Guiren Bird accused of "circling money" prospectus disclosure of selective disclosure
Training Wear,Training Jogging Wear,Training Suits,Gym Training Clothes Guangzhou LIDONG Garment Industry Co., Ltd. , https://www.lidongsports.com
The Mainland sports brands listed on the Hong Kong Stock Exchange have collectively encountered Waterloo in 2011, and the listed company’s share price has also been at a historically lowest level.
However, it is surprising that the mainland's third-line sports brand “Precious Bird†prepared for listing and financing has revealed a brilliant prospectus.
In the prospectus, Guiren Bird’s description of the industry's prospects is full of ambitions, and the performance of companies such as Li Ning and Anta before 2010 proves the growth potential of the industry. However, there is no mention of the current downturn in the sports industry in the Mainland in 2011.
The whole industry is in an embarrassing situation, but the noble birds can be left alone and the industry insiders do not understand.
Great increase in performance
The elegant bird that intends to land on the A-share market has brought an unusually beautiful prospectus. Guiren Bird's prospectus disclosed that in 2011, total operating income reached 2.649 billion yuan, and the performance for the same period in 2010 was only 1.535 billion yuan.
In accordance with the relevant information disclosure rules of the supervisory level, in the most prominent position of the prospectus, investors should be clearly advised on the risks that the listed company may face. The Bird Bird Prospectus shows that there are only four major risks: the risk of accounts receivable, the maturity risk of income tax benefits, the risk of dealer models, and the rising risk of raw materials and labor costs.
However, in the eyes of people in the industry, the biggest risk faced by noble birds is the systemic risk caused by the decline of the entire industry.
A brokerage researcher who declined to be named told reporters that after the rapid expansion of the previous three years, all sports brands have basically entered the bottleneck of development. After the Olympic Games in 2008, the expansion of sports brands in the Mainland has obviously accelerated, and the economies of scale brought about by the store-opening strategy have achieved full performance release.
Since the second half of last year, the industry environment for sports brands has become more and more distressed. Hong Kong-listed company Peak disclosed in its financial report that in the fourth quarter of 2011, the company's same-store sales growth was only 1.7%, far below the level of the first three quarters. Some investment banks predict that Peak's backlog of inventory in 2011 will not be able to digest until the fourth quarter of 2012.
At the same time, the special step of the relatively better performance of the sports brands of the Mainland in the past year also suffered a downgrade of the investment bank. China Merchants Securities (Hong Kong) believes that Xtep's performance will slow down significantly this year, while the company will continue to maintain its slow store-opening strategy, and its net profit will decline by 0.6% in 2012. China Merchants Securities gave a special rating that is weaker than the general trend.
The performance of the industry's leading players has been sluggish, and the elegant bird who wants to land on the A-share market has brought an unusually beautiful prospectus.
Guiren Bird's prospectus disclosed that in 2011, total operating income reached 2.649 billion yuan, and the performance for the same period in 2010 was only 1.535 billion yuan. The performance of many well-known companies in the industry was far less impressive than that of an expensive person. In the same period, special steps receivables increased from 4.458 billion yuan to 5.548 billion yuan, and 361 degrees increased from 4.331 billion yuan to 5.462 billion yuan.
After reviewing a large number of Hong Kong-listed sports-related listed companies, the reporter found that domestic and foreign investment banks are generally pessimistic about the prospects for the industry's 2012 outlook, and Xtep and Anta and other listed companies suffered ratings downgrades.
The above-mentioned researcher told the reporter that the elegant bird is close to Li Ning, Anta and other brands, and the high growth of noble birds is incompatible with the industry's current status.
Intriguingly, in the birdie prospectus, the data of Hong Kong-listed companies such as Li Ning, Anta, Xtep, etc. are all as of 2010, and these companies have shown continuous growth. However, for the most severe industry situation in 2011, the noble bird did not mention anything, not only did not describe the situation of the competitors' decline, but continued to positively reflect the prospects of the industry.
