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How long will it take for aihong

Date: 2018-09-07
Times of browsing: 14

In June, Nike (nke), a well-known U.S. sports brand, reported its fiscal 2018 fourth quarter and full-year results, with annual revenue of $5.34 billion in greater China and earnings before interest and tax of $1.807 billion, up 20 percent year-on-year, and 16 consecutive quarters of double-digit growth.

Meanwhile, the Chinese sports equipment manufacturer bird ai hong a piece. On June 14, the stock price of guirenbird peaked at 28.9 yuan, with a total market value of 18.18 billion yuan. However, the good times did not last long. Then the stock price and the market value fell by a cliff. But in May 2015, guirenbird's share price peaked at 69.37 yuan, all of which seems unreal and illusory.

Founded in 2002, the company stood on the shoulders of giants, invited emperor star Andy lau as the brand image spokesperson, and quickly became famous in the brand's crowded sporting goods market. Entering the world of professional sports in 2005, even the American dream team 7 wore the gear of the Lord bird. Since then, it has established strategic cooperative relations with many top professional companies at home and abroad, which has enabled the brand value of guirenbird to exceed 3 billion yuan early. The constant exposure has enabled the brand image of guirenbird to penetrate into the minds of consumers and greatly enhanced its brand influence.

However, with the disappearance of the dividend of China's economic development, consumption upgrading and the advent of the digital era accompanied by economic transformation in recent years, the development of VIP bird lags behind the pace of the era. The stock market's decline is just one symptom of an unprecedented cash flow crisis that has hit its main business and failed transformation. It is understood that in order to withdraw funds and maintain cash flow, guidry sold stakes in kangpai sports and hupu sports. But the deal seems to be a desperate attempt to save the day, not a genuine attempt to save the day.

Can a bird escape birth day.

Sell assets to pay off debts

Recently, guirenbird announced that it plans to sell its 13.66 percent stake in hupu sports to Shanghai dingdian asset management co., LTD for 273 million yuan. It is reported that after the completion of the deal, bird will recover investment funds of 239 million yuan, and make a profit of 30 million yuan.

The transfer also took place in August. In early August, guidry announced that it would sell a stake of 37% in compal sports management and 37% in compal sports consulting to jinjiang national sports city. The transfer involved a total of 143 million yuan. In addition, quansheng was able to pay back all the borrowed money it owed to the owner, with the sale of its 30 per cent stake in kangpai network for $65.25 million.

It is worth mentioning that kangpai sports is the key to the layout of campus sports, and it runs many campus sports events. But neither compaq sports management, nor compaq sports consulting, are making money, according to a statement from Sir Bird.

In the first half of this year, kangpai sports operating income was 1.5518 million yuan, a loss of 80.93 million yuan. The company's net profit for the first half of the year was only 20,600 yuan. The sale of the noble bird took its toll on performance.

Up to now, your bird has obtained nearly 500 million yuan of funds through successive sales. The withdrawal of funds has alleviated your bird's cash flow crisis and temporarily solved the current urgent need. However, selling assets may not be a good thing for your bird's future.

As we all know, the return period of investment in sports industry is long, and it is difficult for some businesses to get short-term returns, but the future value is available. Your bird may be selling tomorrow.

If selling off unprofitable confetti was a way out of a loss crisis, selling the stake in tiopo sports was really a last resort. According to the latest financial report, in 2017, the operating revenue of hupu sports was 232 million yuan and the net profit was 19.294 million yuan. Although the net profit was greatly reduced compared with that of 3.157 million yuan gained in 2015, it is undeniable that hupu is a high-quality company in China's sports industry with over 50 million monthly active users.

The sport has long been seen as a model of diversification. Since its establishment in 2007, the sport has gradually covered football, fitness, board games and e-sports from the original basketball BBS. The commercialization of hupu sports is also booming, with the annual transaction volume of "hupu", an e-commerce platform owned by itself, exceeding 2 billion yuan.

Cheng hang, founder of hupu, hopes that the company will "jump out of sport" in the future to provide users with more content of healthy life and interactive entertainment.

Hupu's offline business is also remarkable. More than 20,000 people have participated in the original contest, which has been carried out in 34 cities across the country. On the self-owned live broadcasting platform, the highest number of people watching the game simultaneously exceeded 4 million and the monthly event broadcast more than 110 million times.

In this year's NBA offseason, tiger wrestler wang invited stars such as durant, harden and westbrook to participate, and his influence was greatly enhanced.

In January, the company unveiled its latest financing round, which raised as much as 618 million yuan. After this financing, hupu became a new unicorn in China's sports industry.

As an investor of the sport, guirenbird participated in the financing of the sport as early as 2015. In the past three years, hupu sport has brought 30 million yuan of profit to guibird. Among the many investment projects of guibird, the profit is very considerable.

In addition to investing in tiger sport, companies acquired by guirenbird are involved in a number of industries, including not only equipment manufacturing, but also sports insurance, fitness, lottery and electronic competition. Bird spent 20 million euros to invest in the Spanish football agency and also tried to enter the sports insurance industry, investing 260 million euros to set up ankang insurance jointly with a number of companies. In early march last year, a $2.7 billion bid to buy wellpoint, the parent company of welsh fitness, ended in failure.

The owner bird goes around, trial and error, in order to get out of trouble and find new profit growth points. But the diversity of your bird is not ideal.

Crossing borders is life and death

Guidry's 2017 earnings show that the company's transformation has not been successful. In 2017, guirenbird opened 503 new retail terminals, and closed up to 879 retail terminals, with a net closure of 376, equivalent to the annual average of one store per day. Guishanbird's full-year operating income in 2017 was 32.52 billion yuan, with net profit down 46.25 percent to 157 million yuan.

From the market point of view, the brand influence of guirenbird has long been inferior to li ning, anta and other brands in consumers' mind, let alone the gap with international well-known sports brands such as Nike and adidas.

Consumers can already feel the brand exposure of your bird has been decreasing year by year. Your bird used to be the memory of many people born in the 1990s when they were studying, but now many people are unfamiliar with your bird.

The high-fliers who used to be at the forefront of the industry are now out of business? The author referred the question to an industry insider, whose response was typical, who said: "the bird of honor has put too much energy into the sideline and neglected its main business."

The company's products have failed to make breakthrough and innovation in the past years, making it lose competitiveness in the sports brand with the fierce market competition.

"The return cycle of investment in the sports industry is often not immediate and not suitable for multi-line operations," the person said, quoting MAO zedong.

Some industry analysts and experts believe that diversity and crossover have had little effect because of the company's entry into areas it is not good at. Some acquisitions are a liability for the company rather than a smooth transition. The Lord bird has left the city in a precarious position by attacking and gaining ground on its own moat.

It felt like life was on the line, but rather than the determination of a strong man to cut his throat, the management of Lord bird was hesitant. On March 19 last year, the company announced the change of its name to "all-around sports co., LTD." but within 24 hours, the board of directors voted against the change. The noble bird is always wandering on the road of seeking change, missing the opportunity of turning.

Lao zi yun: "the way of heaven is damaged beyond repair. The way of man is not so good. Today there is a word for it, the Matthew effect. The Matthew effect is also evident in the sports industry. Anta recently released its 2018 interim results. In the first half of this year, anta reported earnings of 10.55 billion yuan and gross profit of 5.72 billion yuan, according to the data. Two enterprises, both in the jinjiang gang, may be said to be in heaven, one in hell.

But the future of the Lord bird is hard to tell, and only time will tell. Now that the stock price has stabilized, the capital market is still waiting to see if the birds can make a comeback.


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