Vigna S Again Three Years Later IPO Inventory High Pressure Solution

Here world

The weave of the net gives you a brief introduction to the problem of IPO's high inventory pressure after three years.

The prospectus shows that in 2011~2013, the book value of the wicknus stock was 120 million yuan, 170 million yuan and 154 million yuan respectively, of which the stock commodities were 89 million yuan, 131 million yuan and 117 million yuan respectively, accounting for 73.88%, 75.66% and 73.79% respectively.

Three years ago, IPO, a fashion company that had no impact on the fruit of the IPO, is now reappearing in the list of queuing listings, and the prospectus of Shenzhen fashion Mass Phil, a listed company in the same industry, has been disclosed on the website of the securities and Futures Commission.

In 2011,

IPO was rejected by the SFC for its inventory and profitability problems.

The two degree IPO has been separated for three years since the last time. How did it come out? From the prospectus it disclosed, in the past three years, the performance of Vegas has been better.

In 2011~2013, its operating income was 505 million yuan, 598 million yuan and 746 million yuan respectively, and the net profit attributable to shareholders of the parent company was 91 million yuan, 95 million yuan and 136 million yuan respectively.

Like many garment enterprises, Vigna S is also facing the problem of high inventory.

In 2011~2013, the book value of the wicknus stock was 120 million yuan, 170 million yuan and 154 million yuan respectively.

In the increasingly fierce competition in the domestic women's wear industry, Vigna S, who relies on the development of a single brand, may still have a long way to go.

Three years later, IPO again

Vigna S is set up by the overall change of Nanjing strong grass. The main business is the design, production and sale of high grade women's wear. The main product is "VGRASS" brand clothing and accessories.

Since its establishment, Vigna S has always adhered to the direct camp mode.

In 2009~2013, the number of shops was 171, 272, 346, 361 and 361.

By the end of 2013, the company had 320 Direct stores, accounting for 88.64%, and 41 franchisees, accounting for 11.36%.

As early as 2011, Wenger took the road to IPO.

In those days, besides a large number of clothing companies, there were a large number of garment enterprises queuing up to market, including Semir costumes, nine herdmen, langzi shares, 100 round pants industry, bar Jie shares, Shu Lang dress, Shanghai Li Rui dress, Zhuhai Wiseman dress, Fujian nunzi, lady house and so on.

However, in the end, most enterprises failed to pass smoothly, and Vigna S was one of them.

In July 18, 2011, the SFC rejected the company's IPO application on the grounds that Vigna S's operating income from 2008 to 2010 was 141 million yuan, 201 million yuan and 313 million yuan respectively.

Although business revenue has increased significantly, the number of clothing sales has not increased in the number of stores from 143 in 2008 to 272 in 2010. The number of clothing sales in 2008 to 2010 is 581 thousand and 800, 603 thousand and 400 and 586 thousand and 700 respectively.

In addition, Vigna S had planned to invest 277 million yuan to raise funds to open 85 self operated stores, and in 2010, the number of stores closed was 46.

"As a result of a process of opening business to profitability, the number of clothing sales has declined during the company's reporting period, and the stock market has increased significantly at the end of 2010. There is a big uncertainty about your company's future profitability."

The issuing Committee said so.

After three years, Vigna S once again embarked on the A share market.

Prospectus shows that with the continuous improvement of the company, the sales revenue and the net profit after the deduction of non recurring gains and losses has been increasing continuously, from 505 million 143 thousand and 500 yuan and 89 million 122 thousand and 800 yuan in 2011 to 746 million 253 thousand and 100 yuan and 132 million 839 thousand and 200 yuan in 2013, respectively. The annual compound growth rate is 21.54% and 22.09% respectively.

According to the analysis report on the development of high-end women's clothing market in 2011 released by China business information network, Vigna S's "V GRSS" brand has improved, ranking the highest in the national high-end women's clothing market from tenth in 2009 to fifth in 2011.

