IPO restart, finally , there has been re- listed sports Jordan hopes . Since 2012 , Jordan has been under NBA famous sports star “Jordan” lawsuits have ridden , two from Jordan a name and image on the right so that the lawsuit should have got the approval of the listing of Jordan sports stop.
Today, the lawsuit is still in progress , who wins inconclusive. But the best prospects in the development of the industry , business development during the most fierce sports not get approval of Jordan , at the start of the second half of 2011 experienced a cold snap swept the Chinese sporting goods industry under the impact of a significant decline in profitability is an indisputable fact. To fight for the market, although Jordan sports secretly done a lot of inflated profits , less impairment and other small hands and feet , but in the past two years, almost all of the domestic sports apparel companies have suffered losses or sharply lower results for the performance of the background , stubbornly high short-term pressure on the stock is still insurmountable Hom .
Brand value of the hidden secrets of intangible assets not included
Jordan sports in the prospectus (draft report ) introduction to the sport of competitive advantage in Jordan , the first competitive advantage is its brand to compete with the NBA star “Jordan .” Jordan claims that its high-profile sports “brand is the core of the company , the most valuable intangible assets ” and that ” the company over the years to build China’s national sports brand as the goal, closely around the Jordan brand positioning , values and personality, the sports competition beyond the fighting spirit and integrate them into the company’s business culture . ” Obviously, ” Jordan sports” brand plays an important role as an intangible asset in sports in Jordan .
However, the Jordan brand sports not included in the intangible assets to be accounted among intangible assets, according to the prospectus (draft report ) 259 Details intangible period ending June 30, 2011 , Jordan sports intangible assets constitute the ” land use rights ” and ” software ” , the book value of the total 65,921,000 yuan , which did not include ” the most central and most valuable ” intangible Jordan sports claimed – brands.
Brand is added to the product manufacturer ‘s logo. After the formation of the brand registered trademark owned enterprises that have access to legal protection of its exclusive right to use , and trademarks, the brand has become the physical manifestation . In the history of sports development in Jordan , “Jordan” Jordan sports brand early survival , so that was an important factor in the development of mid- scale expansion. Therefore, in the constitution of intangible assets , Jordan sports should not allow 136 registered trademark absent. But why not put Jordan sports 136 brands included in intangible assets on behalf of the trademark it ? There accountant who told reporters: “trademark has useful life should be amortized over the useful life ; trademarks with indefinite useful lives should be tested annually for impairment at the end .”
Situation from the previous company , the brand value of Jordan sports a trademark owned by 136 representatives , will no doubt become a highly valued intangible assets , which is the sport with the NBA star Michael Jordan “Jordan” brand to compete for important reasons Jordan . But everything has its pros and cons , the Jordan brand as a high value on the other side of intangible assets are amortized each year will bring huge profits Jordan sports some damage , so the high value of the “Jordan” brand does not included in intangible assets , really added a lot of profit for the Jordan sports .
At the same time , with two lawsuits between Michael Jordan from the current message is still yet to see the final conclusion , in fact , win Hao Hao defeated , so that consumers had a misunderstanding with Michael Jordan about the “Jordan ” brand has lost its inherent sanctity, sacredness and this may lead to the disappearance of a very significant change in the existing consumer groups , the simple pursuit of “Jordan ” should consumers would be reduced , and ” Jordan sports ” in the ” Jordan” two brand value word will also be greatly reduced , if the ” Jordan Sport ” brand is really included in intangible assets , then it will be a great asset impairment .
Accounts receivable high prevalence of credit distribution model
Jordan sports in the development process , in addition to important reasons , ” Jordan ” brand as part of its early existence , medium-term development , so that the massive expansion of the dealer model is also an indispensable factor. However, the country has matured dealer mode has happened in Jordan sports distorted .
Jordan sports sales take two forms : direct sales stores and dealers, where its main distributor sales model . Its prospectus (draft report ) shows that ” during the reporting period mainly revenue from product sales to authorized dealers , this business model is dominated by the dealer or authorized by itself all shops selling goods to the end consumer .” . For dealers, Jordan sports sales model to sell products using futures , that is, ” the dealer to Jordan Sports ordering and paying 20% of the order amount as deposit , then Jordan sports deliver products , to get the balance due .”
In the dealer mode , dealers purchase directly from manufacturers, and then resell sales get spread . Dealer business model for the greatest benefit is the business of the dealer is not credit but actually received the money, effectively ensuring the cash flow. Therefore, under the dealer mode , the level of corporate debtors relatively low , good cash flow. However, the operation of Jordan sports watch , its accounts receivable soared in recent years appears to the first half of 2011 , Jordan sports receivables Total assets reached 24.65% , accounting for 34.25% of revenue , there are exceptions.
In the accounts , the accounts receivable are operating receivables subjects, its natural features , making the subjects become financial fraud , inflated profits hardest hit. The so-called accounts receivable refers to the account accounting enterprises from selling goods , materials, services, and other , monies collected should purchase units , as well as transport fees and disbursements due and not received acceptances commercial acceptance bills paragraph. Receivables arising main business income do not imply the formation of cash inflows, receiving just the right business. Prior accounts receivable recovery , corporate profits just called the book profit , is a digital concept rather than a reality profits. Therefore , debtors can easily be artificially operation, due to this feature , debtors often become a tool for unscrupulous companies to manipulate profits.