A senior investor pointed out that the bird was suspicious of the selective tendency and misleading statement in the information disclosure of its prospectus. The “Measures for the Administration of Information Disclosure of Listed Companies†stipulated that the information disclosure obligor should disclose information in a true, accurate, complete, and timely manner, and no There are false records, misleading statements or major omissions.
"Daqi" shuts shop "Bird" to make money
The increase in the proportion of noble bird stores has on one hand reflected the slowdown in the company's shop opening rate. On the other hand, it also indicates that the stores that have expanded rapidly in the past two years have gradually entered the phase-out period.
According to the proceeds of the stock offerings disclosed in the prospectus, of the total raised funds of 880 million yuan, 550 million yuan will be invested in new storefront construction, 180 million yuan will be used to expand the production capacity of shoe production bases, and the total R&D projects will be less than 15 million yuan. It is expected that the investment in newly opened stores will exceed 60%. If supplementary liquidity is taken into account, the proportion of storefront investment after the IPO is completed will be close to 80%.
Jordan Sports, which announced that it landed on the A-share market at about the same time as the elegant bird, focused its investment on IPO fund raising on capacity expansion. According to the instructions from the Jordan Sports Proposal, the company expects to raise 1.2 billion yuan of funds, build approximately 460 million yuan of direct-operated stores, and produce 490 million yuan of shoe production bases. Investment in opening stores will be less than half of the proceeds from equity offerings.
After the pains of the past year, Anta, Peak, 361 degrees and other brands have slowed the rate of opening stores.
"The sports brand is too bad to do now, the old shop is OK, the new store is difficult to make money." Liu Ke, sales director of a well-known sports brand Beijing Region, told reporters that several new stores opened in Beijing this year are in a loss state. The shop business in the core business district has been basically completed, and stores can only be expanded to new stores in the surrounding areas. The newly opened shops in the two shopping malls in the Qinghe and Chaoyang areas are close to the city’s commercial area, but the passenger flow is Much less.
Li Ning after years of operation, the current level of all stores in the control of 7000, Anta level and Li Ning is basically the same, other brands in the total storefront ranged from 5000 to 7000. Liu Ke believes that the mainstream brands have basically completed the coverage of the first and second-tier cities in China. There is a significant gap between the size of individual stores and profitability of first-tier and second-tier cities in other cities. The three or four-tier cities that the company strives to build can achieve sufficient results. The profit is very doubtful.
Liu Ke told reporters that bird products are relatively low-end compared to other brands, the product price is also set lower, according to the general pattern of the industry, dealers get goods is basically 4 fold, low-end brands are often relatively large retail discounts, dealers The profits will be eroded.
“Once the import volume of the industry dealers declines, the company’s performance will be eroded considerably.†Liu Ke said that big brands such as Adidas and Li Ning handed over all agency rights to famous channel brands such as Belle International, which have relatively good product digestibility. Brands such as elegant birds have a heavy reliance on dealers. In the second half of last year, the orders of various brands were generally not ideal. The market situation is not good, dealers will quickly reduce the purchase volume, and small brands have much lower anti-risk capabilities.
Although the noble bird has focused its IPO investment on opening stores, the company’s closing rate has also been increasing in recent years. In 2009, Guiren Bird opened 969 stores and 80 stores, and closed stores accounted for 8%; in 2010, it opened 2,070 stores and 161 stores, accounting for approximately 8%; in 2011, it opened 1,190 stores and closed stores reached 202 stores. Turnover ratio soared to 17%.
The aforementioned analyst told reporters that apparel and footwear companies will maintain a normal proportion of closed stores, eliminate poorly profitable stores, and increase overall profitability. In general, it is more reasonable to maintain the store at a rate of 10%. After the new store has been operating for about two years, it still cannot achieve the desired profit, and it will take a store. The increase in the proportion of noble bird stores has on one hand reflected the slowdown in the company's shop opening rate. On the other hand, it also indicates that the stores that have expanded rapidly in the past two years have gradually entered the phase-out period. This year's industry situation has continued to deteriorate compared to last year, and it is expected that the proportion of shopkeepers of noble birds may reach a new high.
