Failure Of Radical Expansion: The Strategy Of Diversifying Strategy For Delisting Early Warning

603555.SH seems to be flying.

Due to the risk of delisting warning red line, the bird is warned of delisting risk after disclosing the 2019 annual report. In May 6th, the VIP bird stock was changed to *ST magnate briefly.

"The company has put on ST's hat today." On the same day, the director of the office of the director of the noble bird Association confirmed to the times weekly reporter.

According to the April 30th risk warning and temporary suspension notice issued by the great bird in April 30th, the reason why the bird is listed as a blacklist of delisting risk warning is that its net profit attributable to shareholders of Listed Companies in 2018 and 2019 is negative.

The times weekly reporter learned from the GUI bird's nearly two years' financial report that in 2018 and 2019, the GUI bird earned 2 billion 812 million yuan and 1 billion 581 million yuan in revenue respectively, but the net profit for the first time came to a loss of -6.46 billion in 2018, and the deficit in 2019 increased again, exceeding 1 billion yuan.

6 years ago, the "A share movement brand first stock" aura was put on the capital market. In the past few years, it has been a frequent acquisition of sports related enterprises under the banner of diversification, trying to create a sports industry kingdom.

But contrary to expectations, the noble birds did not step up to a new level, instead, they got into debt. Debt default, stock freeze and other problems followed. The market value of more than 40 billion yuan has shrunk to 1 billion 600 million yuan in just a few years.

If you continue to lose money in 2020, you will face a risk of delisting.

"In 2020, the company will continue to focus on the development of its main business, enhance its operational capability in the traditional sports footwear industry, increase revenue and reduce costs, properly solve the debt problem, strive to turn losses into profits, and early withdraw the risk warning for delisting." This is what you said in the announcement.

But for the noble birds who have already taken on the heavy load, it is not easy to divide the soup through the main business in the sports market which is already in the Red Sea.

Diversification strategy "bury thunder"

Once you were once considered the benchmark of domestic sports brand.

This is attributed to Lin Tianfu, founder of noble bird. Before and after 2002, in the early stage of creating the brand of "noble bird", Lin Tianfu broke through the past marketing mode, and invited large stars to speak for himself, including Asian heavenly king Andy Lau. You are famous for your fame.

After having tasted the sweetness, in 2007, Lin Tianfu placed the stakes on the happy male voice, which was not yet popular at that time. After the program was launched, there was an upsurge in China.

Sailing in the wind, in 2014, the bird landed on A shares, and its market value was more than 40 billion yuan. Lin Tianfu's personal wealth also reached 19 billion yuan.

Since then, the birds have deviated from the main business track.

"In the future, we will push forward the strategy of the whole industry layout and multi brand management, and actively seek for the integration of resources with clear profit models," he said. Lin Tianfu said in 2016.

Based on the strategic layout requirements, the capital bird activity continues.

According to public information, during the period from 2014 to 2017, the popular bird bought more than ten times, shares in tiger sports, took the American basketball equipment brand in Hua Du fake trademark operation rights, acquired sports goods retailer's Jay's trip, acquired the shoe store and so on. The industry across the Internet + sports, sports brokers, event sponsors, sports insurance, sports games, sports fitness.

While most of the purchase targets are wholly owned, most of them are over 100 million yuan. Weekly Times reporter did not complete statistics, the amount invested by the expensive bird in the acquisition amounted to about 2 billion 500 million yuan, which is the total value of net profit from 2010 to 2016.

The return on investment is not as good as expected. In 2016 and 2017, the annual reports of the acquiring company in the frenzied acquisition were mostly presented in the absence of specific assets and no income. The net profit of the famous shoe store and Jerry is not more than fifty million yuan, but there is still a big gap compared with the purchase price.

This undoubtedly aggravated the pressure of the precious birds.

According to the Wind data, after the listing, the birds are expanding radically because of the larger cash flow generated by business activities every year. In 2014, its cash flow was about 100 million yuan; after a year, the cash flow increased sharply to 599 million yuan; in 2016, it slipped to 236 million yuan again; in 2017, the cash flow jumped to 633 million yuan again; after that, it slipped all the way, with a negative growth rate of -5.36 billion in 2019.

