Armani'S Bad Reputation Results In Abnormal Performance And Supports Leica Development.

In November 1st, Xu Xiang, a private big man, was arrested in his "white coat". Careful netizens noticed that Xu Xiang wore the coat of Armani, the world's leading luxury brand.

Because of the attractiveness of the brand, high-end consumers are eager for Armani, and even the listed companies are full of fans.

At the beginning of this year, DQ shares (600694, closing price of 34.55 yuan) bought Armani's sales agent in some parts of China through high price mergers and acquisitions.

Unfortunately, in the short term, DQ shares did not wear Armani's fashion.

In October 28th,

The three quarterly report was released. In the first three quarters, the company achieved net profit of 636 million yuan, down 38.17% from the same period last year.

In the first half of this year, the company's net profit has reached 615 million yuan, which means that the company achieved a profit of only about 20 million yuan in the third quarter, which is not consistent with the previous operation of the company.

In this regard, the reporter noted that in the three quarterly report, the big business shares were only interpreted as "loss of goodwill impairment".

Since then, under the "forced" letter of the SSE inquiry, the company finally disclosed the incident to the outside world in November 3rd.

It turned out that all this stems from the huge losses of Lycra industry.

It is worth noting that in the initial purchase evaluation report, Lycra expects net profit of 16 million 400 thousand yuan in 2015.

However, this year 1~9 month, Lycra net profit is a loss of 67 million 900 thousand yuan.

DQ shares said it was due to a large number of newly opened shops according to the company's requirements.

Well,

Why do we spend a lot of money on the acquisition of Lycra?

In this regard, DQ shares said in a reply to the SSE in November 3rd that the Lycra has 7 brands from Italy Giorgio group to Armani Jeans under the Armani group of Italy, and has exclusive sales rights for 10 years in the three northeastern provinces and Shandong, has a mature management and sales team, owns more than fifty direct shops, and has an international brand which is urgently needed by the company stores.

The company will quickly open its stores after acquiring its shares, and expects to add more than 40% stores in 2015 alone.

Play a driving role.

It is worth noting that after the acquisition of Lycra gated shares, DQ shares provided huge financial support to them.

As of September 30th, the listed company provided $192 million in support for the company, and the guarantee amount was 720 million yuan, and the actual usage amount was 242 million yuan.

In view of the fact that Lycra's business performance in the first three quarters was not as good as expected, DQ shares conducted a impairment test on Leica's reputation, and decided to prepare for its impairment allowance of 220 million yuan, affecting the net profit attributable to the parent company by 165 million yuan.

Statistics show that Lycra was founded in October 22, 2002, and is the first agent to represent Armani brand in China.

The company has gradually developed into the most professional international luxury sales management company in the north of China and the largest luxury goods agent in the East.

In 2014, the company achieved operating income of 295 million yuan, and net profit was 678 thousand and 500 yuan.

In February this year, DQ shares bought 55% stake from Lin Xiangwei.

At that time, the valuation value of the underlying assets was 169 million yuan, which had a small premium compared with the book value of the net assets of the company.

But the final purchase price of DQ shares was as high as 313 million 500 thousand yuan.

In the short term, the adverse impact of Lycra has not ended.

Big business shares said that Lycra may have an impact on the company's fourth quarter financial data. It is estimated that leiqun's provision for impairment of intangible assets in the four quarter will be 143 million yuan, which will affect the net profit of joint-stock companies by 108 million yuan, and the net profit attributable to the parent company will be reduced by 59 million 150 thousand yuan.