merger of the British girls. The increase was mainly in the new trademark rights of 434 million yuan and goodwill 914 million yuan, a substantial increase of 801 million yuan compared with the same period last year. There is a certain risk of impairment of goodwill, investment property 793 million yuan, an increase of 5.67% over the same period, and deferred income tax assets of 495 million yuan, unchanged from the same period last year. At the end of 3 2020, the company's deferred income tax assets were 600 million yuan, an increase of 21.33% over the end of 2019.

From the perspective of asset constraints, as at the end of 2019, the restricted assets of Hai Lan's home were all monetary funds, with a restricted scale of 1 billion 873 million yuan, accounting for 6.48% of total assets, and 13.52% of net assets, with a limited scale. By the end of 3 2020, Hai Lan group had 21.49% of the total Pledged Shares, accounting for 53.79% of its shares.

From the perspective of asset turnover efficiency, in 2019, the inventory turnover days of Hai Lan home and the turnover days of accounts receivable were 6 and 250.62 days and 11.95 days respectively. The turnover efficiency of inventory increased and the turnover efficiency of accounts receivable was basically flat. In the 1-3 month of 2020, the days of inventory turnover and accounts receivable turnover were 319.16 days and 19.44 days respectively, and the turnover efficiency decreased. Accounts receivable recovery rate is faster, mainly by the franchisee entrusted by the franchisee to manage franchisees. The stock in the franchisee belongs to the company. After the product is sold, the company and the franchisee make regular revenue sharing according to the franchise contract, and the receivable account of the company is smaller; the accounts receivable of the company are mainly accounts receivable generated by San Keno custom service business. In view of the fact that San don's custom services account for a small proportion of the company's revenue, the amount of accounts receivable is smaller and accounts receivable turnover has always been at a higher level.

Generally speaking, in 2019, the business revenue of Hai Lan home continued to grow, while the cost of the period increased, the company's profit scale declined, the operating net cash flow increased significantly, the financing channels were cleared, the credit line was larger, the asset size of the company decreased slightly at the end of the year, and the liquidity assets were still the main ones, but the stock size of the company's non returnable stock was still large, and if the inventory was in store in the next 2 years or more, In the first quarter of 2020, the company's profit level and operating net cash flow all declined.

In 2019, the number of stores in Hai Lan home continued to increase, and the scale of operating income continued to grow. At the same time, because of the increase in the number of Direct stores and the acquisition of children's clothing brands, the cost of the company increased during the period, and the cost rate was higher during the period, resulting in a decrease in the profit scale. The company's operating net cash flow increased substantially, and the interest and debt protection capabilities were enhanced. At the same time, the bank's credit line is relatively large, and at the same time, the assets at the end of the company decrease slightly, and the asset structure is still dominated by current assets, and the monetary fund and inventory are still large. Due to the large scale of the non returnable stock, if the stock in the next 2 years or more continues to increase, it will be faced with a certain risk of falling price. Great changes. Affected by the epidemic in the first quarter of 2020, the company's operating income, profit scale and operating net cash flow decreased considerably.

(two) debt and capital structure

Since 2019, the scale of the liabilities of Hai Lan home has decreased, and current liabilities are still the main ones. The business operation mode of the company makes the scale of accounts payable larger.

At the end of 2019, the total debt scale of Hai Lan home declined, and the debt structure was still dominated by current liabilities. At the end of 3 2020, the total liabilities of the company amounted to 15 billion 460 million yuan, representing an increase of 2.69% over the end of 2019, with little change in which the current liabilities were 12 billion 458 million yuan, representing a 3.56% increase over the end of 2019.

