La Natsu Bell Released Delisting Risk Warning 2020 Will Reduce Revenue Targets

In July 1st, "national dress" brand La Natsu Bell Hussein lost 2 billion 170 million yuan in 2019, and for two consecutive years of loss, it had to issue a risk warning for delisting, changing the stock abbreviation to "*ST La Xia".

At the end of the day, *ST's limit fell to 2.91 yuan / share, which had 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.

A little bit was too bad for the 2019 revenue. La Natsu Bell rushed to the last day of the deadline for the disclosure of the annual report, and in June 29th it pinched out the 2019 annual report. Data show that La Natsu Bell'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.

At the same time, La Natsu Bell announced that the loss in 2019 was 2 billion 170 million yuan, the provision for all kinds of assets impairment was 940 million yuan, the stock was suspended for one day in June 30th, and the risk warning for delisting was implemented since July 1st, and the stock was changed to "*ST La Xia" for short.

As a gold medal signboard for local women's wear, La Natsu Bell has been listed for less than 3 years. How has it begun to decline?

In 2017, La Natsu Bell was a well deserved "shop king" in China's clothing industry. There were more than 20 brand camps, including women's clothing, men's clothing and children's clothing. There were 9400 stores, and the "multi brand, all direct camp" mode extended to the north and south of the river.

In 2018, La Natsu Bell's first business scale was 100 million, and it was also the first loss faced by the company after its listing. This also makes it gradually understand that the internal system of the company is difficult to support nearly 10000 direct operation.

Thousands of stores did not exchange for continuous performance. Instead, they became the burden of eroding the company's profits in the later development, and made La Natsu Bell's transformation more difficult.

In 2019, the extent of its losses increased again. La Natsu Bell said this is because the company is implementing a strategic contraction strategy, and by the impact of online channels and offline retail entities intensified competition, the company department store revenue declined significantly. In addition, revenue is also affected by slowing consumer growth, declining physical stores and warm winter weather during the reporting period.

The net profit attributable to shareholders of listed companies decreased year by year. La Natsu Bell said that during the reporting period, the company stepped up the operation of cash flow and increased the sales and discounts of the goods sold during the reporting period, resulting in a significant decrease in gross profit margin of the company and the same period last year, resulting in a decrease of about 600 million yuan in the reporting period. The reduction is about 1 billion 660 million yuan.

In the young and low-end women's clothing market, which La Natsu Bell mainly attacked, she never lacked rivals, removed local brands, and had a strong foreign fast fashion brand, and the Chinese clothing market was already overcapacity. Under the overall downward trend of the industry, Baer's "turnover" was particularly difficult.

Over the past year, it has been taking various measures to try to reverse the unfavorable situation, such as closing large stores, selling off its assets, stripping off deficit assets and so on, but turning losses into profits is not a quick thing. These can only help La Natsu Bell stop losses in time.

In 2020, La Natsu Bell took the loss and shell protection as the primary goal, and in the 2019 annual report, he voluntarily lowered the target, set the target of this year's revenue to 4 billion yuan, down nearly half of its business revenue last year. Only when we first get through the difficulties of the eyes, can the brand have the possibility of "bringing the dead back to life".