Many apparel listed companies choose to sell assets, what pressure and "power" behind it?

This year, especially since the second half of the year, the listed companies of Guirenbi, Yagor, Hermes Group and other apparel sectors have more active actions to sell assets. Behind these actions, some common development trajectories of these apparel enterprises are reflected.
Valuable Birds Sale Assets & ldquo; Slimming & rdquo;
On Dec. 11, Guirenbi announced that 50.01% of Hubei Jiezhi Sports Industry Development Co., Ltd. would be transferred by RMB 300 million. In the announcement, Guirenbi said that the company has paid over 1.6 billion net debts (including principal and interest) since the beginning of 2018, which has had a significant impact on the company's pre-established strategy. In 2016, the company purchased Jiezhi Tour and famous shoe warehouse network technology Co., Ltd. Jiezhi Tour and famous shoe warehouse are the offline entity retailers and online operators of many famous international sporting goods brands. The company originally planned to launch new retail business through the cooperation of Jiezhi Tour and famous shoe warehouse, and to push its own noble bird, AND1 and PRINCE brands to the market through brand-new retail. However, the centralized payment of debt occupies the operating funds of the business. At the same time, it is difficult to carry out the new retail business under the non-autonomous brand which can not control the supply chain link, which results in the hindrance of business synergy, the slowdown of strategic layout and the emergence of the risk of sports industry layout.
Guirenbi said that since 2017, Jieshi has opened a number of large-scale aggregate stores located in the core business district, resulting in rising costs and costs, and the sales atmosphere of new stores has yet to be nurtured. Its performance ability can not be significantly improved, which will further dilute the overall performance of listed companies. Therefore, it is not conducive to the financial structure of the company to continue to hold the equity of Jieshi Tour. The transaction is expected to result in an investment loss of about 130 million yuan this year, which will have a significant impact on the company's net profit this year.
The noble birds frequently sell their assets in the second half of the year. On August 1, Guirenbi announced that it would transfer 37% of the equity of Kang Mei Si (Beijing) Sports Management Co., Ltd. and 37% of Kang Mei Si (Beijing) Sports Consulting Co., Ltd. to Jinjiang National Sports City Co., Ltd. with the transfer amount of 135 million yuan and 8114.2 million yuan, respectively. On August 6, the company issued a further announcement that it intends to transfer 13.66% of Hupu Sports to Shanghai Dingdian Asset Management Co., Ltd. at a transfer price of 273 million yuan. All the money received from the transfer will be used to repay the principal and interest of the loan to Quanxiang.
While selling assets frequently, VIP said it would continue to focus on its main business and add new retail sales. On October 16, Guirenbi announced that it had signed a strategic cooperation framework agreement with Jingdong. In the future, the two sides will cooperate in brand operation, intelligent logistics and innovative business, and build a model of & ldquo; unbounded retail & rdquo. According to the third quarterly report of Guirenbi in 2018, the company's revenue in the first three quarters was 2.302 billion yuan, down 0.52% from the same period last year, and its net profit attributable to shareholders of listed companies was 16.5591 million yuan, down 89.14% from the same period last year.
Jagor & ldquo; Selling & rdquo; Financial Assets
Nov. 15, Jagor announced that from Sept. 7 to Nov. 15, 2018, the company sold 2.6157 million shares of startup software, with a transaction value of 52.8724 million yuan. The total transaction amount of the company's financial assets disposal is 1.422 billion yuan, accounting for 5.83% of the audited net assets at the end of 2017, generating investment income of 65.933 million yuan and net profit of 49.4545 million yuan (unaudited), accounting for 16.67% of the audited net profit in 2017. Nov. 20, Jagor reissued the announcement that from Nov. 16 to Nov. 20, 2018, the company sold 2.2383 million shares of venture software, with a transaction value of 44.3968 million yuan, accounting for 0.18% of the audited net assets at the end of 2017, generating investment income of 40.184 million yuan and net profit of 30.1382 million yuan (unaudited), accounting for 10.16% of the audited net profit in 2017.
Jagor has sold financial assets several times this year. The announcement shows that from January 1 to January 22, 2018, Yagor sold Pudong Development Bank and Ningbo Bank's convertible bonds and other financial assets for a total amount of 556 million yuan; from January 23 to April 12, the company sold Pudong Development Bank and Ningbo Bank's convertible bonds and other financial assets for a total amount of 1.958 billion yuan; from April 13 to September 6, the company sold CITIC shares and Ningbo Bank. Convertible bonds and other financial assets, the transaction amount is about 228 million yuan. Yagor said that the company is adjusting its investment ideas, gradually transforming from financial investment to industrial investment and strategic investment, focusing on large consumption, large finance and large health areas in the investment layout, and bringing returns to the company and investors through the adjustment of investment structure. In the apparel business, Yagor said that the company will continue to implement the strategy of brand diversification, and start the intelligent transformation of shirts and fashion shops. The new self-operated outlets are mainly brand collection stores. The future goal is to build & ldquo; 1000 compound stores, concept stores and flow stores with annual sales of 10 million yuan & rdquo.
