Expensive Birds Face Downside Difficulties, Mergers And Acquisitions, Transformation Of Sports Industry

With the acquisition and holding of Hubei Jay trip Sports Co., Ltd. (hereinafter referred to as "Jay's trip") in June this year, the birds in the sports industry are further ploughing. Jay's main sporting goods and its control are undoubtedly strengthening the right to speak in the lower reaches of the sports industry. You are no longer a traditional bird. Clothing enterprise It is a sports industry flourishing through the draught.

In the middle of the sports industry, the precious birds have already participated in tiger sports. Tiger sports is currently planning for landing A shares.

Almost at the time of the acquisition of Jay, the company announced that it was co sponsored by Tiger sports and Jing Lin investment to create and manage the sports capital fund.

The layout of the sports industry from bottom to top is very fast. Less than 3 months after the acquisition of Jay, it invested 382 million 500 thousand yuan in September 3rd to acquire a 51% stake in Xiamen's shoe store. The latter is Xiamen electric business footwear "big guys", the two "marriage", causing the industry's concern.

Behind the Huai bird's positive embrace of sports is that the latter has become a hot spot in the capital market. Huge output value space attracts capital to surge, and Industry Valuation runs all the way.

　 Mergers and acquisitions

This year, there have been many stories about the sports industry around the world, which did not happen in the past.

This is due to the 46 document of the State Council in 2014. The document clearly puts forward a development goal: by 2025, the total scale of sports industry will exceed 5 trillion yuan. This is undoubtedly a clear policy signal for the investment in sports industry.

Policy support brings capital to the sports industry. According to incomplete statistics by reporters, there are over 40 listed companies in the sports industry layout, among which the housing enterprises and BAT are most enthusiastic, and the main businesses of these companies are not related to sports.

In contrast, the clothing industry is closely related to the sports industry. Strictly speaking, the "noble bird" can be regarded as a sporting goods business, but because of its industry attributes, it is the most downstream industry.

"What we want to do is the first sports company in China. The development of all kinds of sports will lead to competitions at all levels. These events will, in turn, become the source of media content. Chen Yizai, President of the noble bird, mentioned in the press conference.

From a sporting goods company to the sports industry first company transformation, this year's capital has been running continuously. 3 major mergers and acquisitions occurred in the three quarter of this year.

In early June this year, Guirenniao The announcement said it would invest 383 million yuan to share some of its equity in Hubei's Jay's trip and increase its capital. After the completion of the transaction, the company will hold 50.01% of Jay's stake and become its controlling shareholder.

Jay's trip is the main business status of this stage as a sports collection shop. Its business scope is the development and operation of sporting goods, general merchandise and Sports City, sports events planning, sports brand development, sporting goods storage and so on.

It is not hard to see that after the holding of Jay's trip, the "noble bird" not only expanded the scope of sporting goods business, but also made other extensions in the sports industry chain. But the extension is just the tip of the iceberg.

In July 25th, the precious bird announced that it would invest 100 million yuan to increase the capital of Shenzhen Xingyou technology and become the largest shareholder. According to public information, star technology is an Internet sports game supplier. This also means that in the field of sports games, there are also good birds.

However, the ambition of the noble bird is more than that. In September 3rd, the precious bird invested 382 million 500 thousand yuan to acquire 51% of the Xiamen shoes brand owned by Xu Songmao, Huang progressive and Tang Xinye. The expensive bird said the acquisition is to improve the company's channel layout.

Behind the massive external investment mergers and acquisitions, the expensive birds' finances are not healthy. In the first quarter, the net cash flow generated by the company's business activities was -2.78 billion yuan, and the net increase in cash and cash equivalents was -1.95 billion yuan. In the first half of this year, this figure continued to expand, and net cash flows from operating activities amounted to -3.61 billion yuan, 209.39% less than that of last year. Basic earnings per share of 0.2558 yuan / share, a decrease of 9.93% over last year.

"Expensive birds are mainly engaged in sports apparel and supplies retail, and sports related, but belong to a more traditional industry, domestic sporting goods companies in these two years are not very good, and their performance has slipped, because their brand positioning and image has not kept pace with the upgrading of consumption. Therefore, they hope to improve their performance through mergers and acquisitions, and enter the core part of the sports industry to help improve their valuation in the capital market. For the birds and birds enter the sports industry, Li Jiachao, an analyst at Yi Jie network, told reporters.

The reporter telephoned Zhou Shiyong, a director of the noble bird, and declined the interview on the grounds that he was meeting. The reporter then sent an interview outline to him, and he failed to receive a reply as of press release.

　 Main business dilemma

Behind the frequent capital operation is Costumes for main birds For a long time, the industry is facing a downward trend.

In 2012, it was worth 2 billion 800 million yuan. After 4 years, it fell to 1 billion 970 million yuan at the end of last year. At the same time, the net profit was also reduced from 500 million yuan in 2012 to 150 million yuan at the end of last year. Net profit in 2015 was only 33% of that in 2012, and net profit in the 4 years was down 66%.

Behind the decline in both net profit margins is the overall downturn in the apparel industry.

Flush statistics show that in the first half of this year, 45 out of 79 textile and apparel listed companies achieved net profit growth, while another 34 companies showed a decline in net profit.

