Bird Wings: A Wrong Step, A Missed 4 Year.

Lin Tianfu once had a big dream: to create a "all-around sports company".

4 years later, the dream was broken.

The cost of the dream was heavy. Lin Tianfu dragged himself and the whole bird into a deep mire.

　 A wrong step

January 24, 2014 is the highlight time of the precious birds. This day, the head of the company "A shares movement brand first share" aura landing at the Shanghai Stock Exchange.

To this end, Lin Tianfu, founder of 603555.SH, spent 28 years.

After the listing, the company's share price climbed all the way. Lin Tianfu rose to the top of the 2015 Hurun rich list in 19 billion place, squeezing Shi Wenbo, the Heng An Group, to the top of Quanzhou. Today, the total market capitalization of the precious birds is only 2 billion 841 million yuan (closing in September 20th).

With the platform of listed companies, the financing channels of expensive birds are expanding rapidly.

The company's initial public offering raised 900 million yuan and invested in 4 major projects, including the national strategic store and shoe production base. At the end of that year, the company issued 800 million yuan bonds to improve the debt structure of the company.

Lin Tianfu is no longer satisfied with the "noble bird", but only produces and sells sports shoes and clothing, and begins to implement the company's comprehensive strategic upgrading -- from "traditional sports shoes and clothing industry" to "sports industry group based on sports apparel manufacturing and coordinated development of various sports industry forms" transformation.

This most primitive impulse comes from the country's policy of accelerating the development of sports industry.

According to internal analysis, the sports industry mainly consists of three parts: sports competition, entertainment industry, sports consumption service industry and sports goods manufacturing industry. At present, China's sporting goods manufacturing occupies a relatively large proportion in the industry. With the development and maturity of the industry, the former two will surely develop vigorously.

The precious birds began to use capital means to expand their sports industry territory quickly.

In 2015, the company's first important investment was invested in tiger puff, becoming the second largest shareholder of the company. With the help of tiger pads, we should speed up the investment speed by making up our short board in the sports industry.

Then, the precious birds invested and huppu set up sports industry fund Huai mobile domain capital, looking for the sports industry's target.

At the same time, the company announced that it invested 20 million euros to invest in Spanish football brokerage firm BOY.

Immediately after that, the company put in another 200 million yuan to pull up the general association and tiger flop to set up Kang Pai Si, in order to cut into the college sports industry.

In 2016, the company again joined tiger tiger to set up the second sports industry fund competition domain.

By the end of 2017, the precious birds had invested 700 million yuan in mobile capital. According to the survey, the company has invested 31 companies overseas, including football, basketball, running, fitness, outdoor sports and other Internet plus projects, including sports, sports lottery and other Internet related projects. It has even invested a lot in sports and coffee industry operators in Shanghai, GOGO.

In addition to relying on the layout of the sports industry, tiger also accelerates the expansion of traditional sports shoes and clothing business.

In 2016, the company invested 383 million yuan to acquire 50.01% stake in Jay's line under the sports shoes and clothing line, and 51% equity in the shoe brand of sports shoes and clothing online.

In the same year, the Chinese market authorized by AND1 brand was more than 26 million dollars.

In 2017, the company acquired a 49% stake in the shoe store for 368 million yuan, invested 150 million yuan through the bank's trip to become another shareholder of the sportswear and footwear line, Hubei Sheng Dao sports 45.45%, and authorized the PRINCE in China and South Korea for 20 million euros.

If hundreds or billions of investments were made before, the company planned to buy chain fitness agency Conway fitness (its brand "Welsh") by 2 billion 700 million yuan in 2017. It is the company's intention to expand its skills in the sports industry.

However, the acquisition ended in failure.

Missed 4 years

In the short term, the overseas investment of high birds and birds has not been able to achieve the desired effect.

The scale of the company's revenue increased linearly from 1 billion 920 million yuan in 2014 to 3 billion 250 million yuan in 2017, but the net profit from the parent company came down from 312 million yuan to 157 million yuan.

With the expansion of the company, as the core of the company, the brand of expensive bird has obviously shrunk.

In 2014 -2017, the gross profit margin of the brand was reduced from 40.99% to 37.84%. During the same period, the scale of brand revenue dropped from 1 billion 920 million yuan to 1 billion 796 million yuan, and the retail terminal of the brand was reduced from 5026 to 3730.

The company's asset liability ratio soared from 46.84% in 2014 to 65.36% in 2017, and the financial cost increased from 51 million 180 thousand yuan to 228 million yuan.

The declining performance, coupled with the sudden financial tightening in 2018, has threatened the safety of the entire company.

Owing to the change of external economic environment, the scale of financing of the precious birds has been greatly reduced, and the original financing plan for the central, short and foreign debts has not been implemented. In 2018, the problem of tight liquidity has emerged.

In those days, the company obtained funds through asset sales and other ways, and accumulated a net repayment of nearly 1 billion 800 million debt (including principal and interest), which ensured the company's good credit.

In 2018, the company went out for a long time to sell Jay, Kang Pai Si and Hu Po equity. BOY continued to invest and was stopped.

At the same time, the acquisition of 14 provinces and cities in the province distributor channels to direct camp.

Under the double pressure of business and debt, after 4 years of running on the road of "all-round sports", the noble bird finally decided to "return to the main business" in 2018.

This has devastated the company's strategic layout of 4 years.

In 2016, the company acquired Jay's Bank and its shoe store for the layout of sports retail sector. It hoped to develop the new retail business with the synergies of the two companies, and bring the brand of AND1, PRINCE to the market.

However, the centralized payment of debt has occupied business operation funds, and at the same time, it is difficult to carry out the new retail business under the control of the non independent brands of the supply chain links, which leads to the company's business synergy hindered, the strategic layout slows down, and the sports industry layout risk gradually appears.

Reluctantly passed the year 2018, the debts of the early expansion of the precious birds reached the point of centralized repayment.

As of the end of 2018, the company has two bonds (500 million yuan and 647 million yuan) to expire within one year.

Semi annual report shows that as of the end of 6 this year, the company has 125 million yuan in currency capital, but short-term loans and non current liabilities due in one year totals up to 2 billion 170 million yuan, and monetary funds can not cover short-term liabilities.

Combined operation in 2018 and substantial losses, the joint rating lowered the main long-term credit rating from AA to AA- in June this year. Just 3 months later, according to the semi annual report issued by the company in 2019, the credit rating of the company was further reduced from AA- to A, and the rating outlook was changed from "stable" to "negative".