Did La Natsu Bell Fail To Make Up For Acquisitions?

Recently, about Shanghai La Natsu Bell Clothing Co., Ltd. (hereinafter referred to as "La Natsu Bell"), the negative news continues, the acquisition is not smooth, the issue of convertible bonds collection fund matters failed, poor performance and share prices continue to fall, how long can La Natsu Bell bear such heavy burden?

In February 28th, La Natsu Bell announced that the company would extend the final date of the delivery of the French Naf Naf SAS60% stake to July 1, 2019.

In fact, in April 2018, La Natsu Bell decided to spend 52 million euros (about 400 million yuan) to acquire all the issued shares of French VivarteSAS's brand Naf NafSAS. When the news of the takeover came, the stock market followed a hot upsurge.

Although La Natsu Bell said the delay was due to the fact that the terms of the paction were not yet met, Bonedo thought it was the result of its low performance that led to the failure of the purchase and expressed concern about the completion of the acquisition.

It is worth noting that La Natsu Bell issued convertible bonds on the two day before the announcement of the extension.

In fact, La Natsu Bell has been financing since he went public, and has launched two capital market financing plans. He plans to raise 1 billion 570 million yuan.

It is understood that as early as last September, La Natsu Bell issued a public offering of A shares to the Switching Company bond plan, which is expected to raise 1 billion 530 million yuan through the issuance of convertible bonds. It will be used for retail expansion projects, store upgrading projects, smart store construction projects and logistics center construction projects.

Since then, the amount of fund-raising has dropped from 1 billion 530 million to 1 billion 170 million in December.

In January 16th of this year, La Natsu Bell intends to register and issue a medium-term note or ultra short term financing certificate of not more than 400 million yuan, which is used to supplement the company's working capital and repay loans from financial institutions.

However, reporters found that the company's actual controller and concerted action shares pledge nearly 90%, the greater the risk of capital.

In addition, La Natsu Bell has resigned six executives in a year, and the management risk is not small.

The bigger "risk warning" is that since La Natsu Bell landed on A shares in 2017, his performance has continued to slump.

The financial report showed that the company achieved 8 billion 999 million yuan in 2017, only 5.24%, while net profit was reduced by 6.29% to 499 million yuan.

Although the annual report for 2018 has not yet been disclosed, performance forecasts show that the company expects net profit in 2018 to drop by about 91.98% compared to the same period last year, reducing by 459 million yuan.

Compared with net profit in 2017, La Natsu Bell has seen a lot of internal problems after a year of operation.

But surprisingly, although the performance is not ideal, but did not stop La Natsu Bell's continued expansion.

Data show that in 2015, the number of La Natsu Bell's national stores was more than 7800, and by 2018, it had expanded to more than 9600, most of which were direct stores.

A large amount of capital is needed to open a store, and funds for listing and financing are also used for this purpose.

Rapid expansion of stores does not mean revenue growth.

Compared with other channels, Direct stores need to pay more manpower, material resources and financial resources. The cost of opening a store is huge. The shops next to the line are bound to need a cycle to get profits. Whether or not capital outflow can get capital inflow is La Natsu Bell's core problem.

In the era of rapid development of electricity providers, a large number of investment channels under the line do have the opposite feeling.

In fact, the continued expansion of these stores has led to an increasing inventory of La Natsu Bell, and inventory is also a fatal injury to the clothing industry.

As of the end of September 2018, La Natsu Bell's inventory amounted to 2 billion 700 million yuan, accounting for 32.46% of total assets.

This figure increased by nearly 1 billion yuan compared with 1 billion 756 million at the end of 2015.

Although the staff of La summer bell store told reporters that the company will continue to discount activities to reduce inventory, but the brand impact will also be greatly discounted, and reasonable solution to the high inventory problem is imminent.

The change of La Natsu Bell's stock price was considered by some analysts of Minmetals securities as "cutting leek".

By the end of February 11th, La Natsu Bell had quoted 8.62 yuan per share, down 60.7% from the highest price, and the total market capitalization of the company was 4 billion 53 million yuan, which shrank by nearly 8 billion yuan from its peak in the early stage of the listing.

The analysts told reporters that although the stock market fluctuated in recent years, La Natsu Bell's change was closely related to the operation and poor management, and the capital market became indifferent.

As the only A+H listed company in the clothing industry, La Natsu Bell's problem is constantly changing, and the current positioning of clothing is not clear.

Compared with Taiping bird, Semir and other casual wear, La Natsu Bell's performance is still in the doldrums. In the environment of increasing competition, it is difficult to determine when La Natsu Bell can stop falling.