Insiders pointed out that the noble bird is facing a huge risk of closing the shop, but to open the store as a major project of listing financing, which can not but doubt the purpose of their money.
Industry Unspoken Rules: Pre-market Impulse
A researcher told reporters, "As a sports brand enterprise, there are a large number of agents, franchisees, franchise stores, and complex financial transactions, which also provide the possibility to modify performance."
Compared with rivals Li Ning, Anta, 361 Degrees, and Hongxing Erke, the selection of HK stocks listed on the stock market is more intriguing.
Some investment bankers told reporters that “Li Ning, Anta and other companies have foreign investors stationed in them. Selecting Hong Kong listings can not only increase brand influence, but also provide convenient channels for foreign investors to cash in. The selection of A-share market by elegant birds is mainly due to Considering the amount of financing, the overall P/E ratio of the A-share board is still higher than that of Hong Kong. The price-to-earnings ratio of brands such as Li Ning and Anta is maintained at less than 10 times. While the noble bird landing A-shares can obtain more than 20 times of premium subscriptions with the current market conditions. The total amount is much higher than Hong Kong."
“At the same time, in the Hong Kong stock market, the market prospects of the mainland sports brands are not good. The stock prices of companies such as Xtep and 361 Degrees are basically at the lowest level in history. It is probably a question of whether or not the noble bird can get full subscriptions.†The above investment bank further stated.
It is worth noting that, as a labor-intensive listed company, tax policies have a huge impact on company performance.
According to statistics, the elegant bird belongs to a foreign-invested enterprise. Since 2008, it has enjoyed the state's “two exemptions and three reductions†tax break. However, the preferential tax period for elegant birds will be terminated by 2013 and the company’s prospectus will disclose that if there are no other new preferential tax policies introduced by the country, the income tax rate of noble birds will increase to 25%.
According to the information disclosed in the Prospectus Prospectus, between 2009 and 2011, the proportion of income tax incentives to net profit reached 30.46%, 14.85% and 10.36%, respectively. If the tax incentives were completely eliminated after 2013, the dilution effects on company performance would not be obvious. Yu. Birds also admitted that the cancellation of tax incentives will have an adverse effect on the company's after-tax profits.
In 2012, the sports brand is facing a severe test. After completing the IPO offer, the noble bird will have to ask a big question mark if it can continue to maintain high growth. Once the company's growth rate declines, and tax incentives are cancelled again, the performance of noble birds will inevitably change face.
A famous brokerage textile industry researcher told the reporter that most of the clothing, footwear, and hat listed companies had a centralized impulse process before they were listed. The so-called centralized impulse refers to the rapid expansion of the production capacity of listed companies, and the arrival of shops at the same time, reflected in the financial statements, the company’s The performance may be very good. However, the concentration of "impulse" has also brought a huge inventory pressure, a female A-share brand has been listed on the stock brand, listed in the past 3 years has still not completed the effective digestion of pre-market impulse, while dragging down the company's performance growth rate .
At the same time, the above-mentioned researcher told reporters that as a sports brand enterprise, there are a large number of agents, franchisees, franchisees, and complex financial transactions, which also provide the possibility of modifying performance. The reporter called the Guiren Bird Securities Affairs Department on the above issues, and the relevant officials rejected the reporter’s interview on the grounds that the secretary was unable to contact him.
After many contacts, a person related to an elegant bird responded: “There is no question of modifying the performance of the noble bird. The financial transactions between the company and its franchisees and stores are in compliance with the regulations.†The person also stated that he did not know the so-called “impulse†of the listing. Love, the company is all normal.
In the context of the industry downturn in 2011, the performance of the noble bird was "as usual," making investors more and more concerned about "not as usual" after the listing.