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Lining Is In The Mire Of Loss. Why Does The Stock Exceed 1 Billion?

2014/8/18 10:45:00 44

< a href= "http://sjfzxm.com/news/index_cj.as" > < < /a > > the scene of the old prince's bird nest in the 2008 Olympic Games has become a brilliant footnote of Lining (Lining store), so abandoning the sponsorship of the national gymnastics team has become an important footnote in recent years.

by "distribution partners"?

Less than P, while Anta, Anta and PEAK are on the way to recovery, Li Ning Co has handed in a surprising pcript of the mid-term exam again.

August 14th, Li Ning Co released the 2014 China Daily. As of June 30, 2014, the loss in the first half of the year expanded from 184 million yuan in the same period last year to 586 million yuan, and the loss increased by 2.18 times.

reporter access to relevant information found that this is the massive loss of Li Ning Co performance after the huge loss of nearly 2 billion of Li Ning Co in 2012.

inventory increase and bad debt appropriation again become the main reason for the drag on performance.

Li Ning Co semi annual report shows that as of the end of June, Lining inventories increased from 942 million yuan at the end of last year to the current 1 billion 89 million yuan.

As regards the provision for bad debts, as at the end of June, the total provision for bad debts was 683 million yuan.

for Lining group's inventory progress, Jin Zhenjun, executive vice chairman and acting chief executive officer of Lining group, said that from the current company inventory, the company's old stock dropped by about 38%, of which nearly two years old inventory was cleared, only 1 remaining for more than 1 years, and the share of new products increased to 50%.

Jin Zhenjun believes that the new product will gradually bring support to the revenue, and the sales growth of new products has been the fastest.

Jin Zhenjun admits that some of its distribution partners are weak, accounting for about 10%, and they are not strong enough to cooperate with them.

aiming at the difficulties encountered in the pformation in the past two years, Jin Zhenjun said that the biggest difficulty is that the channel business problem is bigger than the imagination. There are such problems as weak retail capacity, weak resources and inadequate coordination. So in the fourth quarter of last year, Lining eliminated 4 dealers, and at the same time increased the proportion of self operated stores.

it can be confirmed that the sales channel of Lining brand is still shrinking.

Data show that as of June 30th this year, the total number of Lining brand stores was 5671, compared with the end of last year, a net decrease of 244, 52 dealers, compared with the end of last year, 3.

however, it is noteworthy that compared with Lining's low point wandering, the gloomy period of other domestic sports brands seems to be in the dawn.

The other two sports brand companies that publish semi annual reports have risen to varying degrees in terms of revenue and net profit.

The profit attributable to shareholders of Anta during the reporting period increased by 28.3% over the same period last year.

In August 14th, PEAK reported a 34.6% increase in profit attributable to shareholders during the period.

or will delay the recovery target /p >

"is now in the stage of pformation and pformation, and the effectiveness of pformation is gradually emerging. It takes time for performance to perform."

Lining, founder and executive chairman of the group, told reporters.

the slow reform of Lining group and the current situation of large number of stores can not be ignored.

Statistics show that, as early as 2012, the biggest drop in Li Ning Co's history, the company has begun to clean up channel inventory, improve supply chain, explore business mode three stages of radical reform and pformation.

for the progress of reform, Jin Zhenjun told reporters that the first stage has been completed, and the second most painful stages have gradually passed. The third stage pformation is mainly aimed at building sales platform and increasing sales growth.

However, the construction of the sales platform needs to invest a lot of money. In the period of the period, the company invested 182 million yuan in the expansion of channels and direct stores, as well as the construction of sports marketing and platform.

Jin Zhenjun also believes that the strategy of change will take three or four years to complete.

for the reform mode, Lining said that the reform of the company has its own rhythm and will not be affected by external environment.

He stressed that the intensity of the company's reform and pformation is very rare.

"P >" Li Ning Co reform is too slow, from 2012 to now two or three years to adjust the enterprise, can not keep up with the movement of brand operation rhythm, if the enterprise at such a speed of reform, enterprises or will be beyond the danger of other brands. "

Many industry insiders said.

data show that the cooperation between Li Ning Co and Chinese gymnastic team lasted for 23 years.

A few days ago, Anta replaced Li Ning Co as sponsor of China gymnastics national team.

however, it is gratifying to note that Jin Zhenjun told reporters that in the past two years (companies) focused on cash flow problems, the remaining inventory and channel problems have been solved by almost 90%. The remaining tails will be solved next, although it is not possible to predict how much bad debt needs to be provided, but there will be no such big provision as the first half of this year.

"because of the slow pace of Li Ning Co reform and pformation, this will definitely affect its planned rejuvenation plan."

An insider close to Li Ning Co told reporters.

December 2012, Li Ning Co announced that it would implement a large-scale one-time channel rehabilitation plan to solve the problem of excessive inventory.

Statistics show that in 2013, more than 90% of the dealers were involved in the recovery plan.

Less than P, however, only a year later, Li Ning Co once again welcomed the big jump in performance and had to be questioned by most businesses and investors.

"affected by this, the goal of Li Ning Co's revival plan may be delayed. From the current situation of the development of enterprises, the company's situation is still far from the target. According to the current development rate, it will take at least two or three years to achieve it."

Many interviewed insiders told reporters.