Depth independent penetration
The only constant is change!
Author: Wen Dao.
Editor: Coke.
Style: Ancient Road.
*: Shoucai - Shoutiao Institute of Finance and Economics.
There is no end to the trend, but there is no end to innovation.
Looking at the high-iteration clothing industry, the tide is becoming more and more drastic, and there are always prepared people in the big waves and sands.
On January 26, ST Guiren announced that it is expected that the 2023 annual results will be a loss, with a net profit of about -48.5 billion yuan.
You must know that in the first three quarters of 2023, the company's revenue will be 107.2 billion yuan, a year-on-year increase of 855%；Net profit -5523590,000 yuan, net profit after deducting non-6136730,000 yuan. Based on this calculation, the net loss in the fourth quarter reached 4About 300 million yuan, which can be called a big change.
On the evening of January 22, the company announced that Hu Jiajia applied for resignation as president, and Zhou Chengjian took over.
It is a good story for a son to inherit his father's business. However, the 7 years that her daughter Hu Jiajia has been at the helm is a little difficult to explain, according to Blue Whale Finance statistics, the company has accumulated a loss of 3.1 billion yuan. In August 2022, Meibang Apparel issued a document to do risk control management with the spirit of leaving a life and continuing life, and then comparing the input-output of turning losses into profits to adjust the strategy of financial profit and loss risk control mechanism.
The latest financial report shows that the company's main revenue in the first three quarters of 2023 is 83.7 billion yuan, down 1349%；Net profit attributable to the parent company was 4163790,000 yuan, deducting non-net profit -9610840,000 yuan.
It is gratifying to congratulate the hope of turning losses and stabilizing, but the decline in main revenue and the loss of non-net profit show that the company is still moving forward with a heavy burden and the prospect is still full of uncertainty.
Fortunately, in 2024, everything is new. Zhou Chengjian's appearance again, the huge loss in the quarter, what great changes can it bring to Meibang and Guirenniao? How will the two meet consumers again?
Selling a house and reducing the cost is very hard How much the core profit has improved
On January 29, 2024, Meibang released its 2023 annual performance forecast. It is expected that the annual net profit will be 59 million yuan to 85 million yuan, a year-on-year increase of 10717%—110.33% to achieve a turnaround.
However, the non-net profit was -3$8.9 billion to -36.3 billion yuan, although the loss narrowed by 53 year-on-year36%—56.48%, but still facing a large loss. And the non-net profit deducted in the first three quarters was -9610840,000 yuan, if this is calculated, the fourth quarter loss will be at least 2600 million yuan.
As of September 30, 2023, the net assets per share of Meibang Apparel were 0$11. Based on the annual estimated profit ceiling of 85 million, the company's net assets per share in 2023 will be about 0127 yuan.
Zhou Chengjian once said that Metersbonwe has been like a person in the past ten years, not only has there been a condition, but also a serious illness, and it is still in the process of treatment. Those who should take Chinese medicine should take Chinese medicine, Western medicine should take Western medicine, and the operation of this surgery will have a rest period after **, and it will be normal after that.
It's not too much of an exaggeration. Looking at 2011, the revenue of Meibang clothing was 994.5 billion yuan, just one step away from the 10 billion mark, and the net profit is as high as 12100 million yuan. In 2013, Metersbonwe had more than 5,000 stores nationwide, ranking first in casual clothing.
It's a pity that how bright it was was was to be in the future.
From 2018 to 2021, Meibang's clothing revenue was 767.7 billion yuan, 546.3 billion yuan, 381.9 billion yuan, 263.9 billion yuan. Net profit for the same period was 4036160,000 yuan, -82.5 billion yuan, -85.9 billion yuan, -46.8 billion yuan.
In 2022, Meibang's revenue will drop to 143.9 billion yuan, with a net loss of 8200 million yuan. Among them, more than 80% of the accounts receivable come from franchisees, and the provision for bad debts for more than 1 year has accumulated 7100 million yuan, and the provision for bad debts for more than 3 years has accumulated 3200 million yuan.
At the end of 2021, the number of inventory turnover days of the enterprise reached 2797 days, and at the end of 2022, it further increased to 3462 days. This has a huge impact on garment companies, high inventory not only occupies working capital, but also has the risk of bad debt impairment, reflecting the urgent need to improve the competitiveness of enterprise products and market discourse.
From 2019 to 2021, the asset-liability ratio of Meibang increased from 6802% soared to 8605%, total assets from 637.8 billion yuan fell to 510.3 billion yuan, net assets from 204 billion yuan shrank to 71.2 billion yuan.
As of the end of September 2023, the company's asset-liability ratio was 9009%。Among them, short-term borrowings are about 7$2.4 billion, notes payable and accounts payable of about 73.9 billion yuan, with total current liabilities of about 2.3 billion9.2 billion yuan.
