Tian Chong Shoe Industry Pressure On The Stock Market Is Not Outstanding, Or Face Change

Less than p days ago, the first public offering prospectus issued by Guangzhou Tian Chuang fashion shoe Limited by Share Ltd (hereinafter referred to as "Tian Chuang shoes industry") appeared in the pre disclosure information of the SFC. Following the successful listing of BELLE, Daphne and so on, another shoe company that applied for the first time.

< /p >

< p > however, under the macroeconomic downturn and the shoe retail downturn, the net profit growth of the industry has slowed down, and the stock is huge, which brings many uncertainties to the company's successful listing.

< /p >

< p > < strong > net profit growth slowed down < /strong > < /p >

< p > Tian Chong fashion is mainly engaged in R & D, production, distribution and retail of women's leather shoes.

Liang Yaohua and Li Lin indirectly held 25.15% of the total share capital of the company, and signed the concerted action agreement to hold the total share capital of the company before issuing 50.30%, which is the actual controller.

< /p >

< p > according to the key survey report of consumer goods released by China industry and business information publishing center (CIIIC), in 2013, the brand of "KISSCAT" of the Tian Chong footwear industry has a 3.79% share in the middle and high-end market, and the brand sales revenue is sixth in the female leather shoes products.

< /p >

< p > it is worth noting that the overall operation of the footwear retail industry is not ideal.

Foshan shoe Limited by Share Ltd (002291, SZ) lost its net profit in 2013, and the shoe industry of Tian Chong was also unlucky to escape in 2013.

< /p >

< p > 2011, Tian Chong < a href= "//www.sjfzxm.com/news/index_c.asp" > footwear industry < /a > revenue 1 billion 54 million yuan, 2012 and 2013 respectively 1 billion 292 million yuan and 1 billion 510 million yuan, the growth rate is 22.50% and 16.88% respectively, the growth rate obviously slowed down; 2011 to 2013 attribution net profit respectively was 105 million yuan, 123 million yuan and 108 million yuan, 2012 and 2013 growth year were 17.12%, -12.00% respectively.

< /p >

< p > strong > a href= < //www.sjfzxm.com/news/index_c.asp > inventory < /a > great pressure < /strong > /p >

< p > for the predicament faced by the business environment, the Tian Chong shoe industry stated in the declaration that if the macroeconomic situation of China has a major adverse change, resulting in a downturn in the retail industry, it will have an adverse effect on the company's operating performance. The company has a risk of a 50% decline in operating profit or loss in the current year.

< /p >

< p > huge inventory makes the shoe industry under great pressure.

Statistics show that, at the end of 2011, the end of 2012 and the end of 2013, the stock carrying value of Tian Chong footwear industry was 397 million yuan, 450 million yuan and 479 million yuan, respectively, occupying 44.36%, 40.91% and 36.25% of the total assets of the same period, although the proportion has been decreasing year by year, but the total amount has continued to rise, and the inventory pressure is still huge.

< /p >

< p > for the reasons for more inventory, the industry claims that the balance of inventory, especially inventory commodities, has increased year by year at the end of the reporting period. The main reason is that during the reporting period, the number of store owners has been expanded rapidly in order to stabilize the market, resulting in a larger increase in inventory items during the reporting period.

< /p >

< p > < strong > > a href= < //www.sjfzxm.com/news/index_c.asp > accounts receivable < /a > accounted for higher than the same industry < /strong > /p >

< p > in addition to facing the inventory pressure, the Tian Chong shoe industry also has to face the problem of higher accounts receivable.

< /p >

< p > prospectus shows that in 2011, 2012 and the end of 2013, the book value of the accounts receivable of the footwear industry was 177 million yuan, 257 million yuan and 250 million yuan respectively, accounting for 24.01%, 28.83% and 25.19% of the current assets respectively.

Higher than the same industry BELLE international, Daphne international, Saturday, 1000 international, AOKANG international accounts receivable accounted for 20.66% of the current assets ratio, 19.55% and 19.20%.

< /p >