The current liabilities of Hai Lan's home mainly consist of accounts payable, other payable, bills payable, prepaid and payable taxes. The company purchases products from suppliers on credit, which makes the scale of accounts payable continue to be larger, and it is also the reason why the company has a higher asset liability ratio. At the end of 2019, the company's accounts payable amounted to 5 billion 899 million yuan, a slight increase of 2.27% over the same period last year, of which 5 billion 646 million yuan was payable for operating procurement, accounting for 95.71% of the accounts receivable, and accounts payable 5 billion 620 million yuan, accounting for 95.27%. Other payables amounted to 1 billion 970 million yuan, accounting for 97.75% of the total amount of other payables, and 1 billion 820 million yuan of notes payable, all of which were reduced by 19.39% from the bank's acceptance bills. The advance payment was 816 million yuan, down 38.21% compared to the same period last year, mainly due to a reduction of 512 million yuan in advance payment, and a tax fee of 634 million yuan, a decrease of 37.40% over the same period. 100 million yuan.

At the end of 3 2020, other accounts payable at Hai Lan home were 2 billion 765 million yuan, an increase of 37.21% over the end of 2019, resulting in an increase in the amount of the franchisees. The notes payable were 1 billion 633 million yuan, down 10.27% from the end of 2019; the advance payment was 658 million yuan, which was 19.39% lower than that at the end of 2019 years, mainly due to the decrease in the amount of advance payment.

The illiquid liability of Hai Lan home is mainly composed of bonds payable, long-term payment and deferred income tax liabilities. At the end of 2019, bonds payable by the company were 2 billion 373 million yuan, an increase of 3.85% over the same period last year, with little change. The long-term margin payable of 372 million yuan, which was paid by franchisees, decreased by 37.62% compared to the same period last year, mainly due to the reclassification of 254 million yuan of non current liabilities due within one year. The deferred tax liabilities were 270 million yuan, up 18.60% over the same period. As at the end of 3 in 2020, the company's long-term payment was 329 million yuan, which was 11.52% lower than the end of 2019.

Since 2019, the scale of interest bearing debts of Hai Lan home has decreased slightly. Interest rate debt is still the main concern. The scale and proportion of short-term interest bearing debt have declined. The scale of the company's Monetary Fund is large, which can cover the scale of the company's interest bearing debt, and the debt paying pressure of the company is small.

Since 2019, the scale of interest bearing interest of Hai Lan home has declined slightly, and the interest bearing debt structure is still dominated by long-term interest bearing debt, and the term structure is more reasonable. According to the composition of interest bearing debt, short-term interest bearing debt is mainly notes payable, and long-term interest bearing debt is mainly convertible bonds. By the end of 2019, Hai Lan's home had a total interest rate of 4 billion 193 million yuan, and the 7 collection fund was mainly for the company's mobile phone payment and other receivables. Its retail income was fully remitted to the Hai Lan home related account. After the deduction of the receipts from the franchised stores, Hai Lan's household account was reduced to 16.80%, compared with 16.80%. Notes payable, the short-term interest bearing debt scale decreased by 19.50% compared with the same period last year, the long-term interest bearing debt scale was 2 billion 373 million yuan, a year-on-year decrease of 14.60%, mainly due to the repayment of long-term loans. Over the same period, the monetary fund of Hai Lan home was deducted from the restricted part and the business margin of the franchisee. The scale of the freely available Monetary Fund was 7 billion 523 million yuan, which was 1.79 times the total interest bearing debt scale. As at the end of 3 2020, the interest rate of Hai Lan's home fell slightly.

According to the distribution of the term structure of interest bearing debt, as at the end of 3 2020, the interest bearing debt of Hai Lan home was expired in 1 years and 4 years later. The short-term interest bearing debt scale was smaller, and the short-term debt paying pressure of the company was smaller.

As at the end of 3 2020, Hai Lan's home had no external guarantee.

In 2019, the interests of minority shareholders in Hai Lan's home business increased, and owners' equity continued to grow.