According to the survey conducted by the China Federation of Commerce and the China National Business Information Center, the "V GRSS" brand women's clothing ranked the top five in the market share of similar products in 2012.

What is the inventory pressure?

In terms of performance, Vigna S may be full of confidence in the listing. However, it must be noted that the high stock of wnnascu remains worthy of attention.

Vigna S pointed out that the inventory situation of the former CSRC has not been improved.

Vigna S said in the prospectus that the raw materials of the company's products usually use fashionable fabrics, and many fabrics are imported from abroad, and the procurement cycle is longer. The purchase time usually takes about three months. Therefore, it usually takes about six months to go from simulated ordering to seasonal products.

Because of the possible deviation of the company's forecast of market demand, there is a certain volatility in the company's inventory.

The prospectus shows that in 2011~2013, the book value of the wicknus stock was 120 million yuan, 170 million yuan and 154 million yuan respectively, of which the stock commodities were 89 million yuan, 131 million yuan and 117 million yuan respectively, accounting for 73.88%, 75.66% and 73.79% respectively.

In the same period, the inventory turnover rate (Times) was 1.49, 1.35 and 1.44. respectively.

Vigna S explained in the prospectus that the increase in the style of the company's listing in 2012 led to a corresponding increase in the final inventory.

In 2012, the company continued to increase R & D efforts, with 966 products listed on the market, representing an increase of 68 compared with 2011, with a growth rate of 7.57%.

Meanwhile, the company's stores increased from 346 at the end of 2011 to 361 at the end of 2012, the growth rate was 4.34%. The expansion of the company's business scale and the increase in the number of shops objectively led to the increase in the stock of the company at the end of 2012.

In fact, high storage can be said to be a stubborn disease in the clothing industry.

The main reasons for the rejection of IPO were Vigna S's clothing, Shanghai's Piri dress, Zhuhai's dress, Fujian fashion, ladies' house and so on.

Under the pressure of inventory, Wenger increased the channel construction.

The total amount of funds raised is 869 million 283 thousand yuan, and 259 million 543 thousand yuan will be used in 152 stores' marketing network construction projects. Among them, flagship stores and high-end stores occupy the overwhelming majority.

Fierce competition in women's wear market

Vigna S's domestic women's clothing industry is a fully competitive industry with numerous enterprises.

As female consumers pay more attention to the fashion and personalization of clothing, the number of women's clothing brands is more than that of men's.

With international brands CHANEL, Louis Vuitton, DIOR and BURBERRY entering China's market, fast fashion brands such as GAP, ZARA and H&M have set up sales terminals in China in recent years, which has intensified competition in the domestic apparel industry.

At present, the competition of women's clothing industry has gradually developed from low level price competition to brand competition, which is reflected in R & D design, channel terminal, fast supply chain, commodity management and so on.

Moreover, as international brands continue to enter the domestic market, competition will become more intense. If the issuer can not effectively cope with the industry competition in the future, the market share and profitability will face the risk of falling.

According to the analysis of the "competition pattern of Chinese women's wear industry brand and the development strategy of leading enterprises" released by the foresight Industry Research Institute, 2013~2017 shows that at present, there are more than 6000 enterprises in China's women's clothing industry above Designated Size, and more than 30 thousand brands.

At the same time, China's women's clothing market is showing the trend of "international brand is king and domestic lords dispute": international brands firmly occupy most of the high-end market of Chinese women's clothing, but there are not many brands with large scale and high popularity in the whole country.

In addition, from the current consumption stage, China

Consumption has shown a trend of diversification. This trend requires brand owners to achieve brand maintenance through personalized design and brand stylization.

Vigna S is currently implementing a single brand strategy. At present, he owns the "V GRSS", though he can do his best, but he is also faced with the risk of a single brand.

Vigna S is also aware of the hidden risks of a single brand. Therefore, in the prospectus, the company will choose the right time to build other brands and explore the multi brand management mode when it continues to make strong "V GRSS" brand.