Sanfo Outdoor 240 Million Idle Funds To Buy Financial Contribution To 80% Profit

Sanfo outdoor (002780.SZ), a veteran outdoor product company in China, relies on non recurring gains and losses to support its performance.

A few days ago, Sanfo disclosed its annual report. The company achieved a net profit of 5 million 28 thousand and 700 yuan in 2018, turning a profit into a deficit. However, the net profit after deducting non recurring gains and losses was 849 thousand and 400 yuan.

Changjiang Commercial Daily reporter noted that although the listing was only three years, Sanfo outdoor has been deducting non net profit losses for two consecutive years, with a total loss of more than 17 million 330 thousand yuan.

On the other hand, in addition to IPO fundraising, Sanfo outdoor raised funds in the end of 2017, and accumulated two yuan in total 387 million yuan.

But as of the end of 2018, in addition to just changing the two years of idle IPO fundraising for the layout of parent-child outdoor parks and permanent supplement, the company has increased the progress of the subscription investment project to less than 5%.

And a large number of idle fundraising funds to buy bank financial products, investment income has also become one of the main support for the company's profits.

In 2018, Sanfo's outdoor financial revenue and government subsidies accounted for 81.3% and 36.1% of the total profit respectively.

Three years on the market is not net profit for two years

As one of the earliest outdoor enterprises in China, Sanfo outdoor was listed in December 2015. Its main business includes three major outdoor sports products, event group construction and parent-child outdoor park.

However, only two years after listing, Sanfo outdoors was in a loss.

Financial data show that in 2017, the company achieved operating income of 351 million yuan, a year-on-year decrease of 0.53%, net profit of -1290.87 million yuan, a year-on-year decrease of 136.49%; net profit after deducting non profits was -1648.47 million, down 149.14% compared to the same period last year.

In 2018, the company achieved operating income of 420 million yuan, an increase of 19.62% over the same period last year, exceeding the growth rate of the industry. Net profit was 5 million 28 thousand and 700 yuan, an increase of 138.96% over the same period last year.

The Yangtze daily news reporter noted that last year's losses were mainly due to non recurring gains and losses from financial products and government subsidies.

After deducting non recurring gains and losses, the company's net profit is actually -84.94 million, and the main business has accumulated a total loss of more than 17 million 330 thousand yuan for two consecutive years.

The annual report shows that in 2018, the government subsidies and financial products revenue attributable to the current profits and losses were 2 million 332 thousand yuan and 5 million 248 thousand yuan respectively, accounting for 36.1% and 81.3% of the total profits respectively.

In addition, the Yangtze daily news reporter noted that due to the relatively high inventory accounts, the company's asset impairment losses are also important factors affecting the current performance.

The annual report shows that in 2018, Sanfo's outdoor assets impairment loss was 3 million 934 thousand and 400 yuan, accounting for 60.98% of the total profit in the current period.

Among them, the loss of inventory price was 4 million 115 thousand and 700 yuan, and the loss of company's inventory price was 9 million 592 thousand and 700 yuan in the same period last year.

By the end of 2018, the balance of Sanfo's outdoor inventory was 181 million yuan, accounting for 26.6% and 20.7% of the company's current assets and total assets, respectively.

It is worth mentioning that during the reporting period, the net operating cash flow of Sanfo was 19 million 870 thousand and 800 yuan, an increase of 156.93% over the same period last year, ending the net outflow of operating cash flow for two consecutive years.

Investment projects only invested 4.4%

In the past three years, Sanfo outdoor has raised funds for two times, but its investment and development projects are progressing slowly.

At that time, Sanfo outdoor IPO raised net capital of 132 million yuan, plans to be used for marketing network construction, information system upgrading, supplementary liquidity and other three major projects.

At the end of last year, the company plans to change the "marketing network construction project" of the first equity investment project into "cash acquisition of part of the shareholding and capital increase project" of Shanghai sun Le Culture Development Co., Ltd. (hereinafter referred to as "Shanghai music"), and the first remaining fund raised 46 million 730 thousand yuan to permanently replenish the working capital.

According to the original plan, Sanfo outdoor intends to invest 157 million yuan in marketing network construction projects, and build 29 Direct stores.

As of last November 30th, only 11 stores were opened, and the total use of 48 million 836 thousand and 300 yuan was raised, and the yield was not up to the expected project. The remaining 82 million 280 thousand yuan had been idle for more than two years.

The acquisition of the target Shanghai music is mainly for the squirrel tribes in the family and outdoor world. In 2017 and 2018 1, October, the target business income was 16 million 351 thousand and 200 yuan, 18 million 529 thousand yuan, net profit 1 million 664 thousand and 800 yuan and 5 million 93 thousand and 100 yuan respectively.

In addition to IPO fundraising changes, Sanfo's outdoors fixed investment increase project is also slow.

In December 2017, the company raised funds by 255 million yuan, which was planned for Sanfo outdoor sports events, camp + training, retail and experience integrated operation center construction project and Sanfo headquarters office and R & D center construction project.

According to the annual report, as of the end of last year, only 11 million 402 thousand and 500 yuan had been invested in the construction of office building projects, and another major project had not yet been invested. The overall progress of the project was 4.4%.

On the whole, the two financing was completed, and Sanfo outdoor raised 387 million yuan.

In the past three years, the total amount of fundraising has been only 37%.

On the other hand, Sanfo outdoor uses many idle funds to buy financial products.

Up to the end of last year, the company used the fund to raise money to buy financial products. The balance was 170 million yuan, and the amount of money entrusted in the reporting period was 250 million yuan.