At the end of 2019, the owner's equity of Hai Lan home was 13 billion 861 million yuan, up 5.85% from the same period last year. In the same period, the share capital of the company was 1 billion 95 million yuan, down 6.23% compared with the same period last year, and the main companies repurchased 73 million shares. The capital surplus was 1 billion 452 million yuan, down 28.57% from the same period last year, mainly because the difference between the face value of the repurchase shares and the actual repurchase was 595 million yuan, which reduced capital accumulation. The surplus surplus was 1 billion 740 million yuan, up 16.01% over the same period, mainly due to the withdrawal of statutory surplus reserves. The profit was 9 billion 7 million yuan, an increase of 17.48% compared with the same period last year, mainly due to the carry over of profits this year. The minority shareholders' equity was 260 million yuan, an increase of 123 million yuan compared with the same period last year, mainly due to the company's holding of the English baby girl and the increase of 33.76% minority shareholders. At the end of 3 2020, the company's owner's equity was 14 billion yuan, an increase of 1% over the same period last year, with little change. The share capital was still 1 billion 95 million yuan.

Due to the long-term debt payable by the Hai Lan family, the short term interest bearing debt is excluded from the long-term payable part within 1 years.

In 2019, the business revenue of Hai Lan home has increased, but the profit level has been reduced due to the increase in the cost of the period. However, the coverage of interest has remained at a very high level, the financing channels are diverse and smooth, liquidity solvency is very strong, and cash assets and inventory in the realizable assets are large, and in general, the solvency of the company is very strong.

In 2019, the business revenue of Hai Lan's home business increased, but it was affected by the increase in the cost of the period. The profit scale declined, and the EBITDA interest protection multiplier was 31.73 times, although it declined, but it remained at a very high level.

The source of liquidity repayment of Hai Lan's home mainly includes profit, operating cash flow and debt income. In 2019, the company's operating cash flow interest protection multiple was 22.14 times, a slight decrease compared to the same period last year, but the coverage was still very high. The operating net cash flow was 27.79% higher than the current liabilities, an increase of 8.69 percentage points compared with that of the previous year, and the level of protection has been enhanced. Besides, the company's financing channels are diverse and smooth, and liquidity solvency is very strong.

The source of solvency of Hai Lan's home is mainly realizable assets, mainly current assets, and large scale of monetary capital and inventory. Because of the holding of Ying Shi baby this year, the company's intangible assets and goodwill have changed greatly. At the end of 2019, the liquidity ratio and the quick ratio of the company were 1.74 times and 0.99 times respectively. The protection level of current assets and quick assets to current liabilities increased slightly, the debt capital ratio was 23.23%, and the asset liability ratio was 52.06%, down 4.57 percentage points and 3.68 percentage points respectively, and the debt burden was lightened. On the whole, the solvency of the company is very strong.

Solvency

On the whole, Hai Lan's home has strong anti risk ability and strong solvency. The company's operation is stable, brand operation and clothing sales are still the main source of company's revenue and profits. The main brand of the company, Hai Lan's home, is still well known, and still has a strong brand competitive advantage. In terms of procurement, the company's Hai Lan's home is mainly based on the purchase pattern of the return clause with a slow sales product, and it shares the risk of unsalable with the supplier, which is conducive to improving the quality of the supplier's products. To reduce the sale of unsalable goods to the company's channel resources and enhance the competitiveness of the company, the company's direct franchise management mode can achieve unified management and rapid expansion of the stores, and at the same time, the company purchases goods on credit by way of credit, thereby reducing the occupation of the Monetary Fund of the company. At the end of 2019, the company's non restricted monetary fund still has a large scale and can be covered. The company has interest bearing debt scale and its debt paying pressure is small. At the same time, due to the increase in Direct stores and the acquisition of children's wear brands, the cost of the company increased during the period, resulting in a decline in profit scale and a slight decrease in profitability. In the first quarter of 2020, the profit level of the company declined, and the company stores were still mainly distributed in the three or four line cities. At the end of 2019, Hai Lan's home can not be returned to stock with a large scale. If the stock of inventory in the next 2 years continues to increase, it will face some risk of falling price.

On the basis of comprehensive analysis, Dagong's credit rating for Hai Lan home's "Hai Lan convertible bond" has maintained AA+, the main long-term credit rating has been maintained AA+, and the rating outlook has remained stable.