The Precious Birds Break Their Wings, Starting From The Tiger Community.

After running for 5 years on the road of Pan sports, the precious birds finally got nothing.

01 is not easy.

The birds are about to fly.

This is not alarmist talk. In October 10th, the financial controller was criticized by the Shanghai stock exchange for the financial violation. SH:603555 and the chief financial officer were also criticized by the Shanghai Stock Exchange.

The announcement said that due to the failure to be diligent and conscientious, it was responsible for the company's financial assistance not performing the irregularities of the review procedures and disclosure obligations, and the two secretaries of the company were under the supervision of the Shanghai Stock Exchange.

The reason for this is that in 2015, 2016 and 2017, the company contributed a total of 1 billion 942 million yuan, 1 billion 745 million yuan and 1 billion 419 million yuan to the distributor respectively, accounting for 86.85%, 73.2% and 50.9% of the latest net audited assets of the company, respectively. The financial balance at the end of the three year was 67 million 13 thousand yuan, 102 million 300 thousand yuan and 90 million 270 thousand yuan respectively.

For three consecutive years, it provided financial assistance to dealers, and accounted for more than 50% of net assets. This means that the financial assistance has reached the criteria for shareholders' meeting and information disclosure standards.

However, the birds did not submit their financial support to the shareholders' meeting in time, nor did they fulfill their obligation to disclose information in time.

Moreover, 24 days before being criticized by the Shanghai Stock Exchange, the ratings of the birds were also lowered.

In the evening of September 16th, the "bird of honor" announced that the company's main body and bond rating were reduced from AA- to A, and the rating outlook was also changed from "stable" to "negative".

This is not the first time that a bird has suffered a downgrade of the company's main body and bonds. In June 24th, the rating of AA was reduced to AA-, and the rating outlook was "stable".

In just three months, the company's main rating has been reduced by two.

Poor operating conditions and horrible financial data are considered to be the two reason for the decline of the company's main body and bond rating.

According to the semi annual report, in the first half of 2019, the total revenue of the precious birds was 810 million yuan, down 47.27% compared to the same period last year, while net profit decreased from 34 million yuan in the same period last year to -0.59 billion yuan, a decrease of 269.59%.

In addition, net cash in operating activities also decreased from 555 million yuan in the same period last year to -0.20 billion yuan.

The first quarter's financial data also can not bear to look straight ahead.

According to the first quarter financial report, the total revenue of the precious birds was 522 million yuan, down 37.4% compared to the same period last year. In contrast, net profit fell by more than 13 million 918 thousand and 100 yuan, down 83.66% from the same period last year.

The ripple effect brought by the sluggish performance is finally reflected in the price of the bird. As of October 29th, the market value of precious birds was only 2 billion 489 million yuan, which evaporated 40 billion in 5 years, less than 1/16 in the peak period.

Apart from the disappointing financial data, the operation of the expensive bird is also worrying, which can be seen from its continuous closure of a large number of stores.

In the 2014 annual report, you revealed that as of December 31, 2013, the marketing network of the popular bird has been distributed in 31 provinces, autonomous regions and municipalities directly under the central government. The 5560 retail outlets of the most popular bird brand are in steady operation.

By the end of June 2019, however, there were only 2685 stores in the store, and 2875 in 5 and a half years.

In fact, since its listing in January 2014, the birds have closed hundreds of stores every year.

According to the comprehensive financial reports over the years, the number of stores that were closed in 2014, 2015, 2016, 2017 and 2018 were 534, 561, 359, 376 and 857 respectively. In the first half of 2019, 188 stores were closed again.

By comparing the data, it is easy to see that the number of birds in 2018 reached its peak. This year was also a year when the birds were completely dragged down by the blind expansion strategy. The data in the 2018 annual report also proved this point from the side.

According to the 2018 annual report, the total revenue of the precious birds was 2 billion 812 million yuan, down 13.52% from the 3 billion 252 million yuan in 2017. It is worth noting that the net profit was negative for the first time, from 157 million yuan in the same period last year to -6.86 billion yuan, a decrease of 536.01%.