According to Jagor's quarterly report of 2018, the company completed 4.732 billion yuan of revenue in the first three quarters and realized 2.341 billion yuan of net profit attributable to shareholders of listed companies, which decreased by 35.91% and 12.58% respectively compared with the same period last year. Among them, the textile and apparel sector completed business income of 3.76 billion yuan, an increase of 14.96% over the same period last year, and realized net profit of 606 million yuan belonging to shareholders of listed companies, an increase of 33.54% over the same period last year. At the same time, the company also predicted that the net profit of the whole year of 2018 would increase more than 10 times over the same period of the same year. The reason is that the company calculated the impairment loss of CITIC's share assets by 3.308 billion yuan in 2017 and the impairment loss of CITIC's share by 2.0 billion yuan in January-September 2018.It is estimated that CITIC's impairment loss of assets will decrease significantly in 2018.
Hermes Group & ldquo; Sales & rdquo; Armani
On November 27, Hermey Group announced that its second-level wholly-owned subsidiary, Shanghai Oulan and its second-level holding subsidiary, Chunqiao Fashion, were planning to sign the Asset Acquisition Agreement with Shanghai Armani. Shanghai Oulan and Zhenqiao Fashion plans to sell part of its Armani brand inventory and related fixed assets to Shanghai Armani at a transaction price not higher than RMB 210 million. After the sale of the assets, in addition to the interim period agreed by the two sides and the continued sale of the remaining Armani brand inventory, Shanghai Oulan and Chunqiao Fashion will no longer carry out new business operation of the Armani brand.
Hermes Group said in its announcement that Amani's business operation has not achieved the expected results since the acquisition of 100% stake in Shanghai Oulan and 80% stake in Chunqiao Fashion. The sale of assets will help ease the relatively tight capital flow of the company's business operations. The two subsidiaries have begun to expand other light and luxury fashion brands to meet the needs of young international brand consumers. In addition to continuing to open new stores in first and second-tier cities such as Shanghai, Shenzhen, Guangzhou and Hangzhou, they will also set up new Autley in third and fourth-tier cities where international brands are relatively scarce. S and other types of discount stores. The company will focus on high-end quality consumer areas and expand business cooperation with international high-end brands. The purpose of the proceeds from the sale of assets is mainly to supplement liquidity. Selling part of the Armani stock involves 73 stores, which will have an impact on the operation scale of the company's commercial sector. This will lead to a large-scale reduction of Shanghai's Oulan and Junqiao fashion stores, which will affect the company's operating performance, and will increase the company's Extra-Business income in 2018 and 2019. According to the third quarter report of Hemei Group in 2018, the company's business income in the first three quarters was 1.589 billion yuan, down 15.83% from the same period last year, and the net profit loss attributable to shareholders of listed companies was 250 million yuan, down 31.81% from the same period last year.
In announcing the sale of assets, Hermes Group announced the same day that its second-level wholly-owned subsidiary, Shanghai Oulan, and Italian companies MSGM and PAOLONI recently signed the MSGM Fashion Store Opening Agreement. MSGM authorized Shanghai Oulan to open and operate MSGM Fashion Shops and sell products with MSGM brand trademarks within the period of the agreement. Information, MSGM is an Italian brand founded in 2008, focusing on the design and production of fashion avant-garde men and women's daily clothing. Its customer base is mainly young consumers under 35 years old, positioned as high-end young fashion brand. MSGM currently has about 500 brand aggregation stores in the world, mainly distributed in foreign markets. Hermey Group said that in the future, the company will expand its light luxury fashion brands with relatively high inventory turnover to cater to the consumption positioning of the mainstream young groups.
Jiumuwang Disposal of Financial Assets
On September 26, Jiumuwang announced that Jiusheng, a subsidiary company, wanted to properly dispose of its financial securities shares. According to the announcement, in December 2014, Jiusheng invested 184.76 million yuan in Caitong Securities with its own capital. On October 24, 2017, Caitong Securities listed its A-share shares for the first time. According to the regulations of the Company Law, the Securities Regulatory Commission and the Shanghai Stock Exchange, Jiusheng Investment's Caitong Securities Shares will be listed and circulated on October 24, 2018. Up to now, Jiusheng has 62 million shares in Caitong Securities, accounting for 1727.75% of the total equity of Caitong Securities. According to the closing price of September 25, 2018, the total market value is 575.98 million yuan. Jiumuwang said that Jiusheng's shares in Caitong Securities are not closely related to the company's main business. This disposal can revitalize the stock assets, recover the investment funds, guard against the risks brought by market uncertainties, and bring certain investment returns to the company.
