Hai Lan's Home Listing Road Twists And Turns, Heavy Clothing Industry High Risk Is Not Optimistic.

In May 11th, SFC The eighty-fourth meeting of the Commission issued a veto. Hai Lan's home For the listing application, the company originally planned to issue 49 million shares, financing more than 1 billion yuan, and investing in 4 projects, such as marketing network construction. Although the securities and Futures Commission has not yet disclosed the specific reasons for the failure of the Hai Lan home, the analysts generally believe that the inventory level that accounts for more than half of the total assets and the rapid expansion mode of the upstream and downstream "eat in all" may make the members of the issuance examination committee unable to feel secure about the development prospects of the company.

According to the Hai Lan home prospectus, as of the end of 2011, the company's inventory reached 3 billion 863 million yuan, an increase of 134.10% over the same period, accounting for 56.82% of the total assets, and many indicators were much higher than those of the listed companies. On the other hand, such a high inventory level corresponds to a price drop of only 8 million 200 thousand yuan, and many other clothing enterprises that have struggled under high inventory pressure. The high inventory level of Hai Lan's home has undoubtedly become a "Damour Cris sword" for the company's future development.

stay High inventory Behind it is the unique expansion management mode of Hai Lan's home. "Companies dare to take such a financial meeting, perhaps they think that their business model can provide a reasonable explanation, but from the results, this statement not only failed to convince the members of the trial committee, but may also bring more problems." A senior sponsor who has worked for many years said so to reporters.

According to the description of Hai Lan's home, the company only keeps a small number of production businesses, mainly through purchasing contracts with suppliers for the return terms of goods that can be sold with unsalable goods, and selling products by stores (excluding Direct stores) by means of consignment instead of buyout. Through this mode, the company has expanded rapidly in recent years. On the downstream side, the joining conditions of Hai Lan's home are also quite unique. Franchisees do not have to participate in the specific operation of the franchisee, only to pay the related expenses. The sales settlement between the company and the franchisee is commissioned by the consignment mode, and the franchisee does not undertake the risk of unsalable inventory.

For this reason, a partner of a large domestic accounting firm pointed out that the smooth operation of the model was based on the fact that the company could continue to expand its funds and continue to digest its inventory through continuous sales growth. Once the downstream expansion or sales slowed down and pushed upstream suppliers, large-scale returns would be difficult to achieve and easily lead to various disputes.

This expansion mode of Hai Lan's home has attracted the downstream entry by controlling the upstream way, but at the same time, it also pulled the risk of this downstream to itself, and whether it could be passed back to the upstream by way of return is still unknown. This is far from the light asset model advocated by the company itself. No one believes that a light asset company with 3 billion 800 million yuan in stock accounts. The partners stated so.

Perhaps it is this systemic risk across the industry that adds many variables to the development prospects of Hai Lan's home. In fact, in recent years, many clothing enterprises such as Shandong Shu Lang, Nanjing Wenger, Shanghai, Shanghai, Zhuhai, Fujian, Shenzhen, lady house and many other garment enterprises have lost their IPO, and in the reasons for the disclosure of the SFC, the substantial increase in the level of memory goods in the reporting period is an important reason. Scrutinizing the list of shareholders of these companies, there are many venture capitalists, such as the three shareholder star group of Hai Lan home, which belongs to the joint venture company of Singapore Temasek investment and Columbia University foundation. It can be expected that so many cases in the garment industry will allow the continued VC/PE to avoid the choice of the project.