Can Stripping Assets Recover Main Business Advantages? La Natsu Bell Transfers Rights And Interests Of Subsidiaries

In July 20th, La Natsu Bell issued the notice on the completion of the transfer of the fund shares of the subsidiary company. The announcement shows that the Shanghai partnership of the whole family subsidiary of the Tianjin La Xia Management Company Limited has transferred the partnership interest of 98.04% of the star consulting management partnership of the star company in Hong Kong. The registration procedures for the sale of the items and the transfer of the rights and interests of the target fund in July 18th have been completed and the transaction amount is about 275 million yuan.

La Natsu Bell once said in the announcement that the transfer of Tianjin Xing Kuang 98.04% partnership interest is to focus on resources to focus on the main business development, and further enhance the company's ability to continue operation.

This is La Natsu Bell Di's two sale of assets this year.

In early May, La Natsu Bell sold his controlling subsidiary, Hangzhou, which was 54.05% of Agel Ecommerce Ltd's shares. The transaction amount was 200 million yuan, and the sale proceeds would be used for the development of the company's business.

La Natsu Bell, who started in the direct camp mode, is suffering from difficulties in the development of the new era. His performance has declined year after year, and he is forced to embark on the road of transformation, streamlining his business and concentrating on developing his main business.

After La Natsu Bell's "Crazy" expansion, he began to gradually shrink and adjust the scale of his business. At one point, La Natsu Bell focused on the expansion of Direct stores, and opened the store by raising money and opening stores. He opened the store to 9369 stores in the eight years from 2011 to 2018.

The rapid expansion of stores has led to a continuous increase in product inventories. The backlog of inventory has occupied a certain amount of working capital, which has affected La Natsu Bell's cash flow, and has also had a negative impact on business operations and performance.

In 2016, La Natsu Bell's performance began to decline, net profit fell by 15.58%, net profit in 2017 reached 499 million yuan, down 6.29%; net profit loss in 2018 was 160 million yuan, down 132%; in 2019, net profit in the first quarter reached 9 million 751 thousand yuan, down 94.4%.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd. pointed out that the sale of assets by La Natsu Bell should be adjusted internally, and the transfer of assets is also aimed at focusing on the main business.

La Natsu Bell, who is heading for a difficult way, will change direction. He will no longer take the direct camp mode as the leading factor, but also introduce the mode of joint operation and affiliation, and form a channel structure layout that is directly battalion, joint venture and joining together.

In fact, there are many garment enterprises in the transformation of other businesses, focusing on the development of the main industry. YOUNGOR is one of the traditional men's clothing enterprises. In the early years, it claimed to be returning to the main garment industry, and is striving to divestiture investment and investment business and adjust its internal development strategy.

According to incomplete statistics, YOUNGOR currently holds 39 financial investment projects, with an investment cost of 30 billion 420 million yuan. In order to better focus on the main garment industry, YOUNGOR began selling financial assets gradually from last year, including the Shanghai Pudong Development Bank, Ningbo bank, CITIC shares and venture software shares, and the total amount of business has exceeded 6 billion 300 million yuan. In 2019, YOUNGOR continued to sell CITIC shares, the total amount of transactions amounted to 4 billion 254 million yuan, the accumulated amount of structured deposits redemption amounted to 1 billion 417 million yuan.

The performance of the main garment industry has been slightly improved. In the first quarter of 2019, the data of the first quarter showed that the sales volume of the fashion apparel sector reached 1 billion 645 million yuan, up 20.80% over the same period last year. The net profit attributable to shareholders of the listed company was 308 million yuan, up 12.99% over the same period last year.

According to the data, YOUNGOR's main brand in the three quarter of GY2018, GY brand only achieved sales revenue of 1 million 780 thousand yuan, accounting for only 5.7% of the first three quarters of revenue. In 2016 and 2017, GY revenue was 152 million 800 thousand yuan and 152 million 600 thousand yuan respectively.

Even though it has always stressed the return of the main garment industry, YOUNGOR still relies on real estate business to achieve growth in performance. In February, YOUNGOR announced the news again. On the other hand, to return to the main garment industry, and continue to strengthen the layout of the real estate business, is still a "do not work" clothing brand.

There is also an outdoor sports brand pathfinder for continuous performance losses and return to main business. After 2015-2017 years and three years of continuous losses, Pathfinder has gradually stripped off business and investment projects related to outdoor main business in travel, sports and other fields, contracted the sideline industry, and devoted energy to the outdoor main business.

When the outside world became the "investment failure" project - easy to travel the world and continued to lose money, the Pathfinder carried out a capital increase plan in 2018. It plans to increase its capital to Yi you by 15 million 579 thousand yuan with its own funds, which makes it hard to believe that the Pathfinder is determined to return to the main business.

With the fierce competition of clothing, the diversified development of clothing brand is no longer the only direction. More garment enterprises return to the main business, focusing on the specialized research of the garment industry. But after a long period of extensive development, it is not so easy for garment enterprises to return to the main business. Relying solely on the stripping business is not based on the market, and the thinking, products and modes must reach a certain mutation to win the burst in the changeable clothing market.