In The Transformation Of Modern Boulevard, There Is A Vicious Circle Of Increasing Profits But Not Increasing Profits.

The modern Boulevard of the headquarters building has been listed in the market since 2012, and has been trapped in the vicious circle of increasing revenue and increasing profits during the continuous transformation.

Transformation

When it was first released in 2012, Chad Nu Di Road (now called: Modern Avenue) has already smelled a chill.

At that time, the main business of the company was the brand senior men's wear of the card slave Road, which was sold through offline outlets.

The company's initial public offering raised 380 million yuan, of which 344 million yuan was planned to invest in the marketing network construction for 186 new marketing outlets.

With the strong Internet attack, the traditional department store industry has no longer worked together by increasing its sales performance.

2013 - the first full accounting year after the listing of the company was hit hard. Thanks to the increase in the number of stores from 443 last year to 531, the year-on-year revenue grew 25.61% to 799 million yuan, but net profit fell to 15.56% yuan to 149 million yuan over the same period.

Even so, the profitability of the card road is still strong.

This year's decline in performance has made the company deeply aware that the traditional department store industry is undergoing profound changes. If the company can not make timely and effective adjustment of its business in the future, the consequences will be unthinkable.

Winter seems to be faster than expected.

In 2014, the company's revenue and net profit fell for the first time, down to 90.01% yuan to 14 million 920 thousand yuan compared with the same period last year.

In order to withstand the cold winter, the company began to shut down its operating efficiency. The total number of stores at the end of the year was 465, 66 less than the end of last year.

Under the pressure of the situation, the company touches the net for the first time and sells off season products through the third party platform vip.com.

Based on the judgment of the development trend of the industry, the company launched the 01MEN - focusing on high-end consumer buyer stores, and by the end of 2015, it had rapidly opened 4 stores inside and outside the country.

During the period, the company continued to invest on the high-end boutique buyer's store (LanKaFul) in Hengyang, a small SHOPPING MALL with a light and luxurious location.

swing

The series of transformation did not reverse the declining performance of the company in time, but it was affected by the cost and profitability of the construction period, which left the company's short-term performance under heavy pressure.

In 2016, the company's performance collapsed completely, the net profit of its mother fell 2908.09%, a huge loss of 287 million yuan, and none of its 14 main subsidiaries were profitable.

Especially in Hengyang, Cafu lost 30 million 743 thousand and 900 yuan and 83 million 905 thousand and 200 yuan in 2015 and 2016. In 2017, the company transferred the 53% stake in Hengyang and Cafu to the controlling shareholder Ruifeng group.

The 01MEN buying shop that invested heavily in the company also faced major adjustment in 2016, and a large number of stores closed.

In March 2016, the company renamed the 002656.SZ from the card road, and released the five year strategic plan. It will combine the "Internet +" background to form a new business mode of "entertainment, socialization, art and mobile", and build the modern fashion chain of modern Boulevard fashion group.

In those days, the company planned to be happy with the development of mobile Internet applications. The company said that Yuet ran mobile Internet social networking tools application product development technology helps to build a global fashion business platform for listed companies, and helps to actively promote listed companies to embrace the "Internet +" fashion industry.

But from the later development perspective, the company's acquisition of Yue's heart is only a short-term consideration of relieving the pressure of performance.

After 2016, the modern Avenue accelerated to embrace the electricity supplier, and once hoped to break through through the self built electronic business platform "modern Avenue".

Zebra consumption has been found by several mainstream app stores. At present, the APP of modern Boulevard is hard to see.

dilemma

Happy and optimistic will become the performance of modern Avenue. In 2016 -2018, Yuet ran accumulated a total net profit of 155 million yuan, exceeding the performance promise, and the net profit in the 3 years was -2.48 billion yuan.

That is to say, if it is not pleasing to the heart, the modern Avenue will lose more in the past 3 years.

Because the development of the third party e-commerce platform and the company's expansion from single clothing business to cosmetics, bags and other categories (SKU increased by more than 20 times), the company's operating income rose sharply to 1 billion 560 million in 2018, up nearly 70% compared with the same period last year. However, the performance declined further, and the net profit was only 16 million 710 thousand, down 41.02% from the same period last year.

In 2018, the company resorted to successive acquisitions.

At the beginning of the year, the company planned to buy jewellery and electricity supplier Harbin Mai yuan and another Internet Co -- this Internet Co has a synergistic effect with Yue's heart.

After more than two months, the merger ended because the interests of all parties failed to reach agreement.

After a brief stopover, the company planned to buy and sell the international brand in China for 4 months.

Subsequently, the company changed its behavior to sell assets for sale. It plans to sell 100% of the company's headquarters buildings and subsidiaries to 2 billion 240 million yuan to sell to the controlling shareholder Ruifeng group.

The company said that asset sales would help companies optimize their finances and further focus on strategic upgrading.

The sale of assets has been terminated for many reasons.

Until this time, the company plans to sell the headquarters building, with an estimated value of 975 million yuan, which has shrunk by 545 million yuan compared with the previous estimate of 1 billion 520 million yuan.