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The Birds Are Not Flying. 325 Million Shares Are Frozen, And The Deficit Is 700 Million.

2019/8/22 15:11:00 0

Guirenniao

After the birds of fortune, the birds of the noble birds could not fly.

In August 3rd, a notice issued by the sports shoes and clothing brand bird showed that the shares of the 325 million listed companies owned by the parent company group were frozen by law and waiting for freezing.

Up to now, the company has held 479 million shares of listed companies, accounting for 76.22% of the total share capital. The number of shares affected is 427 million shares, accounting for 67.86% of the total share capital. If the frozen shares are dealt with judicatory, then the birds will be forced to change hands.

It is worth noting that since last year, the "noble bird" has gone through several share pledge, totaling more than 138 million shares.

In the first quarter of 2019, the revenue of the precious birds was 522 million, down 37.4% from the same period last year, and net profit was 13 million 918 thousand and 100, down 83.66% compared with the same period last year.

The sluggish performance is also reflected in the stock price. At present, the price of the bird is 4.37 yuan, and its market value is 2 billion 747 million yuan, less than 1/10 of its peak.

In addition, at the end of this year, the $1 billion 147 million bond will expire. If you fail to make the transition, then you will face the risk of not paying the maturity bonds.

   From peak to trough

Chen Dai Town, Jinjiang, Fujian, built a "China shoe capital" with a hammer and nails. At its height, more than more than 3000 shoe factories produced 1/5 of the shoes nationwide, including Anta, 31st, Jordan and other people's familiar sports brands.

The precious birds also took off from Jinjiang in 1987. Andy Lau and Cecilia Cheung took the opportunity to fly across the country and fly into the Shanghai Stock Exchange in 2014. After listing, the market value of the birds reached 40 billion, and remained at around 15 billion yuan after the stabilization.

China's vast market provides a deep development hinterland for sports shoes brand. At that time, ADI, Nike and other high-end sports shoes brand firmly occupy the first and second tier cities. The "noble bird" aims at the characteristics of consumers in the three or four tier cities that are highly sensitive to price.

By the end of 2018, there were 2873 retail outlets, including 399 first-tier cities, 657 second tier cities, 1246 1246 cities in three cities, 571 retail outlets in four cities, and 77.5% retail outlets in three or four cities.

However, with the upgrading of the consumption of the three or four tier cities, Nike, ADI, Anta and Lining's strategy sinks, which occupy the market space of the precious birds. The sales of sports shoes have always taken the lead, and the crisis has further intensified.

   "Buy buy buy" sequela

The first earnings report after the listing will bring the birds back to their original form. In 2014, the net profit of precious birds was 312 million, down 26.25% from the same period last year.

This report card directly exposes the fragility of a single business. Specifically, it is the establishment of a sports industrialization group based on the manufacturing of sports apparel products and the coordinated development of various sports industry forms.

In 2015, the precious bird bought 240 million shares for tiger sports and became its second largest shareholder. In July, it invested 20 million euros in The Best Of You Sports, and invested 383 million yuan in the retail channel in June 2016. Two months later, it bought a 51% stake in the shoe store with 383 million yuan. After nearly a year, it bought a 49% stake in the shoe store at a price of 368 million yuan, and turned it into a wholly owned subsidiary.

During this period, the "buy and buy" step of the "bird buying and selling" has also stepped into the insurance field, for example, 65 million of the registered insurance company enjoys insurance, and has established Ankang insurance with other companies.

What is the effect of this series of dazzling acquisitions?

Numbers do not lie.

Since 2016, the profitability of noble birds has been on the decline. Net profit of 293 million yuan and 157 million yuan in 2016 and 2017 respectively. In 2018, it suffered a direct loss of 686 million yuan, which is the first time that a listed bird has suffered a loss after listing.

Your bird chooses to stop in time. In 2018, the expensive bird changed itself to "sell sell sell" rhythm, first transferred the shares of Kang Pai sports shares with 143 million, then sold tiger share sports shares by 273 million, and transferred the shares of Jay's shares at the end of the year.

   The world is a big dream.

In the 2018 annual report of the "noble bird", it describes the original intention of diversification strategy. "Originally planned to launch a new retail business through the cooperation of Jay, the famous shoe store and the sports industry layout resources, and gradually push the company's own AND1, PRINCE brand to the market through the new retail business."

However, the dream is too full, but the reality is that the layout of these sports industry can not only help the main business, but it has dragged on a lot. In 2018, the sale of Jay's shares was caused by a loss of 112 million yuan. The sale of goodwill due to the acquisition of a shoe store amounted to 93 million 200 thousand yuan.

You know what your plan is to do.

However, there are deviations in the anticipation of fierce competition in the retail market. The high sales costs and gross margins of Jay's high line make it determined to throw away the burden even if it generates more than 100 million of the loss. With the development of new sales mode such as Internet electricity supplier, the competitiveness and follow-up development of famous shoe library also need to be marked with a question mark.

The acquisition business has become a hot potato, and its main business is at risk. No doubt, this year, the birds put forward the "return to the main business", and hope to get a breakthrough online, upgrade and transform the store, and speed up the turnover of goods.

In addition, the precious birds also hope for more mature offline channels to explore online and offline integration.

Due to changes in the market environment, the sale of the main brand is down, and there are some turbulence in the dealer system. Some marketers have proposed transferring channels or joining other brands. As a result, in 2018, the company adjusted its brand sales model, bought 14 provincial channel resources, and repurchased inventory products at a total price of 372 million yuan, which also plunged it into the risk of high inventory.

After a long walk back to the old bank, Anta, Lining, XTEP and so on were gone.

Anta became the first sports brand with a market value of 100 billion. After the acquisition of FILA, it took 46 euros to build up the high-end brand in the Amer Sports (Amer Sports). After three years of adjustment, Lining received the first billion breakthroughs in 2018 and boarded the fashion week. And XTEP's transformation of professional sports brand, all the way to catch up, also surpassed 25% revenue growth and 61% net profit growth in 2018.

In the past years, Jinjiang shoe brands have experienced ups and downs, some have settled firmly in the market, and have begun to aim at the international arena, such as Anta and Lining, while others have been lost in the long river.

Can you find your place in the vortex of change of times?

Source: Zhang Hangying, author of Internet business in the world

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