Home Textile Giant Power Business

Here world clothing shoes Hat net Xiaobian introduced to you is more like IPO: dislocation expansion, facing the home textile giant electric shock.

A family in Changsha loves bedding stores. More like 2012 and 2013, the average annual sales of outlets continue to decline. In 2013, the average annual sales volume of each store was 77 thousand yuan less than that of 2011.

After fuanna, Meng Jie home textiles and Luo Lai home textile, many people like home textile Limited by Share Ltd (hereinafter referred to as "much love") and quietly appear in the IPO pre disclosure list of the SFC, and love to be the fourth home textile listed company.

However, on the eve of the listing, many favorite performances have become increasingly powerful. At the same time, when the industry giant tried to sell electricity, they chose to continue to raise funds for the layout of the direct store, and its plan raised 170 million yuan for opening a direct store although the annual sales volume of the battalion store continued to decline during the reporting period.

When we like to choose the same three expansion methods as Fu Anna, Meng Jie home textiles, and Luo Lai home textiles, we neglect that the business environment has changed and ignored the impact of the new business model. Choose how much you like to go on in the old mode, can you successfully break through IPO?

Net profit fell on the eve of listing

In April 25th, they preferred to appear in the pre disclosure list of the SFC. They preferred the total number of shares to be issued not more than 30 million shares, and raised 280 million capital, which was planned to be listed at Shenzhen Stock Exchange.

By the end of 2013, there were 166 direct outlets, 1008 franchises and 1174 sales outlets nationwide, nearly half of which were located in Central China. The company's main products are "multi love" brand bedding products, located in the high-end market of the two or three tier cities, mainly for young consumer groups. In 2013, its operating income in 234 line cities was 770 million yuan, accounting for 94.7% of its operating revenue.

It can be seen from the prospectus that in 2013, much more business income increased by 19% compared with the previous year, but its net profit decreased by 25% compared with the previous year. At the same time, compared with the growth rate of 24% in 2012, the growth rate of revenue in 2013 also showed a downward trend.

The reason for the decline in net profit is due to the decline of the market. Much like in the prospectus, 2013, in the domestic economic growth slowed down, the company achieved a small increase in operating income, but due to labor costs, store rents and R & D spending growth and other factors led to faster growth in expenditure, resulting in a decline in profits.

However, faced with the same predicament, fuanna's operating income in 2013 was 1 billion 860 million, an increase of 4.89% over the same period, with a net profit of 315 million, an increase of 21% over the previous year. Meanwhile, Meng Jie home textile realized 1 billion 420 million yuan in 2013 and a net profit of 987 million yuan, up 18.55% and 70.91% respectively over the previous year.

　　 Imagined blue ocean market

The main goal of this public offering is to expand its marketing network.

I like to say that the purpose of "marketing network expansion project" is to expand the breadth and depth of the company's sales channels, enhance the company's control over sales channels, and enhance the brand image and overall competitiveness of the company.

I hope that through this project of raising funds, we will expand the coverage of our own sales network and speed up the penetration and occupation of the vacuum market in the two or three line city market. At the same time, we also want to avoid direct competition with other home textile brands in the first tier cities.

Many favorite plans to set up 152 Direct stores (cabinets) in central, southwest and northwest regions, including 2 display shops, 110 standard stores and 40 standard counters. Compared to 166 Direct stores at the end of 2013, the scale of its outlets has more than doubled since the completion of the project.

However, fuanna, Meng Jie home textiles, and Luo Lai home textiles have already been in the market layout of the two or three tier cities. For the central, southwest and northwest regions that prefer to raise funds, three listed companies also have a layout.

Fuanna has established a home textile production base in Nanchong, Sichuan, to seize the southwest market. In 2013, fuanna realized its operating income of 240 million yuan in the southwest, 210 million yuan in the northwest and 89 million 240 thousand yuan in the northwest.

In 2013, the total revenue of Luo Lai home textile in China, southwest and northwest achieved 590 million yuan.

Meng Jie home textile in 2013 in central, southwest and northwest achieved a total revenue of 860 million yuan, accounting for 60.6% of its main business, and Meng Jie home textile in the above three areas of revenue are rising.