If a company’s accounts receivable abnormal , then this company should be worth the financial investor attention. Situation analysis of the corresponding Jordan sports , Jordan sports receivables jumped possible for two reasons , one of which is Jordan sports to impact listed inflated income , making big profits make the results look even better , the risk of doing so is after the listing inflated bubble burst , revenue slowed net profit fell ; second is a large area dealers credit , but if so, it is clear that Jordan is to give up the advantages of sport on their business model , operating on the initiative to give up Jordan sports pricing will be challenged , lower prices inevitably bring profits diluted , will eventually return to net profit decline. No matter what kind of reasons for investors, is not good news.
Transaction costs associated with the dealer striving family norm
“Red Week” reporter through in-depth research, found a dealer mode may cause distortions in Jordan sports happening – Jordan sports dealer contains a number of related enterprises .
Jordan sports prospectus (draft report ) shows that in 2011 , Jordan had a wide range of sports dealer consolidation , a number of dealers in the sales contract in 2011 after the completion of the first half , with the exception of land already owned the local channels, business Jordan handed over to the overall sport , its existing distribution channels , business and sports personnel and Ruqiao Dan newly formed subsidiary .
So with Jordan sports , it is unusual. How, Which dealer will open up channels for their hard , familiar business over to people ? Information tells the whole story . Jordan sports prospectus (draft report ) shows that dealers are integrated in Wuhan Yuan Xiang, Shanghai Brilliance Yi, Ningxia Yum , Guiyang Lianguan , Shijiazhuang, Chengdu Ding Bo Lele high and all of Jordan sports related enterprises , are actual control family members who create, from 2008 to 2010 , this six associate dealer sales revenue accounted for 9.34% of Jordan sports revenue , 11.26% , 8.08 %, and as of June 2011 , Jordan sports a total of 53 dealers home.
There are professionals who are familiar with the dealer mode , told reporters that ” the general dealer mode , dealers are cash to take stock , dealers at a disadvantage , the manufacturer is located upstream of the channel , with pricing power, has a natural advantage ,” but Jordan Sporting some dealers to control the actual controller family , sports game with Jordan , Jordan sports lost its natural advantage. Jordan sports reasons for the high level of accounts receivable , will be occupied this part of dealers ‘ purchases of goods company resources ? Or is this part of the dealers listed for Jordan Sports smoothly with inflated income ? Either way , Jordan sports in association with these dealers are not difficult to apply . Either way , Jordan sports will also harm investors .
Sports apparel industry ranks high inventory levels in cold
Jordan sports in this time waiting for the IPO , the textile industry experienced a dismal market, domestic sportswear brands difficult, challenging high inventory became insurmountable .
According to the statistics, Li Ning , Anta , Peak , China Dongxiang , Xtep , 361 ° six domestic sports brand , for example, in 2011 , six major domestic sports brand stocks totaled 3.699 billion yuan ; 2012 , six major domestic sports brand stocks totaled 3.324 billion yuan ; into the first half of 2013 , the brand did not reduce the pressure on the stock , six major domestic sports brand stocks totaled 3.029 billion yuan .
In such a high pressure on the stock , Jordan stock pressure sports are able to reduce ? Jordan sports according to data released by the current point of view , the situation is not optimistic about the company’s stock , the prospectus statistics show that in late 2008 to June 2011 , Jordan sports inventory was 512,464,800 yuan , 380,204,200 yuan , 281,930,100 yuan , and 364.48 million yuan , accounting for the proportion of current assets were 29.23% , 20.66% , 25.28% and 49.43% .
High inventory bring high pressure, making difficult business clothing industry . In 2012, Li Ning, the company reported losses of nearly 20 billion yuan, net profit fell 612.98% , operating income decreased 24.55% ; Anta net profit fell 21.47% , operating income decreased 14.21% ; Peak net profit fell 60.06% , operating income declined 37.49 % ; Xtep net profit fell 16.18% , operating income increased slightly by 0.09% ; 361 degrees net profit fell 37.58% , operating income decreased by 11.98% . Although China Dongxiang improved 72.93% net profit to 177 million yuan , but its sales fell 35.18 percent year on year , the entire garment industry a dismal .
In order to digest the high inventory, the clothing brands have a discount in the second half of 2012 , closed shop . According to media statistics , Li Ning , Anta , Peak , China Dongxiang , Xtep , 361 ° six major domestic sports brand , the store closed down in 2012 to nearly 5000 ; alone Li Ning company, shop it decreased from 2011 in 8255 to 2012, 6434 , closed 1821 . In the first half of 2013 , six major domestic sports brand behind closed doors up to 2249 the total number of stores , the average daily shut shop 12 . In this context , Jordan sports safety can not Wet ?
Language trends extremely sensitive sportswear industry , inventories showed rising trend will undoubtedly increase the Jordan sports breakage pressure on the company’s performance will be a giant in terms of mines, while Jordan sports once allowed to get approval after the IPO, which raised investment project, once put into production line will further increase its pressure on the stock of other companies in the same industry operating a bleak backdrop , it also can continue to maintain its profits continue to grow ? “Red Week” reporters will continue to focus .
