La Natsu Bell Scraps The Wound, Reduces The Annual Goal To Save Lives.

Once "shop king" had to shrink the front line, reduce the scale and sell assets, so as to keep the profits in 2020.

But, as the founder of the company, Xing Jiaxing has no chance to sit in a handsome position, and continue to command thousands of people to rush into battle and to be ashamed before the snow.

"National Women's wear" wears a hat.

La Natsu Bell's performance in 2019 was doomed to be ugly.

Data show that the company's annual operating income of 7 billion 670 million yuan, down 24.66% compared to the same period, net profit of -21.7 billion yuan, an increase of more than 2 billion yuan over the same period last year.

After years of huge losses, the "National Women's wear" company wears a star cap. At this point, it is less than 3 years from the A share listing.

At the beginning of July 1st, the *ST limit fell to 2.91 yuan / share, which has dropped more than 6 yuan compared with the issue price of 841 million yuan.

At present, the total market capitalization of A+H shares is less than 2 billion yuan.

The decline of La Natsu Bell began in 2018. In those days, the company's business scale was the first to break tens of billions, and it also recorded the first loss since the listing of the company.

The losses in 2019 increased significantly, and the most important reason was the poor management of the main business.

In order to ease the tight cash flow, the company increased the intensity of inventory handling, resulting in a marked decline in gross margin. This factor led to a gross profit reduction of about 600 million yuan, resulting in a decrease of about 1 billion 620 million yuan in gross profit in the whole year due to factors such as closing stores and declining sales.

In addition, there is a superposition of asset impairment factors. In the whole year, accounts receivable, inventory, long-term equity investment, goodwill and so on, the total provision for impairment of assets is 944 million yuan.

Among them, the impairment of stock assets is as high as 349 million yuan. By the end of 2019, the company's inventory balance was 2 billion 71 million yuan, accounting for 25.44% of the company's total assets.

In addition, a large number of inefficient and deficit outlets were shut down in 2019. This alone resulted in a decrease of 123 million yuan in the book balance of the assets of the right to use.

Zebra consumption combing found that in 2019, the company's 10 main shareholding companies, 9 losses, 6 losses over 100 million yuan, the only profitable jito information, earned less than 5 million yuan.

Survive with broken arms

Under the leadership of founder Xing Jiaxing, La Natsu Bell had been advocating the mystery of scale. In 2012 -2017, the number of stores in the company rapidly expanded from 1200 to 9400, which is a well deserved "shop king" in China's clothing industry. The brand camp has also expanded from 3 to more than 20, becoming a full category clothing carrier covering women's wear, men's wear and children's wear.

The increase in the number of stores has directly contributed to the growth of the scale of revenue, but it hasn't changed to the continued success. Once the industry has changed dramatically, these stores have become a drag on corporate profits.

In the face of the deteriorating business situation, La Natsu Bell has been closing up for the past two years. In 2019, the company further intensified its efforts to close its stores. The number of domestic outlets decreased from 9269 at the beginning of the year to 4878 at the end of the year.

At the same time, the company has changed the pattern of multi brand direct operation in the past, initiatively contracted the scale of non core brands and business development, cut down the men's clothing business with poor profitability, and refocused on the multi brand cluster of women's clothing with the core of La Chapelle.

Instead of insisting on the whole direct operation, the company is implementing a new mode of joint operation and franchise based on the main business, so as to reduce its risk. In 2019, the company's affiliation / affiliation generated a revenue of 510 million yuan, contributing to total revenue from 0.07% last year to 6.65%.

It is unrealistic to rely on the strength of Xing Jiaxing, the company and the actual controller, to reverse the decline. In March this year, the company decided to move its registered place from Shanghai to Xinjiang Urumqi hi tech Development Zone, in order to seek support from local financing channels and alleviate the pressure of liquidity.

In the first quarter of this year, the company recorded an operating income of 1 billion yuan and a net profit of -3.42 billion yuan, down 57.75% and 3609.01% respectively from the same period last year. At the end of the term, the company's assets and liabilities ratio has reached 88.87%, the current monetary fund is 251 million yuan, short-term loans are 1 billion 498 million yuan, and the short-term debt repayment pressure is huge.

In 2020, it was La Natsu Bell's first goal to turn around the losses and protect the shell. However, in terms of the company's current business situation, it was difficult for the main industry to turn the corner. More than 10 days ago, the board of directors passed the resolution to sell 100% stake of Sun company Taicang Xia Wei stock for 725 million yuan. Before the transfer, the company needed to invest in part of the real estate (including 4 128 thousand and 300 square meters of housing, 2 126 thousand and 900 square meters of land), and 386 million yuan to Taicang Xia micro storage. To put it plainly, selling land for sale is a way to change money.

After the transaction is completed, on the one hand, it can bring capital to the company and generate assets disposal income of about 337 million yuan.

In the 2019 annual report, the company has voluntarily lowered its target, setting the revenue target of 4 billion yuan this year, down nearly half of its revenue last year.

Sad Xing Jiaxing

17 years ago, when SARS broke out, Xing Jiaxing founded the La Chapelle brand for two years.

In this global epidemic, the retail industry has been shrinking the front line, and Xing Xing Xing has made great progress in the retaliatory consumption after SARS.

At the beginning of his career, xingjiaxing was keen to take part in the fashion week around the world. He was Zara's fast fashion model and had always been ambitious to make La Natsu Bell a Chinese version of Zara.

With the multi brand and all direct battalion mode, La Natsu Bell opened stores in China, especially in 2014 and 2017, respectively. After the two ports were listed in Hong Kong and Shanghai, the company expanded its scale with capital advantages.

Xing Jiaxing obviously failed to learn the core of fast fashion brands such as Zara, the rapid response capability of the supply chain.

He looked up at the tall building and watched him feast. Outside and investors have doubts about Xing Jiaxing's personal ability.

In February this year, Xing resigned as chairman of the company and no longer held any position in the company. At the same time, as a controlling shareholder and actual controller, he nominated Lu Ersui and Cai Guoxin as candidates for the board of directors, and recommended Lu as chairman of the board. However, at the subsequent shareholders' meeting, two people received very low votes and were not elected.

Lu and Cai were appointed chairman of the Jiangsu three friends and chairman of the board of supervisors. In 2012, Lu Er took the control of three friends in Jiangsu. After two years, he sold the shell to the American great health and gained about 5 times earnings.

The nominee is not trusted. Xing Xing as a real controller, he wants to get a job in the company too.

At the end of 3 this year, the board of directors of the company was changed ahead of schedule, and many people like Xing Xing Xing were nominated as directors candidates. But at the shareholders' meeting, Xing Xing Xing became the only board candidate to be voted down by the shareholders.

Besides the company, xingjiaxing's personal financial situation is quite worrying. Xing Jiaxing and his co operative man, Shanghai, jointly held 187 million shares of La Natsu Bell, accounting for 34.16% of the total share capital of the company, and accumulated pledged shares accounted for 99.85% of the total number of shares held.

The corresponding financing amount of xingjiaxing's equity pledge is 440 million yuan, which expires in April 2021. The corresponding balance of financing in Shanghai and summer is 66 million 500 thousand yuan, which will expire in October this year.

In August 2019, xingjiaxing's equity pledge became a breach of contract because it was lower than the performance guarantee ratio. Since this year, the company's share price has continued to fall, and its risk of mortgage explosion has intensified.