In addition to performance losses, apparel industry stocks also reached a peak. In the first half of this year, the total inventory of 79 textile and apparel listed companies totaled 81 billion 366 million yuan, an increase of about 4 billion 467 million yuan over the 76 billion 899 million yuan in the first half of 2015.

With the high loss and high inventory, there is also a tide of clothing industry closing. In the first half of 2016, many brands in the clothing industry closed shop, less than a dozen or more.

Although the brand marketing network has covered 31 provinces, autonomous regions and municipalities directly under the central government, the number of retail terminals has reached 4313, of which 4 are direct outlets. In the first half of the year, dealers closed 354 retail terminals and opened 202 new ones. In the second quarter of 2016, there were 131 new retail outlets and 206 closed dealers.

In the overall downturn of the industry, the performance of 2015 is still rising slowly.

According to the annual report, in 2015, the company achieved 1 billion 969 million yuan of business income, an increase of 2.57% over the previous year, a net profit of 332 million yuan (all attributable to the parent company), an increase of 6.28% over the previous year, a net cash flow from operating activities of 599 million yuan, and a net increase of 259 million yuan in cash and cash equivalents. In the case of overall revenue growth, the main business income of the company was 1 billion 968 million yuan, an increase of 2.59% over the previous year.

Good scenery does not last long. By the first quarter of this year, the increase in operating costs has become an unavoidable problem for expensive birds. In the first half of the year, although the company achieved 1 billion 18 million yuan in revenue, an increase of 0.13% over the same period last year, while the operating cost was 582 million yuan, an increase of 6.09% over the same period last year. The net profit was only 157 million yuan, down 9.90% from the same period last year.

Big sports strategy

The main business development bottleneck into the bottleneck of the birds, began to transform the sports industry. Since 2014, the precious birds have consciously prepared for the layout of the whole industry chain of sports industry.

"From 2014 onwards, the company from Traditional sports footwear industry To upgrade the sports industry group, which is based on the manufacturing of sporting goods and clothing, and coordinated development of various sports industry forms. This is what you call a bird in this year's non-public offering plan.

After establishing the strategy of big sports, the precious birds first invested in tiger sports.

Statistics show that as early as January 2015, the Quanzhou bird Investment Company Limited (hereinafter referred to as "Sheng wing investment") jointly invested and established the Quanzhou Sheng Xiang Investment Management Center (limited partnership) (hereinafter referred to as "Sheng Xiang investment"). The precious bird invested 239 million yuan to be a limited partner; the investment contribution of Sheng wing was zero, and it was a general partner. The real controller of Sheng wing investment is Lin Tian Ya, and Lin Tianya is the brother of Lin Tianfu, the real controller of the great bird bird. At the same time, he is also the father of Lin Sien, the director and deputy general manager of the noble bird, and the related party of the listed company.

After Sheng Xiang investment was established, the Quanzhou bird springs Investment Co., Ltd. (hereinafter referred to as "Quan Sheng Investment") provided a loan of 239 million yuan. After receiving the above loans, Chuen Sheng invested part of the transferable tiger tiger (Shanghai) Culture Communication Co., Ltd. (hereinafter referred to as "tiger sports") and increased its capital to tiger sports. After the completion of the transaction, Quan Sheng's investment will have a stake of not less than 15% of the tiger's sport, becoming the second largest shareholder of the company.

In addition to the deep investment, the sports industry fund Shanghai Huidu Investment Center (limited partnership) (hereinafter referred to as "mobile capital") has been invested in the sports industry fund between Huai bird and huppu sports. It has invested in 14 intelligent Internet sports projects, including "understanding the emperor", "intelligent sports ground" and "salt fish game".

"LP" and "tiger", "Jing Lin" and other established capital domain, which is a way to learn through the investment fund. As a fund LP, the capital invested by the company is controllable and controllable. When the fund is invested, it can learn. If the project will grow well in the future, it can give priority to mergers and acquisitions. Li Jiachao told reporters that "the birds of their own lack of investment teams, it is wise to give money to professional investment groups."

In addition to investment, the noble bird and Xiamen Rong one network technology Co., Ltd. jointly set up an insurance company limited to start the field of sports insurance.

From the clothing to the sports event marketing, the precious birds are also facing challenges. "The difficulty lies in the lack of a good team. The original team is mainly engaged in consumer retail, which is quite different from the sports operation. Even if a good project is acquired, there is no good team, business integration is also very difficult, and the synergy effect can not be fully reflected." Li Jiachao added, "sometimes the effect of M & A investment appears to take several years. In the case of a downturn in the main industry, whether the board and shareholders are patient enough to wait is also a test."

Regarding the layout of the sports industry from the bottom up, Zhu Qinghua, a researcher at the sports industry of CIC, told reporters: "the layout from the downstream to the upstream is more difficult than the upstream layout. The market maturity of the lower reaches of the sports industry is relatively high, the business mode is more perfect, and the development of the upstream industry is still at the initial stage of development. The content and technology level is relatively low, and the resources are scattered. The main difficulty for such sports companies as mergers and acquisitions is to choose high-quality resources and successfully integrate them, and whether the following development models and strategies can adapt to the market environment.