Sequoia Capital Substantially Reduced PEAK Sports

< p > > a href= "//www.sjfzxm.com/news/index_f.asp" > PEAK sports < /a > (01968.HK) is encountering troubled times.

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< p > the latest information of the stock exchange shows that PEAK sports has recently reduced 54 million 4 thousand and 700 shares outside the Sequoia Capital market, with an average price of HK $1.27 per share, involving HK $68 million 586 thousand, and its position from 6.22% to 3.65%.

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Before 2009, PEAK group received nearly $60 million of investment from Sequoia Capital China fund, Jian Yin international and Lenovo investment three private equity investment institutions. After financing, three strategic investors accounted for about 24% of P shares.

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Less than P, Sequoia Capital has reduced PEAK's value, or based on the downturn in the sporting goods industry and the decline in PEAK's performance.

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In terms of terminal channel, PEAK has closed more than 1000 stores at the end of the three quarter of this year compared with the end of 2011, becoming the largest number of sports brands in China at the end of the P quarter.

In the first half of this year, PEAK's net profit fell sharply by 43.3%, which was only 240 million yuan. The average turnover of retail outlets in China and the average turnover per unit retail area decreased by 30% and 34.3% compared to the same period last year, and the average stock turnover days increased from 49 days to 86 days.

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In the local sports brand, PEAK has always been in the forefront of the internationalization route. PEAK's largest overseas market is in the Middle East. P

But in the Chinese market, PEAK is based on two or three line cities.

A long-term concern about sports brand industry to "First Financial Daily" said that PEAK's channel capability in China is not strong.

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< p > however, PEAK chairman Xu Jingnan recently told the media that from the second quarter of next year, PEAK will adjust the discount to domestic dealers, the company will supply 65% off, and the retailer will sell 57% off (50 percent off), hoping to pfer profit space to promote the development of the company.

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< p > PEAK's investment in R & D has also been relatively low.

Last year, PEAK's R & D costs accounted for 1% of the total turnover, but also far below the average level of R & D investment of 2.4%.

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Compared with international brands such as Nike and Adidas, P has never abandoned high and long-term investment in research and development. The development of single Nikeshox is less than 16 years. The development of a href= "//www.sjfzxm.com/" target= "_blank" > shoes < /a > has been spent.

At present, Nike pays more than 4% of its annual income to product development.

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In addition to that, P has recently heard rumors that PEAK has "reorganized and reorganized Li Ning Co with a well-known global investment bank", and the rumor was denied by both sides.

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There is still a lawsuit in progress in PEAK's headache, P.

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P, < a href= "//www.sjfzxm.com/news/index_c.asp" > PEAK < /a > the activity service provider Mo new business consulting (hereinafter referred to as "Mo Xin") sued PEAK not to pay the service fee according to the contract, while PEAK counterclaim that the new company did not provide details of the specific expenses, and therefore refused to pay the related expenses.

The case has been held for many times since 2010, and no result has yet been made.

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