What's wrong with the noble birds that once said they could not be stopped?

02 blind expansion is equivalent to chronic suicide.

In January 24, 2014, Lin Tianfu led the noble bird to the Shanghai Stock Exchange to become the only A sports brand listed company.

You can really afford the aura of "A share sports brand first share". From 2009 to 2011, the birds of the world opened up territory at an amazing speed, and the stores increased from 1847 to 5067, and business income rose from 600 million yuan to 2 billion 650 million yuan.

Unlike high-end brands such as Nike and Adi, which actively occupy the first and second tier cities, consumers are targeting the consumers of the three or four tier cities, and the most cost-effective sports shoes are the first to sink the market to the township level.

Deep ploughing and sinking also brought enough returns for the birds. In 2012, the total revenue of the precious birds reached 2 billion 860 million yuan, and the net profit was 500 million yuan. In the same period, Lining's total revenue was two times that of the expensive birds, but the net profit loss was over 1 billion 900 million yuan.

After the listing, the price of the precious bird rose sharply, and its market value smoothly exceeded 42 billion 600 million yuan, and even overshadowed Lining. This year, Lin Tianfu also became the richest man in Quanzhou by 19 billion yuan in 2015.

But the time of high birds is not too long.

The first earnings report after the listing will bring the birds back to their original form. In 2014, the total revenue of the precious birds was 1 billion 920 million yuan, down 20.21% compared with the same period last year, while net profit was 312 million yuan, down 26.27% compared with the same period last year.

Both revenues and net profits declined, exposing the limitations and vulnerabilities of a single business.

Of course, you can't wait for death. After 2014, the great bird began to lay out the pan sports industry.

In short, it is the establishment of a sports industrialization group based on the manufacturing of sporting goods and clothing and the coordinated development of various sports industries.

The sports industry mainly consists of three parts: sports competition entertainment industry, sports consumption service industry and sports goods manufacturing industry.

According to internal analysis, the sports goods manufacturing industry occupies the largest proportion in the sports industry, but with the development of the industry, sports competition entertainment industry and sports consumption service industry will develop vigorously.

In 2015, the expensive bird bought a sports network platform tiger stock with 239 million yuan, and became the second largest shareholder of tiger pads. It tried to make up its short board in sports competition entertainment industry and sports consumption service industry with tiger puff.

In addition, the sports industry fund was established with huppu.

Meanwhile, the precious bird invested 20 million euros to invest in BOY, a Spanish football brokerage company, to promote sports brokerage business.

This is not over. After a while, the expensive bird invested 200 million yuan. The joint Chinese University Student Sports Association and tiger tiger set up Kang Pai Si to take this opportunity to cut into the college sports industry.

In 2016, it was a year of rapid expansion of the precious birds. In order to rapidly expand the territory of the sports industry, the noble birds, who were tired of their performance, once again joined up with the tiger to set up second sports industry fund competition domain capital.

By the end of 2017, the precious birds had invested 700 million yuan in mobile capital. According to the survey, the company has invested 31 companies overseas, including football, basketball, running, fitness and outdoor sports.

Apart from relying on the layout of the sports industry by Tiger flapping, the "noble bird" has begun to accelerate its expansion in traditional sports shoes and clothing.

According to public figures, in 2016, the precious birds invested 383 million yuan and 382 million 500 thousand yuan respectively in the purchase of 50.01% of the sports products retailer's Jay trip, and 51% of the sports brand online retailers' shoes store.

It was also in this year that the price of $26 million was awarded to the AND1 brand in the Chinese market.

The pace of expansion has not stopped. In 2017, the expensive bird purchased 368 million shares of the shoe stock and became the wholly owned shareholder of the shoe store.

In addition, he invested 150 million yuan through Jay's trip to acquire a 45.45% stake in another sportswear and footwear retailer Hubei Sheng Dao sports, and finally authorized the market authorization of PRINCE in China and Korea at the price of 20 million euros.

After a lot of investment, the pan sports industry has not changed the expected results, but has brought tremendous pressure to the operation of the birds. This pressure has finally been reflected in the continuous growth of the number of inventories and the turnover of inventory.

