Not Working Properly: The Market Value Has Shrunk More Than 10 Times.

When the peak value of the market has reached 40 billion yuan, the noble bird is expecting to regress to fitness by returning to its main business. The information released at the 2018 annual general meeting of shareholders shows that the company has changed its long-term strategic plan to "return to the main business" and expand the company to become a multi brand, multi market and multi-channel sporting goods company. At the same time, the business plan is adjusted to "strive to achieve profitability in 2019" after experiencing 2018 performance losses. You have been trying to diversify after listing, and have been implementing the M & a transformation plan. However, the diversified transformation has accelerated the decline of the profits of the birds and the market value has also shrunk to 1/10 below the peak. In the eyes of the industry, it is too late for the birds to return to their main business. However, a correct choice has missed the development stage, and will face many questions in the future.

High profile return industry

For the specific measures to "return to the main industry", the "bird in the birds" announced in the announcement that it will consolidate the operation ability of the "noble bird" in the traditional sports shoes and clothing industry, at the same time, embrace the Internet actively, take the strategic cooperation of Jingdong as an opportunity, strengthen cooperation with the Internet business platform, vigorously promote the multi brand efficient operation mode including the new brand, strengthen the brand operation, and make it solid. The brand of "noble bird" increases the investment and promotion of AND1 and PRINCE brand, and focuses on the introduction of new international brands to enhance the brand premium capability, so as to enter the middle and high-end market, and strive to expand the "noble bird" into a multi brand, multi market and multi-channel sporting goods company.

Founded in 1987, it has been over thirty years ago and is an old brand enterprise. In 2002, under the leadership of chairman Lin Tianfu, AND1 began to develop its own brand "noble bird". Its brand also includes AND1 and PRINCE.

Since then, the giant bird has invited Andy Lau and Cecilia Cheung as spokesmen for brand image. With the star effect of Andy Lau, the great bird quickly became angry. In 2007, the precious birds also sponsored the "Happy Men's voice" of Hunan satellite TV, so that more people learned about this brand and the fame of the great bird also increased greatly.

Guo Bin is impressed by the marketing of expensive birds. He said in an interview with the Beijing Commercial Daily reporter: "what impressed me most is the invitation of Hongkong superstar Andy Lau as spokesperson, instantly enhancing his popularity in entertainment and sports."

It is worth noting that the birds have been trying to diversify after listing, and have been implementing the M & a transformation plan. In 2014, the noble bird proposed to upgrade from "traditional sports shoes and clothing industry" to "sports industrialization group based on sports apparel manufacturing and coordinated development of various sports industry forms". At present, the "noble bird" has formed a preliminary diversification pattern in sporting goods, sports games, insurance, retail, e-commerce, competition lottery, paid reading and so on.

The lens went back to 2015. At the beginning of the year, the precious bird bought shares in tiger sports and became the second largest shareholder with 240 million yuan. In July of the same year, it returned 20 million euros to The Best Of You Sports, S.A, a Spanish football company.

In 2016, the transformation of birds is more frequent. Not only has it bought the exclusive operation rights of the US basketball equipment brand AND1 in Greater China, it has held the following line of retail channel, Jay's trip and the famous shoe Library Network Technology Co., Ltd., which has invested in Xing you tech's layout of Internet sports games, and also announced the registration of Xiang an insurance broking company, and intends to jointly launch 7 companies with Xinjiang Guanghui Industrial Investment Co., Ltd. and Hong Kong Group. Li Ankang insurance.

In 2017, the precious birds wanted to lay out the field of sports fitness. They planned to buy a 100% stake in Welsh's fitness company, Wei Kang, at a high price of 2 billion 700 million yuan, but failed in September of the same year.

In connection with the specific measures and timetable for returning to the main industry, the Beijing Commercial Daily reporter contacted the birds, but as of press release, no reply was received.

Diversification is not fun.

However, diversification has accelerated the decline of profits. In 2016, the precious birds began to lose money. At that time, the total income of the precious birds was 2 billion 279 million yuan, up 15.74% compared to the same period last year, but the net profit attributable to them declined 11.81% to 292 million 700 thousand yuan compared with that of the previous year. In 2017, the loss of the noble bird continued to expand and its net profit fell 46.25% to 153 million 700 thousand yuan.

With the decline of profits, the precious birds had to start the strategy of closing stores. In the first quarter of 2018, the company closed 55 shops and closed 376 in 2017. By the end of 2018, according to the annual report, there were 1438 newly opened stores and 1 closures, and 515 new distributors and 2809 houses were closed.

In the eyes of many people in the industry, 2018 is also the most tested year in the history of the development of your bird. According to the annual report of 2018, the company achieved a net profit loss of 693 million yuan and a net loss of 685 million yuan attributable to shareholders of listed companies.

