The Suspension For Half A Year, Finally Decided To Resume Trading.

Suspension for up to half a year

The shares finally decided to resume trading.

Before the resumption, the production

The company has announced the purchase of medical beauty assets announcement and non-public offering program.

The management of the company also explained to investors in detail its "pan"

The strategy of industrial interconnected ecosystem.

However, even if there are many securities firms, such as the strategic platform of the group, the investors in the market obviously do not approve the company's plan.

In June 20th, the stock price remained unchanged on the first day of the resumption.

In the acquisition of half a year's suspension, the stock was originally intended to acquire the assets of the fashion e-commerce industry.

But the takeover failed and it decided to spend 327 million yuan on the acquisition of four medical beauty companies.

The group said it wanted to buy it with its own funds, but there was no indication that the company had enough cash to pay. In the first quarter of this year, the cash balance of the bank was less than 200 million yuan.

The plan is not just that, but it also plans to invest 1 billion 80 million yuan to build a medical beauty service network construction project and aka brand marketing network construction project.

These capital expenditures need to spend at least 1 billion 400 million yuan in cash.

Even considering the bank's financial capital of 359 million yuan on its book, the funds allocated by the group are only about 500 million yuan.

Obviously, only with external financing can these capital expenditures be supported.

Therefore, the stock company clearly stated to investors that it was ready to issue shares to raise funds 900 million yuan to support the implementation of this strategy.

Obviously, this will dilute the current shareholders' income level, at least in a short time.

Under the strategy of "Pan fashion industry interconnected ecological circle", we are ready to build 3 8000-10000 square meters comprehensive medical beauty hospitals in the next two years, open 30 medical beauty clinics of 1000 square meters, and set up 150 Akabon flagship store and performance store for the brand of children's wear.

This expansion is similar to the massive expansion it promised at the beginning of the IPO launch in 2011.

Landform shares landed on the A share capital market in 2011.

According to the prospectus, the company intends to use the funds raised 580 million yuan to open 215 new stores, and is ready to optimize the original part of the shop.

After doing so, the company actually invested only 240 million yuan, less than half of the budget of the money raised at that time.

The rapid expansion of the number of stores did not bring business efficiency and efficiency improvement to the company, but it caused a serious situation of rising inventory level.

The company's stock rose from 269 million yuan at the end of 2011 to 548 million yuan at the end of 2012.

After that, the company's inventory remained largely at that level.

The net asset yield of the company slipped from 9.76% in 2011 to 3.2% at the end of 2015.

Sales net interest rate fell by 18 percentage points to 6.51%.

Although there is no evidence that this time the company will raise funds like the previous IPO, expand blindly and run into a difficult position, the past fact still reminds investors that there is reason to doubt this new issuance plan: whether this business strategy depends on the large-scale expansion of funds and the expansion of the storefront will succeed in the future.

Moreover, compared with the clothing industry, the company's core management and actual controller Shen Dongri and Shen Hua siblings do not have more experience in the medical beauty industry.

Investors see not only this point from the announcement of the shares but also their doubts over the past two years.

In the past two and a half years, the company has been on the way to buy.

However, many of them ended in failure.

Apart from setting up subsidiaries or increasing capital, there are altogether 9 matters for the company to make major pactions.

This includes the failure of the non-public offering of shares in 2015, the termination of the acquisition of joint international equity, the July 2015 investors are not clear about the termination of the purchase of the paction target, and the purchase of the fashionable e-commerce industry related assets in the suspension, all of which ended in failure.

The failure of the paction path will inevitably make people wonder if their takeover or strategic decision is sloppy, and whether it has been fully demonstrated before planning. No matter whether the answer is yes or no, investors have the right to question whether the project invested by the current non-public offering stock raising fund has been seriously demonstrated.

In addition, the "star Wardrobe", which spent $7 million 500 thousand on investing in the company, is suffering from cash flow.

"Star Wardrobe" investment project has been regarded as an important aspect of the stock, and has helped boost the company's share price.

In fact, the group's deliberate pursuit of business pformation is largely due to the dilemmas caused by the failure of IPO expansion.

The garment company established in 2006 has always portraged itself as the leading brand of high-end women's clothing in China, and its benchmarking brands include Baozi and so on.

According to the company's financial report, the business share is ranked five in the domestic market with its brand name, Rhine and Zhuo Ke.

Over the past few years, the operation of the group has been greatly affected by the economic downturn.

The net profit of the company dropped to 74 million yuan in 2015, while in 2011, the company's annual net profit was as high as 210 million yuan at the beginning of the listing.

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In fact, if we get rid of financial returns, the business data of Rand will be even worse.

In 2015, in the net profit of all the 74 million yuan, the profit from financial management accounted for more than 60%, and the amount of financial income was about 45 million yuan.

In the early 2011 and 2012, the operating profit mainly came from business operations.

The following table is as follows:

In 2011, according to an analysis report on the development of China's high-end women's clothing brand released by the China National Business Information Center, the company put forward an optimistic estimate of the future business development and decided to expand in a large scale.

In 2012, the successful listing of the group continued to open 133 stores across the country, and its clothing inventory increased from 760 thousand at the end of 2011 to 1 million 230 thousand at the end of 2012, and the figure increased to 1 million 290 thousand at the end of 2015.

The average single store inventory increased from 1965 at the end of 2011 to 2652 at the end of 2015, an increase of more than 30%.

Today, the expansion of the past has been aggressive and unsound.

As sales decline, the company's inventory gradually pformed into the loss of enterprises.

The open financial information shows that the stock price drop proposed by the group is more than 110 million yuan at the end of 2015.

According to the inventory balance, 30% of the new inventory in 2012 has been plated into the company's losses.

Judging from the past performance of the group, we rely on a bigger story to open more stores to issue more shares to raise more capital, and there is no need to worry too much about the actual use and efficiency of the funds.

In 2011, the net proceeds of the listing were 1 billion 650 million yuan. Even if the funds were not considered, the IPO raised 850 million yuan, and nearly 40% of them changed their original commitments.

So this time, will the ambitious opening plan put forward by the "Pan fashion industry ecosystem" be the same as before?