The Newly Disclosed Semi Annual Report Of Meibang Clothing Has Been Losing Money Year After Year

How lonely are you when you haven't bought metsbawi.

In the first half of this year, the company's revenue has shrunk to 1 billion yuan, which is even worse.

At the same time, the company has been exposed as long as half a year in arrears with employees' wages, and the cash flow tension can be seen.

People can not help but ask, this once "king of China's leisure clothing" is still saved?

Huge loss

What a tragedy! Meibang clothing used to be the leisure clothing brand of China. Now, it has fallen to the bottom. In the first half of this year, the company's revenue has shrunk to less than 1 billion yuan.

The newly disclosed semi annual report shows that in the first six months of this year, the company's operating income decreased by 47.49% to 723 million yuan; Net profit attributable to parent company was -689 million yuan, down 501.37% year on year.

The company attributed the decline to the epidemic. In the first half of this year, due to the control of epidemic situation in Shanghai, the logistics headquarters of the company in Shanghai was unable to deliver goods to offline stores and online shopping for two months; During this period, some franchisees had poor performance, overdue repayment and extension of accounts receivable period, resulting in the loss of accounts receivable of 215 million yuan. In addition, during the reporting period, the company continued to close the stores with unreasonable site selection, resulting in high cost of closing stores.

Although it is true that the epidemic will have a certain impact on the actual operation of the company, it is fundamentally the company itself that has problems. From 2019 to 2021, Meibang clothing's revenue has dropped sharply for three consecutive years, and the net profit attributable to the parent company has been in deficit for consecutive years, with a total loss of more than 2.1 billion yuan.

In the past, Meibang clothing (002269. SZ) ran wildly with blindfolded eyes, and did not hesitate to invest heavily in high-quality business circles all over the country to grab the front and open big stores, which led to the high expenditure of rent and manpower, and the low operation efficiency.

From 2019 to 2021, the average rent to sales ratio of the company is about 38%, and the industry average is 15% - 20%; The average wage to sales ratio is 16%, which is about twice the industry average; The average sales ratio was 21%, about 10 percentage points higher than the industry average.

In order to change the unreasonable pattern and improve the company's profit level, Meibang clothing continued to reduce the size of its stores. In the past three years, 785 stores, 683 stores and 403 stores were closed respectively. In the first half of this year, the company continued to close 394 stores, leaving only 1249 stores (56 Direct stores) at the end of the year.

Ten years of Hedong and ten years of Hexi*** During this period, the number of Meibang clothing stores in China was more than 5000. In 2011, the company's revenue scale was close to 10 billion yuan.

fail to pay wages

Zhou Chengjian once became the richest man in China's clothing industry relying on Meibang clothing. Who would have thought that, nowadays, the wages of employees have not been paid out.

Some suspected employees of Meibang reported through the social platform. Since March this year, the human resource center of Meibang clothing has continuously issued notices on delaying the payment of wages. However, there is no clear timetable for when to return to normal.

Since June this year, on various Internet platforms, suspected employees of Meibang clothing have reported that the company has defaulted on salary. Since then, the problem has not been solved, and has become increasingly fierce. There are even several employees holding banners and asking for pay in public.

Authoritative media confirmed through interviews that Meibang clothing is in arrears with employees' wages. A number of employees have applied to labor arbitration institutions for arbitration.

It is understood that this is not the wage arrears of Meibang clothing company. Similar situation has occurred in 2020, and it is not until the middle of 2021 that the arrears of wages will be made up.

This time, Meibang clothing even issued a sales task internally, requiring employees to sell goods through a small program called "Bongo". The target of each person is 1500 yuan. When the task is accomplished, you can not only get commission, but also use 50% of net sales to pay for yourself.

This month, the problem of American bond's arrears of pay has been widely concerned by authoritative media, but the company has never made a positive response to it. Is the company in arrears? What is the total amount of wages in arrears? It's not known to the outside world.

However, from the semi annual report disclosed by the company, we can see a clue.

In the first half of this year, Meibang clothing continued to close stores, and the number of employees should be significantly reduced compared with the beginning of the year. However, the company's employee compensation payable increased from 76 million yuan at the beginning of the year to 131 million yuan at the end of June. At the same time, the cash paid by the company to and for employees dropped sharply from 313 million yuan in the first half of last year to 151 million yuan in the first half of this year.

Sell son

It is an indisputable fact that Meibang is short of money.

As of the end of June this year, the company has 169 million yuan of monetary capital, and the short-term loan of the same period is as high as 1.121 billion yuan.

The company has been selling assets for life since 2021.

In March of the same year, the company transferred the equity of the company's Mogong industry to Bacchus liquor for 448 million yuan. The main assets of the subsidiary are the real estate located at No. 799, Kangqiao East Road, Pudong New Area, Shanghai, with a total construction area of more than 38000 square meters. Zhou Chengjian used to invest heavily in the construction of the clothing museum here.

Immediately after that, the company launched a major asset sale of 10.10% equity of Huarui bank.

Huarui bank was approved to be established in 2014, and it is one of the five private banks in China. Originally, it was jointly initiated by Fosun Group and Junyao group. During this period, Guo Guangchang withdrew and joined hands with Ma Yun to establish an e-commerce bank.

At that time, Meibang clothing was in the ascendant. Seizing this opportunity, it replaced Fosun Group and invested 450 million yuan to become the co sponsor and the second largest shareholder holding 15% equity of Huarui bank. In recent years, Huarui bank has contributed tens of millions of yuan to Meibang clothing every year.

Even so, the company must not sell this high-quality asset on the shelf, after all, there is hope to live.

The appraisal value of 10.10% equity of Huarui bank is 424 million yuan. The proposed purchaser is Kaiquan pump, one of the sponsor shareholders of Huarui bank, holding 8.15% equity of Huarui bank, which is the top five shareholders. After the transaction, Kaiquan pump will become the second largest shareholder of Huarui bank.

The transaction has lasted more than a year and is still waiting for the approval of the relevant authorities.

By the end of June this year, the net assets of Meibang clothing had been only 347 million yuan.