The main reason for the performance loss is that the company mainly refers to the difficulty in financing the company and dealers, as well as the decline in gross margin and the decline in sales revenue.

In addition, it has been reported that the market value of the birds at the peak has reached 40 billion yuan, so the market value has shrunk to about 3 billion 300 million yuan, not only the 1/10 at that time.

The views of industry experts are basically the same for the loss of performance and market capitalization of the birds.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd. believes that the "noble bird" has been on the brink of the second tier of the domestic sports brand, and even slipped to the third tier. The main reason is that the main energy of the noble bird is not in the main industry, but relies on the development of "Pan sports". According to his analysis, in view of the huge losses in recent years, the multi brand and multi-channel development mode has not been effective. In fact, the popularity of A in the A-share market is much better than that of other sports brands listed on the Hong Kong stock market, but it is clear that the birds have not been able to make good use of them. At the same time, the birds have also fully relied on market driven growth, causing the "malnutrition" of the birds.

The so-called Cheng Cheng Xiao He is also defeated by Xiao He. After listing, you can use a good capital platform to learn the support of funds, and then promote the transformation and upgrading of enterprises. However, there is a problem of declining performance, such as the decline of performance, that is, not concentrating on the main business, but diversifying and investing in the whole sports industry, and the business of investment is relatively weak, and there is no chemical reaction. Zhang Qing, founder and President of Beijing key road sports consulting company, said that this series of investments of "noble bird" is the background of the "full bubble" of China's sports industry in the past five years, which has led to such a result.

Guo Bin said: "the loss of expensive birds, first of all, before the layout in a number of areas, paid a lot of layout costs and growth costs, in the absence of strong income to protect the main industry, blind expansion led to a substantial increase in operating costs; secondly, the core competitiveness is not outstanding; third, the related extended industries are relatively scattered, and did not play a major role in the industry. Replenish and support, it costs a lot of energy. "

"Fitness" meets new questions

As a matter of fact, the birds have narrowed their diversification. In August 2018, the company announced that it would take part in the disposal of some sports industry assets, revitalize the stock assets and ensure the sound operation of the core brand sports equipment business. It intends to hold a 37% stake in the Beijing Sports Management Co., Ltd. (hereinafter referred to as "Kangpai sports"), and 37% stake in Beijing sports Consulting Co., Ltd. Referred to as "Kangpai consultation", it was transferred to Limited by Share Ltd, the national sports city of Jinjiang, with the transfer amount of 125 million 200 thousand yuan and 8 million 114 thousand and 200 yuan respectively. After that, the precious birds no longer hold the shares of Kangpai sports and Kangpai consulting.

At the same time, the price of the 13.66% stake in tiger sports is priced at 273 million yuan, which is transferred to Shanghai Ding Dian asset management company.

In September of the same year, the bird made a plan for its development in the second half of the year. The announcement said that in terms of industrial layout, you will look for quality targets with obvious profitability and mature business models, or join hands with leading enterprises in the industry to promote the brand new business development of existing and future brands and business models, and jointly promote industrial layout. In the traditional brand business, the "noble bird" will lock the brand existing channel resources, further close to the terminal market, optimize the sales mode of the brand, and gradually extend from the "retail oriented" wholesale sales mode to the "retail centered" direct or direct sales mode.

Zhang Qing said that the "noble bird" is currently in the third tier of the domestic sports brand, and the strategy of "returning to the main industry" is undoubtedly "right". Zhang Qing reviewed the development path of the "noble bird", and thought there was still a considerable bright spot: "the biggest highlight of the bird is to become a public company on the main board. In fact, many brands that are in the third tier want to go public both inside and outside the stock market, but they fail to achieve them.

As for the "2019 year's efforts to turn losses into profits" and "make efforts to turn them into a multi brand, multi market and multi-channel sporting goods company", Zhang said that the "noble birds" still face some challenges. Therefore, if there is no distinctive brand imprint and professional degree to support, this road will be very difficult to walk. In the future, you should focus on product strength, channel power and brand power.

Cheng Weixiong said bluntly that at present, in the rapidly changing domestic sports market, the precious birds have missed the development window period. In the future, you want to better develop, you need to distinguish between brand primary and secondary relations, and focus on sports market segments.

Guo Bin expressed concern about the multi brand strategy of "noble bird". He said, at this time, the multi brand strategy of the great bird is very risky. Under the current fierce competition, it may have the risk of dispersing energy and downplaying the core competitiveness. "At present, the competition of sports shoes and clothing is very fierce. It is suggested that we should do fine, specialized and technical content in some niche sports products." In addition, Guo Bin said: "the domestic sports brand must first be confident, and we should inject national culture into the development of the brand, highlighting the national characteristics." Beijing Business Daily reporter Qian Yu white poplar