Seven Wolves: 1 Billion Yuan To Raise Funds To Divert Investment

According to the July 15, 2015 announcement of the seven wolves, the company intends to change 1 billion yuan to raise funds for investment and set up a wholly owned investment subsidiary, Xiamen seven Shang Investment Co., Ltd. (hereinafter referred to as: seven is still investing).

The company will be the main external investor of the seven wolves, and will participate in the investment apparel industry and related fashion industry and retail consumption industry through direct investment or the formation of special funds.

In terms of fund allocation, the company intends to invest 400 million yuan in the acquisition, agency and brand cultivation of the brand. It intends to invest 400 million yuan for online and offline channel integration and new business mode participation, and intends to invest 200 million yuan for the supply chain of the back end and the docking of the capital platform.

At that time, Chen Ping, the secret agent of seven wolves, told the media that the existing single brand development mode of the seven wolves had the upper limit of scale, and the company was going to expand new fields to adapt to the change of business mode.

Traditional businesses may not be able to do these new things in lifestyle or business models.

Through seven investment in this investment platform, mergers and acquisitions abroad.

However, reporters found that even if the seven wolves changed their collection projects in 2015, they set up a subsidiary company seven in Xiamen. But as of December 31, 2015, Xiamen's seven raised fund has not been put into practice except for idle cash management.

As a result, Xiamen's seven performance in 2015 ended in a loss.

The annual report shows that in 2015, Xiamen's seven business income was zero, operating profit of -11.35 million, net profit of -8.52 million.

From the above, a new investment and investment project, Xiamen seven, is regarded as an important strategic investment plan by the seven wolves as an investment in the field of pformation. However, when the subsidiary has no money to invest, the company has to arrange new activities for Xiamen seven.

Notice shows that

After the "part of the fund-raising fund is invested in the change, based on the unpredictable and phased nature of the investment project, Xiamen's seven foreign investment will not be completed at once, and it will generate temporary idle funds". The board of directors of the company passed the "motion on the cash management of the authorized Xiamen seven Equity Investment Co., Ltd. in the existing cash management quota of the raised funds". "Agrees that Xiamen seven is still using the idle raised funds for cash management before the company has raised the fund's cash management quota before changing the purpose of raising funds."

In addition, the cash management quota of the seven raised fund in Xiamen is the difference between the amount of 1 billion 300 million yuan RMB and the company's usage quota which was considered by the general meeting of shareholders in 2014. In the validity period, the amount of the fund can be scrolled.

At the same time, seven wolves also said that the company intends to continue to use part of the temporary idle funds raised for cash management investment guaranteed financial products, the amount increased from 350 million yuan to 1 billion 300 million yuan, and authorized the chairman within the limits of the line to make the relevant decision-making power and sign the contract documents.

In other words, seven wolves can use 1 billion 300 million yuan of idle raised funds for financial management.

But for the seven wolves holding huge amounts of money but nowhere to invest, investors are also very anxious.

Yes

"You are holding billions of cash, no merger and no bonus," he asked. What is the plan? The gap between men's clothing brand and Hai Lan's home is getting bigger and bigger. Now everyone's perception of the seven wolves is only socks underwear and belt.

Where are you heading? "

It can be seen that in 2015, the seven wolves accounted for the largest proportion of their business income, namely underwear, underwear and socks.

In this case, the investors suggested that the management of the seven wolves said: "if there is no ability to run, we will sell the shell in pition".

Li Lingbo, chief financial officer of seven wolves, replied: "the company's future strategy has been disclosed in the annual report of the company, and we will follow the established strategy.

Maybe the speed and quality are not up to your expectations, we will continue to work hard.

However, for the future profits of the seven wolves, the Company Secretaries

In response to investors, the company said that in the pformation of industry and investment, the industrial sector is mainly in the adjustment stage. The investment section is still in the stage of project search and evaluation, and there is no new project that can have a significant impact on the company's net profit for the time being.

Looking at the 2015 annual reports of seven wolves, it is clear that the doubts of these investors are not pointless.

According to the main business of seven wolves, in 2015, the operating income of sweaters, suits, trousers, shirts and coats decreased by 17.49%, 23.68%, 4.58%, 18.91% and 23.35% compared with 2014, and only 2.7% of T-shirts increased.

In the income statement of seven wolves, the operating income of "other category" is 622 million yuan, accounting for 25.01% of the proportion of operating income, and an increase of 119.5% over the same period.

The main reason is the expansion of the textile business during the reporting period. Its products are mainly underwear, underwear and socks.