For four consecutive years, Meibang began to continue to ** assets, such as the announcement in December 2023, it intends to use cash transactions to the store at No. 43, Dake Jia Lane, Jinjiang District, Chengdu, Sichuan Province, and the transaction price was finally determined to be 6800 million yuan.
According to public information, since October 2022, Meibang has made 4 consecutive real estate properties to Youngor**. The final transaction** negotiated by the two parties is 1900 million yuan, 1300 million yuan, 300 million yuan, 6800 million yuan, through the transfer of real estate Meibang clothing accumulated nearly 2 billion yuan.
At the same time, in the first three quarters of 2023, corporate R&D expenses, sales expenses, management expenses, and financial expenses all decreased by double digits year-on-year. Take the selling fee as an example, only 168.7 billion compared to 459.4 billion is directly less than 300 million.
From this, we will look at the expected turnaround in 2023, reduce costs and increase efficiency, and contribute a lot of assets, and there will be a question mark over how much the core profitability will improve.
For Zhou Chengjian and Hu Jiajia, 2024 may be a key year to determine the listing status of Meibang, and it is very important to improve the self-hematopoietic ability of enterprises and accurately grasp the pain points of customer needs.
Clothes are ugly and expensive
Mispayment misjudged something
Also on January 29, Meibang Apparel issued an open letter to all the top businessmen, and Zhou Chengjian, who returned to the company, analyzed the reasons for the loss of Meibang Apparel in the past few years, responded to the problems of product quality, cost and delivery time, and put forward a preliminary plan for the reform of the first chain.
In Zhou Chengjian's view, consumers evaluate the current products as ugly and expensive, which not only causes adverse social perception to the brand, but also leads to losses for enterprises year by year. In the future, Meibang Apparel will focus on improving the quality of the chain, reducing costs and increasing efficiency.
This is not the first time Zhou Chengjian has spoken out since his return. On January 22, "Meibang people" released Zhou Chengjian's "A Letter to All Employees". The letter also mentioned that it is necessary to use the digital management mechanism to solve the challenges of serious problems such as serious abnormalities in quality, cost, and delivery in the past few years.
It has to change. On January 30, the topic of the founder of Meibang responded that the clothes were ugly and expensive appeared on the hot search. Many netizens left messages and complained, "I never expected that Meibang only realized it now", "The design aesthetics have not kept up with the times, but it has not lagged behind", "The quality is not good, and it is expensive".
Objectively speaking, Hu Jiajia has been at the helm of Meibang since November 2016, and has not been conformist in corporate branding for 7 years, emphasizing youthful tonality, leaning towards young people in design, from a single brand to five major styles, and also moving closer to light luxury, striving to improve the brand, and inviting popular stars such as Guan Xiaotong and Huang Minghao to endorse; At the same time, the retail side continued to make efforts to launch a series of clothing in terms of national fashion and trendy cool.
But after some efforts, Meibang's performance is lackluster.
The reason for this is that it has not kept up with the rapid changes in the domestic business environment and consumption habits. Economist Song Qinghui once bluntly said that although the decline of Meibang clothing has the impact of the slowdown in the external economic environment, the root cause is the lack of innovative elements in products, and the problem of homogenization is very serious.
From 2019 to 2022, the R&D expenses of Meibang will be 10.9 billion yuan, 06.9 billion yuan, 06.9 billion yuan, 05.2 billion yuan. It is said that there is no future without innovation, especially in the ever-changing apparel industry, design, fabrics, functionality, etc., which are inseparable from high-quality research and innovation. R&D spending continues to shrink, how can enterprises achieve innovation-driven growth?
In 2022, Zhou Chengjian said in an interview that the problems encountered by Meibang in recent years have nothing to do with the market environment, but the company's own strategy is misaligned with the pace of the market to keep pace with the times.
In 2011 and 2015, under the tuyere of Internet and mobile Internet e-commerce, Meibang clothing chose to build its own ** and APP, but "Banggou" and "Youfan" failed to stand out in the fierce competition, which eventually led to the blockage of e-commerce strategy.
On the other hand, as of June 30, 2023, there are only 925 stores left in Meibang Apparel nationwide, including 26 directly-operated stores. Compared with the subversive period, it has shrunk by 8%, which is the pressure on the marketing channel side.
Wang Tingyan, an industry analyst, said that Meibang, which is accustomed to taking an unusual path, has never rejected the new trend, but has misjudged the strategic route. Too much attention is paid to the construction of the Internet platform itself, and the Internet is only a tool, and the key to obtaining the market lies in the product itself.
Fortunately, once again building online channels, Meibang did not take an unusual path, but chose the hottest live broadcast to bring goods.
