High Warehouse Has Sometimes Been Tested By Cash Flow.

The inventory of more than 3 billion 100 million yuan will be "digested" to the first half of next year.

The high inventory allowed Mei Bang to explain in detail at the shareholders' meeting.

According to the state of the United States, it will not cause "indigestion". "In fact, 60% of our stocks are new products in 2011. We are prepared for the shortage of labor."

The United States has high stores for some days.

In 2010, the state's business revenue reached 7 billion 500 million, but inventories were 2 billion 500 million, and the inventory grew by 192% over the same period last year.

Among them, the United States and the main brand accounted for 1 billion 800 million, ME&CITY and online shopping brand AMPM accounted for 700 million.

After eliminating the impact of new products on warehouse and new brand inventory, the inventory size is still 1 billion 500 million yuan, up 62% over the same period last year.

More than 30% of inventory is absolutely high voltage for other garment enterprises.

The growth rate of self run stores is expected to increase rapidly.

"The expected growth rate of direct business growth is relatively high, the late winter and the premature arrival of spring goods and other factors caused the increase in inventories."

Zhuang Tao said.

But behind the warm winter, it is the fast growth of the battalion of single battalion.

As of September last year, the United States Barrack's single store grew by more than 90%, and the stock in winter and this spring increased.

{page_break}

Hongxing Erke insiders said that the proportion of self owned shops is relatively easy at the beginning.

The existence of the high Treasury seems to be temporary because the sales ratio of the direct store is proud of it.

"45% of sales results come from direct sales."

Zhuang Tao said, "Direct stores must be the basis for high growth in the future."

By the end of the first quarter of 2011, there were more than 3800 stores in the United States, including more than 700 direct shops and 3100 stores.

And discount stores, or factory stores, have been put on the agenda by the United States.

"The sale form of the discount store is complementary to the selling store, and it will also promote the discount store as a regular sales model."

Han Zhongwei, an American fashion director, said.

Cash flow has no effect?

But even so, Smith Barney's cash pressure has been there since last year.

According to the annual report, as of the end of 2010, its listing and financing net amount of 1 billion 335 million yuan, leaving only 44 million 710 thousand yuan.

The net cash flow generated by business activities was -10.53 billion, down 223% from the same period last year.

"The phenomenon of operating cash flow deficit in 2010 was caused by the peak time of product storage and the peak of sales, not because the product was unsalable."

Han Zhongwei explained that "the first quarter operating cash flow deficit has dropped to -718 million, and will not affect daily operations."

In its view, even if the storage capacity of the summer clothing remains high, the capital flow is normal.

At present, there are still about 2000000000 credit lines not used.

"In addition to lending through banks, we can issue short-term financing bills to raise the funds needed for operation, and the financing cost is relatively low, so the temporary cash flow deficit will not adversely affect the subsequent operation of the company."

Han Zhongwei said.