The Risk Of Hai Lan'S Stock In The Selling Mode

According to the world clothing shoes and hats net, the stock is

If the inventory is too high, the liquidity of the enterprise will be directly affected. At the same time, the high inventory represents a very high proportion of old goods. If this problem is not solved, there will be problems in the future management.

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"Men's Wardrobe", "two times a year, the home of Hai Lan".

Speaking of Hai Lan's home, many people are impressed by actor Yin Xiaotian's dancing in the advertisement and the above slogans.

As a listed company, the concern of Hai Lan's home is another problem.

Recently, the company issued the semi annual report in 2017, and the high stock price caused widespread discussions between the industry and investors.

What is the management mode of Hai Lan's home? Why will there be so much inventory? How will it be handled? To answer the above questions, the reporter has recently contacted the relevant person in charge of the company, but up to the specified time, no corresponding explanation has been received.

Risks under consignment mode

According to the 2017 semi annual report released by Hai Lan home, its revenue during the reporting period was 9 billion 253 million yuan, an increase of 5.5% over the same period, with a net profit of 1 billion 875 million yuan, an increase of 5.7% over the same period last year.

But in the case of growth in performance, the inventory of Hai Lan's home is high enough to worry investors.

According to the first half of the year, inventories are as high as 8 billion 675 million yuan, of which 5 billion 792 million yuan is in stock.

Looking back at past data, in 2015, the company's inventory of 9 billion 500 million yuan and 8 billion 600 million in 2016 exceeded 40% of the total assets.

Statistics of the 2016 annual report issued by 38 listed clothing companies of A shares showed that the total inventory at the end of the year was 35 billion 396 million yuan, accounting for 21% of the total assets.

Why does the company have such a high inventory? According to Hai Lan's home, it is because of its "unique mode of operation" and "strong bargaining power".

How can this be explained?

The road of Hai Lan's home is called "light assets" by insiders.

Brand HM and ZARA are similar.

This mode is mainly "headquarters brand management + production outsourcing + general library logistics + chain sales".

When franchisees open new stores, the franchisees are responsible for the cost of shop decoration, rental, water and electricity, property and shop staff salaries. Hai Lan's family is fully responsible for the operation of the stores, including management and sales personnel training, hiring, remuneration, store distribution, replacement and store decoration, etc., so as to achieve the requirement of "store side", that is, the sea Lan's home is mainly to expand the layout through the money of franchisees.

In this mode, Hai Lan's home has opened 5491 shops in 31 provinces (autonomous regions and municipalities directly under the central government) in recent years, and it can be called everywhere.

But for this model, people in the industry have raised doubts that "under this mode, enterprises will not pay attention to the quality of consumers and clothing themselves, but pay more attention to franchisees."

In this mode, how to calculate inventory depreciation becomes an important issue.

According to the company's 2017 annual report, the provision for depreciation is about 230 million yuan, accounting for 4% of the inventory.

However, other listed companies appear to be more conservative in this data, and clothing companies such as 002029.SZ, 601566.SH and 603196.SH are 49.4%, 10.3% and 19.7% respectively.

In addition, in the inventory, Hai Lan home commissioned the sale of goods is also not small, up to 2 billion 457 million yuan, but only about 40 million yuan, or about 1.6%.

Consignment sales mode, that is, Hai Lan's home to commission its products to franchisee sales, according to the relevant provisions, franchisees do not bear the risk of inventory unsalable.

That is to say, under the consignment sale mode of Hai Lan's home, the risk of inventory is not on the franchisee.

Behind the tight capital chain

Then, is it reasonable for Hai Lan's family to raise the proportion?

On this issue, Hai Lan's home said in a semi annual report, "the company has strong bargaining power with suppliers."

Unlike most of the self-produced and self marketing clothing enterprises, the products sold by Hai Lan's home are ordered from the thousands of garment enterprises in the country (i.e. suppliers) on credit. Meanwhile, Hai Lan's home and suppliers sign a return clause for unsalable goods.

This is the same as that of Hai Lan's family, which indirectly pfers the inventory risk and the unsalable risk of consignment goods to the upstream suppliers.

People in the industry say, "such terms as Hai Lan's home and suppliers can really reduce their inventory risk, because a large proportion of stocks are unsalable, and the Hai Lan House has pferred this part to the upstream suppliers, and the pressure on behalf of the factory is relatively large."

But as far as Hai Lan's home is concerned, it is obviously unlikely that the supplier will take all the risks.

According to the China Daily, Hai family, a subsidiary of Hai Lan House, is also involved in the handling of tail cargo and jointly undertakes the risk of unsalable sales.

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However, the agreement signed by the supplier and the supplier was not so strong when it was listed in 2011.

According to the previous Hai Lan home prospectus, the company said that the main risk of the goods is borne by the company. Only products returned by consumers due to quality problems or unsalable products due to other suppliers' reasons will be returned to the supplier.

In addition, Hai Lan's home also mentioned that the return rate of the company was relatively low, and the suppliers did not actually take a larger inventory risk.

Why do companies have such a big control over suppliers in just five or six years? At present, most of the liabilities of Hai Lan's home are owed to suppliers and the margin of franchisees.

In other words, if upstream problems or trust crisis, Hai Lan's entire capital chain is facing great risks.

In this regard, whether the company has found the appropriate risk control measures is not yet known.

Outside critics say that the quality of the product does not seem important to Hai Lan's home. The key is to keep the supplier's account time and the scale of the store expanding, which is the key to making money for Hai Lan's home.

Hai Lan's home is more like a financial enterprise than a clothing enterprise.

The senior analyst of the textile industry of the state securities company once said: "because of the need to adapt to the needs of consumers and constantly introduce new products, clothing enterprises can not stop importing raw materials and suspending production. The result is that the amount of inventory is increasing.

As revenues and net profits continue to grow at a high speed, inventory data such as Hai Lan House highlight the company's worries.

"Inventory is the most important health index of clothing enterprises. If the inventory is too high, the liquidity of the enterprise will be directly affected. At the same time, the high inventory represents a very high proportion of old goods, which will affect the terminal sales status. The old goods will not get out of the new products, and the terminal benefits will be greatly affected.

If the high deposit problem is not solved, there will be problems in the future.

For the inventory problem, Hai Lan's home has said that the company is also aware of its own development worries and wants to make corresponding adjustments.

In 2016, Hai Lan's home chose 200 pilot stores to open the online mode of online ordering and offline delivery.

In August 14th of this year, Jiangyin Hai Lan Home Investment Co., Ltd., a wholly owned subsidiary of Limited by Share Ltd, signed an investment intention agreement with fast fashion fashion (Guangzhou) Co., Ltd. to increase its capital by 100 million yuan for fast fashion fashion (Guangzhou) Co., Ltd., and subscribe for less than 10% of its initial subscription.

The company mainly runs fast fashion brand called "UR" and is known as the Chinese version of "ZARA" by the outside world.

For the purpose of investment, Hai Lan's home said in the announcement that the investment will help the company speed up the layout of the high quality enterprises in the fashion ecology circle and cultivate new profit growth points.

However, the impact of this model on inventory remains to be seen.

More interesting reports, please pay attention to the world clothing shoes and hats net.