Many fond prospectuses show that in 2013, they preferred to earn 440 million yuan in main business in Central China, accounting for 54.46% of the main business revenue. In southwest and Northwest China, its main business income is only 70 million 430 thousand yuan and 12 million 210 thousand yuan, compared with three listed companies, there is a big gap.

When the three listed companies have taken the lead in the two or three tier cities, they prefer to layout the two or three tier cities and avoid direct competition with other brands.

　　 Accounts receivable concentrated on single customers.

During the reporting period, the number of accounts receivable increased substantially. In 2013, its receivables amounted to 28 million 131 thousand and 800 yuan, an increase of 127.99% compared with 12 million 339 thousand yuan in 2012, while its 2013 revenue increased by only 1.75%. Signs of canal filling are obvious.

In 2013, besides the large increase in accounts receivable, the degree of concentration of accounts receivable was also higher. Among them, Jiangxi Li arrow International Trade Co., Ltd. (referred to as "Jiangxi arrow") accounted for the largest proportion, reaching 47.91%, accounting for almost half of the total accounts receivable.

Business information shows that Jiangxi arrow was founded in 2009 with a registered capital of 1 million yuan. During the reporting period, Jiangxi arrow has been the favorite customer for three consecutive years.

From 2011 to 2013, sales of Jiangxi arrow were 32 million 612 thousand and 500 yuan, 49 million 372 thousand and 900 yuan and 67 million 224 thousand and 200 yuan respectively. Sales of Jiangxi arrow sales accounted for the proportion of main business income, increasing from 5.06% in 2011 to 8.28% in 2013.

Much fond of explaining that the growth of accounts receivable at the end of 2013 was mainly due to the increasing expansion of marketing networks by Jiangxi's strong arrow and other strong franchisees.

But Xue Yong, a certified accountant of an accounting firm, told the Beijing News reporter that "accounts receivable change too much, and the proportion of single franchisees is too large. For the company, there is a certain risk and unreasonable."

Direct sales are not optimistic.

We hope that the expansion of the direct outlets can enhance its revenue. According to many favorite calculations, the annual sales revenue of the investment and sale project is 361 million yuan.

However, based on the comparison of the average sales performance of the 2009-2011 years' sales (the average sales performance of the stores), it was decided to use the sales data in 2011 and 2009 to 2011. In 2011, the annual sales of its stores and counters were 161 million 620 thousand yuan and 163 million 760 thousand yuan respectively. Much love did not provide the flat sales data of Direct stores in 2012 and 2013 during the reporting period.

Prospectus shows that from 2011 to 2013, the sales of direct outlets were 1 million 521 thousand and 900 yuan, 1 million 495 thousand and 500 yuan and 1 million 444 thousand and 900 yuan respectively, showing a downward trend. But at the same time, we can find that between 2011 and 2013, there were 20 more favorite outlets. The number of Direct stores has increased, and the revenue generated by direct outlets has been declining. The difference between the sales of direct outlets of the company can be imagined.

Judging from the performance of the listed home textile companies, 2011 is the watershed of the industry. From 2009 to 2011, it is a period of rapid development of the domestic textile industry. By 2012, the three companies' revenue has slowed down or slowed down.

In 2011, the revenue of Meng Jie home textile increased by 45.3% during the same period, but the revenue in 2012 decreased by 4.14%. In 2012, the growth rate of the household rose by 30.8% in 2012 and 14.4% in 2012.

Many preferred prospectus did not disclose the revenue in 2010, it can not compare its 2012 and 2011 revenue growth. However, the prospectus shows that compared with 2011, the average annual sales of outlets in 2012 and 2013 are in decline.

In the 2013 annual report, fuanna said that in the second half of last year, fuanna slowed down the opening speed of the terminal stores under the actual terminal cost, instead of focusing on the development of e-commerce business.

It is doubtful whether a favorite direct store can achieve the anticipated sales volume in 5 years.

Home textile giant power business

In June of this year, Home textile Sales of Taobao and Tmall are about 11 million 330 thousand yuan.

Over the same period, sales of Internet brand LOVO were about 26 million 530 thousand yuan, ranking third in Taobao beds.

Over the same period, sales of Meng Jie home textiles amounted to about 24 million 720 thousand yuan.

In the same period, Fuan was about 54 million yuan, ranking first in category sales in Taobao beds.