Without Production Line, Is The Shoe Industry Of Noble Bird Still Going On

Before long, the shoes and clothes you buy will no longer be made by the company itself.
Yesterday, the company announced that it decided to cut down the production line. In the future, shoes and clothing products will be completed by outsourcing processing, which will completely transform into a sports brand and channel operator.
In addition, the company plans to cancel all the 14 branches without actual business operation to further reduce the cost and increase efficiency. Lin Siping, the chairman and general manager of the company, who has been in office for 13 days.
How can 34 year old Lin Siping bring the noble bird back to life?

Cut down the production line
* ST noble (603555. SH) is the first sportswear brand listed in A-share market.
However, since 2018, the company has been suffering from the liquidity crisis. This year, after nearly half a year of restructuring, the company successfully introduced investors such as Taifu Golden Valley, and finally saw a glimmer of hope.
But it's just the beginning.
In the words of Lin Siping, chairman and general manager of the company, all things are coming back and starting a new business.
After completing the restructuring plan in early July, the company has moved its headquarters from Guanyinshan, Xiamen to Chendai Town, Jinjiang, and back to the place where Lin Tianfu, the company's actual controller, started his business. Recent important decisions of the company have been made in the meeting room on the second floor of the old factory of chendaizhen noble bird company.
The last time, it is the company's business model and efficiency of the "knife".

On July 15, the company focused on two major events in the announcement: one was to cut down the production line, the other was to cancel a number of branches without actual business operations.
Zebra consumers note that the production of sports shoes and clothing has always been the core link of the company. Previously, the company's sports shoes and clothing products adopt the mode of self-produced + partial outsourcing processing.
According to the company's announcement, in the future, the company's sports shoes and clothing related products will adopt the outsourcing processing and purchasing mode, most of the personnel and business related to the production will no longer be retained, and the related assets will also be re planned for use.
Production depends entirely on outsourcing and OEM, and returns to the early stage of Lin Tianfu's entrepreneurship.
In the late 1980s, Lin Tianfu, like many Fujian businessmen, gathered in Chendai village and made a fortune by doing OEM and OEM business for international sports shoes and clothing brands.
Now my son's handprint is very hard on the production side. He has the consideration of reducing the cost of production, operation and management. Another consideration is that we must improve our business ability and ability as soon as possible.
On July 14, the board of directors of the company passed a proposal to cancel 14 branches except Beijing and Xiamen branches, and the company would undertake all the assets, debts and personnel of the branches to be cancelled.
Among the 14 companies, except for the guirenniao Quanzhou Taiwan investment branch company established in 2014, the other 13 companies were all incorporated in 2018.
Because the company's product sales have been completed by distributors, the above-mentioned branches responsible for direct sales business have no actual business, so they have become the "ghost of the sword" of Lin Siping.

Lin Siping's problems

The successful completion of the reorganization plan is only the first step in the long march. As Lin Siping said, "it is not easy to recover the reputation and reputation lost by the company".
* it has been 3 years since st noble broke out liquidity crisis, and the brand has suffered heavy losses. In addition, the brand image of noble bird is aging, which has been squeezed and eroded by the major sports shoes and clothing brands in the third and fourth tier cities on which the company relies. Its retail terminals have also shrunk sharply, leaving only 1422 by the end of March this year.
In the first quarter of this year, although the company's operating revenue increased, it was still negative.

With the restructuring of the company, investors have brought in 700 million yuan of capital, which may temporarily alleviate the liquidity crisis of the company, and it is necessary to actively open up resources in the future. In addition, the company still has a lot of debt pressure. As of March this year, the company had 1.302 billion yuan of non current liabilities due within one year, and the monetary capital was only 22.68 million yuan.
On the one hand, the company announced that it would focus on the main business and restore the market influence of the noble bird brand as soon as possible. On the other hand, it was cutting off the production end and neglecting asset operation. In addition, we are ready to step into food trade that we have never been involved in.
More than ten days ago, the company announced that it planned to set up Shanghai Michaelle trade with its own funds of 50 million yuan. In addition to selling sports shoes and clothing, it also increased grain trade and food business.
The external worry is that Taifu Golden Valley takes the opportunity of restructuring to enter the company, and its business is not only difficult to help the company's main business of sports shoes and clothing, but there may be variables in the future.
From the perspective of equity structure, Taifu Jingu holds 20.36% of the company's equity, and the total shareholding ratio of the other four natural person restructuring investors is 14%. Affected by the restructuring, Lin Tianfu's 100% holding of guirenniao group's equity was diluted from 66.20% to 26.48%. The total shareholding ratio of restructuring investors is close to 35%, far exceeding the controlling shareholders.