Less than two years after delisting, Belle returned to the capital track, but this time her identity was different.
On the evening of June 27th, Topo International Co., Ltd. (hereinafter referred to as Topo International), a sports division of Belle, submitted a prospectus on the Hong Kong Stock Exchange, intending to be listed on the main board of the Hong Kong Stock Exchange, with Belle International as the controlling shareholder.
Ten years after listing, Belle, the former "shoe king", sold at a low price of 2/3 and chose to retire. The sports business segment was split and listed, and Belle once again "came out of the mountain", behind which was confidence in its sports business. According to the report of Jost Sullivan, a well-known enterprise growth consulting company, Topo International ranked the largest sports shoes and clothing retailer in China with a market share of 15.9% in 20/8.
However, it is still unknown whether serious and eccentric surfing can help Belle turn over against the wind.
Over-reliance on two major forces
Topp International, whose total score is constantly improving, has a very uneven development of all subjects and has a serious deviation.
In the past three years, Tao Bo International has handed over outstanding report cards, and its income and profit have increased year by year. However, 90% of this achievement is driven by two major brands.
According to the prospectus, the revenues of Tao Bo International 20 17, 20 18 and 20 19 (as of February 28th) were HK$ 2 169 billion, HK$ 26.55 billion and HK$ 32.56 billion respectively, of which HK$ 20 19. The profit also climbed from HK$13.2 billion in 20 17 to HK$ 2.2 billion in 20 19.
As a sports retail and service platform, Tao Bo International's income is more like a gamble. I bet almost all my income on Nike and Artie.
As mentioned in the prospectus, Tubo International currently owns 1 1 brands, including Nike, Adi, Puma, Converse, Timberland, Vance, The North Face, Skye and other brands, but its income mainly depends on Nike and Adi. From the sales data of the last three years, it can be seen that the income of major brands accounts for about 90% of the total sales income, while the income contributed by other brands is less than 13%.
Putting eggs in the same basket is very easy to cause "nothing" when risks come. Among these risk factors, Tao Bo International is also worried about over-reliance on major brands.
It is mentioned in the prospectus that relying on a few brand partners to provide sales products will have a significant adverse impact on the company's profitability and business prospects once it fails to maintain good relations with them or renew the retail agreement.
In addition, as a product sales platform, Topology International does not participate in production and design, and has limited control over the products it sells. To a great extent, it depends on the marketing ability of cooperative brands, and its business performance is also constrained by cooperative brands. Just like a kite tied, where to fly and how high to fly mainly depends on the idea of the matchmaker.
Number of closed stores ≈ Number of opened stores
For retailers, those who get the channel get the world.
Tao Bo International also clearly stated in the prospectus that the direct store network is the key to improve performance, and ranked it as the first competitive advantage factor.
According to the prospectus, as of February 28th, 20 19, the company has opened 8,343 direct stores and 1880 stores operated by its downstream retailers in 268 cities in 30 provinces. Among them, 98.8% of the direct stores are single brand stores. In addition to single-brand stores, Tao Bo International mainly operates multi-brand stores through its own store brands such as Topsports and Foss.
Among the 8343 direct stores, 1845 is the home of Lu Yu, followed by North and South, and the number of direct stores in the three districts is more than half.
With the laying of the store network, the rental fee is gradually increasing. According to the data, from 20 17 to 20 19, the rental expenditure was HK$ 2.744 billion, HK$ 2.906 billion and HK$ 33.7 10 billion, accounting for 12.6%, 10.9% and respectively. In addition, the lease liabilities also increased from HK$ 505 million in 20 17 to HK$ 65,438 million.
In addition, from the data published in the prospectus, the number of closed stores has increased at the same frequency as the number of newly opened stores, and the number of closed stores has an expanding trend.
In 20 17, the number of closed stores exceeded half of the number of newly opened stores, which was 817; In 20 18, the number of closed stores increased 125, but the net growth of stores only increased by 76. By February 28th, 20 19, there were five newly opened stores 14 15, but the number of closed stores actually reached 1374, almost equal to the number of newly opened stores.
Medium and long-term receivables increased by 3 times.
Maintaining the best inventory level is the key to the success of an enterprise. For sports shoes and clothing which are greatly influenced by seasonal factors, reasonable inventory management is the premise of healthy capital turnover.
According to the prospectus, the inventory of Tao Bo International increased from 4,654,380,540 yuan in 2065,438+09 to 6,654,380,390 yuan in 2065,438+009, but the inventory turnover days in the last three years were 65,438+003.6 days and 65,438+respectively.
Although Tao Bo International is efficient in inventory management at present, it is difficult to have confidence in the level of inventory management due to its brand partners and downstream retailers. It is also clearly stated in the risk warning that it is likely to face inventory risks in the future.
As an agent of sports shoes and clothing, Topbo International's inventory digestion is subject to upstream and downstream, and the degree of maintaining the relationship between upstream and downstream has an important impact on the company's profits.
According to the prospectus, Tao Bo's international trade accounts receivable increased significantly, from HK$ 654.38+85.8 million in 2065.438+07 to HK$ 2.633 billion.
From the aging of accounts receivable, 0-30 days is the main part, but accounts receivable with 365,438+0-60 days and more than 90 days are increasing year by year. Among them, the accounts receivable for more than 90 days increased from HK$ 9 million in 20 17 to HK$ 1 300,000, while the accounts receivable for 3 1 60 days increased from HK$ 39.2 million to HK$1100 million year by year. Some analysts pointed out that this reflects to some extent that the bargaining power of Topbo International is weakening.
In addition to the long-term aging of accounts receivable, Top International's prepayments are also increasing year by year. According to the data, from 20 17 to 20 19, Tao Bo International's trade advance payment increased by HK$ 305 million, and other payables also increased by HK$ 3170,000.
Suspect that AG is too low
"Privatized" Belle chose to spin off the sports business and go public less than two years after delisting. At the same time, there are voices that Belle "quit AG", and the meaning of spin-off may have existed long ago.
According to the data, when Belle's share price was low in 20 17, shareholders chose to privatize it at a low valuation of HK$ 53 1 100 million. Less than a year after 20 18 was delisted, it was reported that Belle would spin off its sports business and go public, and said that the valuation of Topbo International might reach 32 1 100 million yuan.
In an interview with reporters, economist Guan Zhuozhao analyzed that the participation of fund shareholders is low in valuation and private. After the reorganization, better assets will be re-listed, and the future valuation will increase, so the original minority shareholders can't share the results.
In addition, in order to draw a clear line between Belle's other business and sports business, Tao Bo International 20 18 was reorganized, and its shareholding structure also changed.
2065438+In September 2008, Topo International was incorporated in Cayman Islands as an exempted company with 100% shares held by Belle International. At present, Belle International is owned by Muse Holdings through its wholly-owned subsidiaries Muse B and Muse M, and Muse Holdings is owned by Wise Venture, Hillhouse HHBH and SCBL with 46.36%, 44.48% and 9. 16% respectively.