Blind Expansion And Hidden Danger, Can You Focus On The Main Business?

Since 2016, PEAK has been delisted, Hyde has gone bankrupt and Delhi has closed down. "The plight of these companies in the capital market is just a microcosm of the sports brand." Like most sports brands, the great bird has said that the market of sports shoes and clothing industry is low and industry competition is intensified. From the point of view of its own business, the main business revenue comes from its own brand products, and the distributor mode adopted relies heavily on large customers.

According to public information, the noble bird was founded in 1987, is a sports shoes and clothing and supporting products research and development, production, marketing in an integrated enterprise. And from the layout of its retail terminal, the main consumer groups of the main birds are concentrated in the three or four line cities, and have won the honorary titles of China's well-known trademarks, Chinese famous brand products, state inspection free products, and taxpaying AAA enterprises.

Part of the shares will be auctioned by law.

Recently, the A shares sports brand "first share" bird announced that the company recently received the notice of the controlling shareholder of the company, Hongkong Fujian limited. The intermediate people's Court of Xiamen city of Fujian issued an auction notice to the magnate bird group. It intends to transfer the 30 million shares of the company's unlimited sale conditions to the Jingdong's Fujian judicial auction platform of the Xiamen intermediate people's court for the first time.

In 2019, sports companies entered a more intense phase of differentiation. The "A share sports first stock" aura of the top of the head has been frequently bought and sold in the 5 years of listing. Now it is caught in the shop. According to the financial data, from 2017 to June 2019, the total number of birds and birds has reached 1421. The tide of loss and default is deep in trouble.

According to semi annual reports, the performance in the first half of 2019 continued the decline of last year. Operating income in the first half of this year was 810 million yuan, a decrease of 47.27% compared with 1 billion 536 million yuan in the same period last year. Net profit attributable to shareholders of listed companies also decreased from 34 million yuan in the same period last year to -0.58 billion yuan.

Three quarterly reports show that the company's revenue in the first three quarters was 1 billion 169 million yuan, down 49.2% compared to the same period last year, and net profit loss was 166 million yuan, which was 16 million 60 thousand yuan in the same period last year. During the reporting period, the company's main business income has declined, and the company's sales expenses and provision for bad debts have increased significantly. From January 2019 to September, there were 225 new stores and 587 stores closed.

In the context of declining performance, the noble bird tried to reverse the situation through mergers and acquisitions. In 2016, it was a year of rapid expansion of the precious birds. The birds kept the controlling power of the 3 subsidiaries and generated 575 million goodwill through the continuous acquisition of 810 million. This is also a great potential problem for the company's performance.

In the downturn, the noble bird has also sounded the horn of returning to the main business. In June 26, 2019, the company held a general meeting of shareholders, and it adjusted the medium and long term strategic plan to "return to the main business". Once proud of the high reputation of young people has also become a history, whether the birds in the future can "take off" depends on its own efforts.

Blind expansion and hidden danger

The birds were listed on A shares in 2014. The operating income and net profit in the first year of listing declined. In 2014, the company's net profit was 312 million, down 26.25% compared with the same period last year. In 2015, its net profit rebounded slightly; in 2016, it fell again; in that year, its net profit was 293 million, down 11.75% compared to the same period last year; the main reason for its decline was that the financial cost jumped 57.35% to 150 million, and the government subsidies received decreased by 26% compared with the same period last year. In the context of declining performance, the noble bird tried to reverse the situation through mergers and acquisitions.

In the first annual report after the listing, the noble bird suggested that we should promote the strategic transformation of the sports industrialization group which is coordinated by the traditional sports shoes and clothing industry to the diversified sports industry form.

From 2015 to 2017, the precious birds invested in tiger diving, Spanish football brokerage company BOY, Kangpai sports, Jay trip and famous shoe store, and acquired the authorization of AND1 brand in mainland China, Taiwan, Hongkong and Macao. The cumulative investment exceeded 2 billion yuan, which sparked the attention of the market.

In order to achieve diversified development, the company has been investing heavily in the past few years, but the industry involved in its investment has not been expected to return. On the contrary, blind expansion has made the group's financial burden serious, and after all, the great bird is closing its stores.

Insiders said that the main business of the company has not made any progress and diversification has not broken through so far, so the capital market is not optimistic. In the case of limited capacity, focusing on the main business is more reliable than diversification.

epilogue

Today's birds have become old yellow flowers, and gradually disappear in the public eye. The seemingly huge expansion of the territory not only failed to bring the expected growth in performance, but added a lot of financial pressure to it.

Since 2014, Lin Chiling has been invited to be the spokesperson for Taiwan's female artist, Chinese actor and singer Huang Xiaoming. Five years later, the good bird has already gone to the situation that the performance is changing from the positive to the negative, the bond paying is under pressure, and even the real controller is changing. In the future, if you can break through with adversity, you still need time to answer.