On October 31, Jiumuwang issued a progress announcement on the disposal of financial assets. The announcement showed that Jiusheng Investment sold 25.44 million shares of Caitong Securities from October 24, 2018 to October 30, 2018, with a total turnover of 187 million yuan, accounting for 3.51% of the audited net assets belonging to shareholders of listed companies on December 31, 2017. After deducting costs and related taxes and fees, it realized the net income of investment. The profit is 95.5923 million yuan, accounting for 19.35% of the company's audited net profit attributable to shareholders of Listed Companies in 2017. As of October 30, 2018, Jiusheng had 36.95 million shares in Caitong Securities.
Jiumuwang's quarterly report of 2018 shows that the company realized 1.921 billion yuan in revenue in the first three quarters, an increase of 7.74% over the previous three quarters, and realized 350 million yuan in net profit attributable to shareholders of listed companies, an increase of 1.9 billion yuan over the previous three quarters..86%.
Search Yute Transfer Yishuo Dress
On June 19, Souyu issued a special announcement. On June 16, the company signed the Investment Transfer Agreement with Xiamen Junnong Investment Management Co., Ltd. and Hong Zhonghai, Guangzhou Yishuo Garment Co., Ltd. and decided to transfer 100% of the shares of Guangzhou Yishuo Garment Co., Ltd., a wholly-owned subsidiary of the company, for RMB 58 million. After the completion of the transaction, Soyut will no longer hold shares in Yishuo apparel. On August 15, 2014, Souyute and Shengshuang signed the Agreement of Increasing Capital and Share in Guangzhou Yishuo Garments Co., Ltd. to increase the capital of Yishuo Garments by 57 million yuan. After the completion of the capital increase, Souyute and Shengshuang signed a 95% share of the registered capital of Yishuo Garments Co., Ltd. Yishuo Garments has the France ELLE brand women's wear and ELLE Girl brand girls'wear and accessories in China (including Hong Kong, Macao) operation agency.
In the second half of 2015, the company began to implement strategic transformation and upgrading to develop into supply chain management, brand management, creative design, business factoring and other businesses, aiming to build the company into a comprehensive service provider for the fashion life industry, Soyut said in the announcement. This transaction is based on the company's development strategic planning and business layout arrangements, will have a positive impact on the company's operating performance, is expected to generate a net profit of 85.52 million yuan this year.
Search for the third quarter of 2018 shows that the company realized 15.215 billion yuan in revenue in the first three quarters, an increase of 20.85% over the same period last year, and realized 563 million yuan in net profit attributable to shareholders of listed companies, an increase of 4.12% over the same period last year. The company also expects net profit of shareholders of listed companies to be 582 million to 674 million in 2018, with a year-on-year change of - 500% to 10%.The reason is that in the second half of the year, in order to adapt to changes in the market environment, the company adjusted the speed of supply chain business development, which slowed down the supply chain business.
The pressure behind the sale of assets by apparel listed companies and & ldquo; Power & rdquo;
Compared with many apparel enterprises, such as ldquo, buy-buy-rdquo, and purchase of assets, the number of apparel listed companies announcing the sale of assets is relatively small, and their actions are relatively active, mainly the noble bird, Jagor, Hermey Group and so on. In the second half of the year, noble birds successively sold their shares in Hupu Sports, Kangmeisi Sports and Jiezhi Tour, while Hemei Group sold part of its Armani brand inventory and related fixed assets to Shanghai Armani. Both companies said in their announcements that the company was facing financial pressure and capital flow shortage, and selling assets could ease the pressure on the company's capital. This year, the performance of these two enterprises has been declining obviously. To a great extent, divesting the assets with higher operating costs can be regarded as reducing the burden of enterprises - ldquo; hemostasis - rdquo; action, the so-called long pain is better than short pain, which is a normal choice for enterprises under operating pressure. Moreover, these two enterprises have been quite active in asset purchasing before, and these sales actions can also be regarded as an adjustment and revision of the investment behavior of enterprises & ldquo; rdquo;.
As for the sale of financial assets by Yagor and Jiumuwang men's wear enterprises, they are more inclined to investment. Yagor has its own financial investment business, and these actions are part of its business operation. The company said that it will gradually transform from financial investment to industrial investment and strategic investment. For Jiumuwang, the reason for its sale of financial assets is that it is not closely related to the company's main business, so selling can bring some investment returns. The garment business performance of both companies has maintained growth momentum this year.
Nevertheless, whether it is VIP Bird and Hermes Group, Jagor and Jiumuwang, or even Soyut, who sells apparel assets and further transforms to new business, at the same time, it expresses in varying degrees that it will further turn to the main business & ldquo; focusing on & rdquo; optimizing the operation of main business assets or coding the main business. Generally speaking, from the perspective of the industry as a whole, there are not too many cases of stripping off the business assets of the sellers for strategic transformation in the apparel listing sector this year. For listed companies, whether buying or selling assets in the capital market is normal trading behavior, and in the process of buying and selling, apparel listed companies that can better optimize business structure, enhance core business and improve asset returns are more likely to be recognized and affirmed by the capital market.