In June 2023, Meibang Apparel has successively established two live broadcast e-commerce companies, namely Hangzhou Meitesi Digital Industry *** Zhejiang Meitesi Digital Industry *** Aiqicha shows that the two e-commerce companies are 100% owned by Meibang Apparel, and the legal representative and general manager are Zhou Chengjian.
Only by following the trend can we take advantage of the trend. It's just that it's still the same sentence, marketing is the face, and product power is the lining. Only the integration of the inside and the outside can truly call the new brand label, stick to the user, and then improve the hematopoietic power and core competitiveness.
In the first three quarters of 2023, the R&D expenses of Meibang Apparel will be 3438470,000 yuan, a year-on-year decrease of 2101%。
Why does the noble bird "fold its wings"?
Compared with Meibang's sticking to its main business, another well-known brand of the post-80s generation has begun to quietly withdraw from the original market.
In September 2023, the company announced that in view of the declining revenue and continuous losses of the sports shoes and apparel business since the judicial reorganization, and the increasingly fierce market competition, it will optimize and adjust the sports shoes and apparel business, and dispose of brand assets such as "Guirenniao" and "PRINCE" and other sports shoes and apparel related assets through including but not limited to licensing, ** leasing, etc., and gradually withdraw from the sports shoes and apparel business.
In other words, the noble bird that has been in the market for more than 30 years will withdraw from the sports shoes and clothing stage. Like Meibang, Guirenniao had more than 5,000 stores in its heyday, with many well-known brands such as "Guirenniao" and "Prince", which can be called a generation of "shoe kings".
Inventory of the fall of the "folded wings" of the noble bird, diversification has to be said. Such as 2015 2400 million yuan invested in Hupu Sports, and in 2016, it spent 200 million yuan to control a football agency in Spain, and then 38.3 billion yuan to acquire Hubei Jiezhixing, and later acquired the equity of a series of companies such as Famous Shoe Warehouse, Compass, and BOY.
The industry extends to Internet + sports, sports brokerage, sports insurance, sports games and other fields. It seems to be full of flowers, but in fact, these diversifications do not bring matching returns, but accelerate the change of performance.
From 2018 to 2020, Guirenniao's revenue increased from 281.2 billion yuan fell to 11$8.8 billion; Net profit was -6900 million yuan, -109.6 billion yuan, -38.2 billion yuan.
Fortunately, in 2021, revenue increased by 194% to 141.9 billion yuan, net profit increased by 19436% to 36.1 billion yuan. But in 2022, it will fall into a loss again, and its revenue will increase by nearly 49% to 21In the case of 0.8 billion, the net profit was a loss of 00.9 billion yuan.
On January 26, 2024, ST Guiren issued a notice that it is expected to have a loss in 2023 and a net profit of about -48.5 billion yuan. Non-net profit is about -49.5 billion yuan.
In addition to huge losses, the product experience should also be firmly entrenched in the quality control fence. Browsing the black cat complaints, as of February 1, 2024, Guirenniao has accumulated 77 related complaints, the number is really not much, but many questions focus on product quality and service, and the number of replies and completions of the company is only 5 and 4.
Making clothing, shoes and hats has always been the king of word-of-mouth, and professionalism and concentration are the most important. Looking at Li Ning and Anta at the same time, with their deep cultivation of their main business and the prohibition of diversification, they won market users little by little, and finally grew into the industry leader and the light of domestic products. What should the noble bird reflect on?
Transformation doubts
8. that was "hidden".800 million related party transactions
On January 23, 2024, the Fujian Securities Regulatory Bureau disclosed the decision on ST Guiren to take measures to order corrections and issue warning letters, involving 8800 million yuan related party transactions.
After investigation, Li Zhihua, the actual controller, chairman and general manager of ST Guiren, indirectly controlled 4 companies including Heilongjiang Chengyun Grain Yi Corn Purchase and Sales, are related parties of ST Guiren.
In 2021, 2022, and 2023, ST Guiren will have 02.4 billion yuan, 73.5 billion yuan, 1$2.1 billion.
Because Guirenniao had denied the above-mentioned related party transactions, this investigation also made the company face subsequent penalties for violating the letter disclosure.
As of February 1, 2024, the price of Guiren Bird ** is 096 yuan, has fallen below the 1 yuan line. Compared to 1. on January 22$28 fell by about 20%.
Looking at the wait-and-see sentiment, in addition to the disclosure of illegal real hammers, the derivative impact on the transformation of the main business is also a consideration.
Taking the first half of 2023 as an example, the main revenue of the grain business is 34.2 billion yuan, accounting for about 4788%, 2 for sneakers and clothing3.2 billion yuan, accounting for about 3243%。The grain business has become the largest main income of the enterprise.
The transformation can be so immediate, and it needs to start from 2021, when the noble bird that was in business difficulties began to reorganize, and finally Heilongjiang Taifu Jingu Network Technology Co., Ltd. took 4The investment of 1.7 billion received 2036% equity, and the other 4 natural person reorganization investors are more than 2800 million yuan, a total of about 14% equity.