In recent years, the data of the birds show that in 2015, the number of birds in the world was 170 million, and the turnover time was 63.72 days.

In 2016, due to the new subsidiary of Jay and the famous shoe store, the inventory of the birds was not optimistic.

Earnings data show that the number of birds in the world has reached 474 million, an increase of 177.98%, and the turnover of stocks has increased to 85.71 days.

Besides the pressure of inventory and inventory turnover, the operation of the birds is not satisfactory.

The financial data displayed in the financial report is most intuitive. In 2015, 2016 and 2017, the total revenue of the precious birds was 1 billion 969 million, 2 billion 279 million and 3 billion 252 million respectively, while the net profit was 331 million yuan, 293 million yuan and 157 million yuan respectively. In 2018, this figure changed to -6.86 billion yuan.

Total revenue is rising every year, but net profit is declining, which is directly related to the decline in gross profit of main business.

According to the earnings data, from 2015 to 2018, the gross profit margins of the main business sports shoes and clothing of the main bird business were 45.18%, 39.84%, 32.76% and 28.7% respectively, showing a relatively obvious downward trend.

In contrast, in 2018, Anta's total revenue was 24 billion 100 million yuan, gross margin was 52.64%, Lining's total revenue was RMB 10 billion 511 million yuan, gross profit margin was 48.07%, even for relatively small XTEP, gross margin was 44.31%, and total revenue was more than 6 billion 380 million yuan.

The comparison of the data can at least draw a conclusion that both the total revenue and gross profit rate do not occupy any advantage.

03, it's not easy to focus on the main business again.

The layout of the pan sports industry has been repeatedly run into the wall, and the road ahead of the precious birds that focuses on the main business is not clear.

The first stumbling block is the cash flow problem, and the solution given by the great bird is to solve the cash flow problem by constantly selling assets.

In August 2, 2018, the noble bird announced the sale of its company, "paus".

According to the announcement, the transfer of the 37% stake of the Beijing Sports Management Co., Ltd. and the 37% of the Beijing sports consulting company limited to the Jinjiang National Sports City Limited by Share Ltd, respectively, were transferred to 135 million 222 thousand and 100 yuan and 8 million 114 thousand and 200 yuan respectively, and the transfer amount was 135 million 222 thousand and 100 yuan and 8 million 114 thousand and 200 yuan respectively.

After selling the above company's equity and recovering its claim, you can get more than 200 million yuan.

Just four days later, the bird announced again that it had sold the 13.66% stake of tiger tiger, and agreed that the 13.66% stake of Quan Hu investment will be transferred to Shanghai Ding Dian Asset Management Co. Ltd., the transfer price is 273 million 280 thousand yuan.

After selling two shareholding shares, the birds earned nearly 500 million yuan of funds to supplement cash flow and save themselves.

At the end of 2018, the bird announced the transformation plan and announced that it would buy 146 million yuan to sell the sales channel of the dealer.

This means that after 5 years running on the path of Pan sports, the noble bird finally decided to give up the exploration of other fields, and the plate that took 5 years and spent a lot of money to accumulate was finally empty.

After returning to the main business, the second difficulty faced by the precious birds is that the industry pattern has been set, and the sinking market has been grabbed by 7788 by the competitors.

In the past few years, "no matter whether the Anta was the first to be transformed", or Lining, who was breaking through with the tide of cards and sports children's clothes, the status was no longer easily shaken.

Anta became the first sports brand with a market value of 100 billion yuan. After the acquisition of FILA, it took 4 billion 600 million euros to make it a sports revenue bag, and took the opportunity to make efforts to internationalize high-end brands.

Lining has also undergone three years of adjustment. In 2018, the total revenue for the first time exceeded 10 billion yuan and was also on the fashion week of New York.

By contrast, noble birds are still paying for the blind expansion of the system. Diversification may be able to explore a path of sustainable development, but from the current situation, the exploration of other birds is not successful.

In the nine place of Sun Tzu, it is said that the place where the investment is destroyed will be left behind. It means there is no way out, that is the way out. If you lose your heavy wings, you can take off again.