The situation of expensive birds is also not optimistic. In addition to the 34.97% to 3 billion 223 million yuan decrease in 2018, the liabilities for the rest of the year are rising. From 2014 to 2017, the liabilities amounted to 1 billion 970 million yuan, 2 billion 443 million yuan, 4 billion 791 million yuan, and 4 billion 956 million yuan respectively, compared with 3 billion 427 million yuan in 2019.

In order to resolve the capital crisis brought about by the acquisition plan, the financing pace of the birds has been tightened. Equity pledge loan has become one of the important ways of financing.

According to public information, from January 2017 to June 2018, 5 times, the birds were pledged to 4 trust companies. Up to twenty thousand shares pledge to Ping An Trust, Bohai trust, Zhongyuan trust, Zhejiang trust.

In May 8th, Li Xiaoyue, executive director of Song Shi's law firm in Guangdong, told the times weekly reporter that the pledge of equity activities would cause investors to reduce their investment intention and directly lead to a sharp decline in share prices, and then give negative effects on the risk of stock disposal, the risk of control transfer and the risk of maturity structure. The situation is worsening.

Insolvency

The ripple effect brought about by equity pledge continues.

In September 2018, the Xiamen trust took the lead in freezing the stake of the company. Since then, the stock freeze news has followed. As of April this year, the total value of the birds was frozen. The book value of the assets was 1 billion 280 million yuan, accounting for 26.93% of the latest audited assets. The total amount of the default debt was about 1 billion 200 million yuan.

The amount of more than ten billion yuan is already astronomical for the birds, and it is more difficult to fill the debt through profit. According to the financial report, since 2016, the net profit has decreased for 4 consecutive years, from 293 million yuan to -10.18 billion yuan.

In desperation, expensive birds can only recover their assets by selling assets.

According to public data statistics, since 2018, the precious birds began to divest the non main assets, and sold JE company to 300 million yuan to sell 37% stake of Kang Pai Pai Si sports and Kangpai sports consulting company for 143 million yuan, and then sold 270 million of the 13.66% stake of tiger tiger, and pledged BOY equity, which still failed to solve the capital crisis.

Those who are not yet in debt can not escape the fate of the shares being auctioned by the judiciary.

In December 2019, within ten days, the 37 million 695 thousand shares and 30 million shares of tradable shares sold by the company were sold by law, but all of them were sold without any bid.

"Generally speaking, the shares of a company are auctioned by law, and a large proportion of shares are frozen, which will not only adversely affect the company's cash flow and production and business activities, but may also lead to a change in the controlling shareholders and actual controllers of the company." Li Xiaoyue said that the auctions of high stakes are highly concentrated, and the auctions of equity auctions are also unsold because of no one's offer. This also shows that the market's recognition of the investment value of the birds is not high.

Return to the main battlefield

Behind the failure of the aggressive expansion, the precious birds gradually lose their right to speak in the main battlefield of shoes and clothing.

According to the results of the financial report, from 2016 to 2019, the performance of the main brand bird showed a declining trend, from 1 billion 889 million yuan to 1 billion 110 million yuan, of which the largest proportion of the 2018 decline was -39.03%.

But Anta and Lining, who are also sports brands, shine brilliantly on the sports track. According to Anta and Lining 2019 earnings report, the two battalions have increased significantly in that year.

"2012 is a watershed. Before that, the channel wins. After 2012, the brand and the advantage of the layout of the electricity supplier are beginning to show. However, the diversity of the birds at that time led to the downfall of the main business." In May 8th, Mr. Li, who was close to the footwear industry, told the times weekly reporter.

Unlike Anta, Anta has chosen a new direction of single focus, multi brand and all channels. While focusing on the main brand, the company has gradually upgraded its brand influence with the strategy of Internet + customer experience.

You know the importance of the main business. Last year, the company adjusted its long-term strategic plan to "return to the main business", and invested 128 million yuan to buy some distributors' channel resources.

"No matter how the birds change their business models, whether they can drive their profits in 2020 is still the key, but according to the state of the report in 2019, the 2020 will not be profitable and the market will be closed." In May 8th, Cheng Weixiong, founder of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., told the times weekly reporter.

Cheng Weixiong said that if the "noble bird" can now shelve the debt dispute, it will be fine to do well in the 345 line market according to this volume. After all, there are more than 400 outlets in the northeast, North China and southwest China from the point of view of the distribution of birds and birds, while there are no more than 260 outlets in Central China, East China, Southern China and Northwest China.

In 2020, whether the bright birds or birds that swayed in the wind and rain will still be bright or dark?