According to public information, Li Zhihua is known as the "grain tycoon", and he owns a number of agriculture-related companies such as Taifu Jingu, Heilongjiang and Meitaifu Agricultural Development Co., Ltd., Qiqihar City and Meimei Grain Storage Group.
In July 2021, ST Guiren established a wholly-owned subsidiary, Jinhe Michenglai Agriculture, which is mainly engaged in grain wholesale business.
In the first half of 2023, Guirenniao has successively set up a wholly-owned subsidiary, Sichuan Rongcheng Jinhe Agricultural Science and Technology *** Jinhe (Qiqihar) Prefabricated Vegetable Industrial Park***
According to the 2023 semi-annual report, the company's rice brand "Jinhe" has covered more than 100 cities across the country and settled in more than 70,000 core stores, and is a partner of many large and medium-sized production and processing enterprises in China.
Guo Xing, an industry analyst, said that the above-mentioned concealment of related party transactions is not good news for Guirenniao, which is in a critical period of rebirth and transformation. It is inevitable that the outside world will examine the authenticity and development of the relevant business, and at the same time, a large number of related party transactions will also easily cause the actual controller to worry about the possibility of capital embezzlement of the listed company.
It is worth noting that the company's annual report in 2022 was issued a non-standard opinion by an accounting firm, and the Shanghai Stock Exchange issued a regulatory letter to Guirenniao. Coupled with the suspected concealment of related party transactions, it is inevitable that the outside world will doubt the future transformation trend of Guirenniao.
On January 18, an investor asked Guirenniao through the interactive platform, "If the company's 2023 annual financial report is issued with a qualified, unable to express an opinion or an adverse audit report, will the company face the risk of being terminated from listing?" ”
The company replied that the annual audit is currently progressing smoothly and is proceeding in an orderly manner. In addition, according to the relevant provisions of the regulatory rules, if the financial and accounting report of the most recent fiscal year is issued with an audit report that cannot express an opinion or a negative opinion, it will be subject to a delisting risk alert (*ST) and will not be terminated from listing.
What kind of annual report will be presented to investors, and all walks of life are waiting for the answer.
Seize every new opportunity
Wait for the spring flowers to bloom
The best time to plant a tree was 10 years ago, followed by now. This quote is from "Dead Aid" by Dambisa Moyo, an African economist.
It's not terrible to have a problem, but it's terrible to sit back and wait. No matter how difficult the situation is, only when you start to change will there be a ray of hope.
On January 20, the Jinhe Yusu fresh rice project of Guirenniao was successfully signed and officially landed in Nantong Chongchuan Economic Development Zone. It marks the phased progress of the company's layout of the new track.
At present, aseptic fresh rice is a small but beautiful track, and there is no more influential local aseptic fresh rice brand in China. On e-commerce platforms, the product is dominated by Japanese brands.
According to data from Zhiyan Consulting, the market size of instant rice in 2022 will be 118.6 billion yuan, a year-on-year increase of 1593%, of which the market share of self-heating rice accounts for a relatively large proportion, accounting for 444%。
Guirenniao said that at present, the company has put into operation a sterile fresh rice production line in Nantong, which can provide an annual output of 50 million to 60 million boxes after completion, and the company will strive to become the first aseptic fresh rice brand in China.
Choosing to adhere to the main business of Meibang clothing, there is also no shortage of changes to watch.
On January 23, Zhou Chengjian released a signed article internally: In the new year, Meibang will continue to go all out to deepen the transformation with a digital strategyDo a good job of "good products", "good content" and "good experience". On January 5, Meibang also issued a document, "In the new year of 2024, we will do a breakthrough in reducing costs and increasing efficiency, organizational efficiency, gross profit margin targets, and improving commodity efficiency, so that the company can achieve a breakthrough in overall profitability." ”
Looking back at 2023, the three-good and comprehensive profit goals have a certain confidence. Thanks to the vigorous transformation, in the first half of 2023, the proportion of online sales of Meibang apparel will exceed 30% for the first time, reaching 3190%, online sales of about 1$2.6 billion.
Objectively speaking, in addition to reducing costs and selling capital, the comprehensive reform and strategic accumulation in 2023 have also laid the foundation for the development of the enterprise.
The ups and downs of enterprises are the norm, and the only constant is change. Whether it is the United States that ushered in the "new handsome", or the noble bird who went to the new main business, the glory of the past only represents the past, and only by constantly self-evolution and refinement can we survive and live better.
It is said that surviving the cold winter is spring, and after the labor pain is accumulated, there will be an attack, how far is the beauty and noble bird from completely breaking free from the barrier of loss and ushering in the "second spring"?
This article was originally written by Shoucai