La Natsu Bell Was "Ill At Ease" Received Regulatory Warning Letter

La Natsu Bell Hussein Ce "has not made sufficient risk hints to the performance from profit to loss", and the information disclosure is inaccurate, incomplete and incomplete. Recently, the Shanghai securities regulatory bureau took the administrative supervision measures to issue a warning letter. In fact, La Natsu Bell's 2018 abnormal performance amendment notice is the embodiment of all kinds of clues.

After La Natsu Bell's listing, the alarm for financial problems is getting louder and louder. Along with the face of the financial data after the listing, the company began to shrink strategically in the number of stores. However, after the contraction, there were such problems as cost out of control, sharp increase in inventory and receivable prepayment. In addition, the frequent turnover of company executives, the contradiction before and after the financing dividends, and the phenomenon of high proportion pledge of large shareholders seem to provide another evidence for the existence of financial doubts. (see La Natsu Bell's "makeup remover" in May 15, 2019, which is more abnormal than the financial data behind the counter trend losses).

The collapse of the first half of 2019 and the explosion of the pledge further revealed that La Natsu Bell was "seriously ill." Whether those phenomena that are not in line with business logic should be reinterpreted with the capital view? Before and after the listing, La Natsu Bell's dramatic changes in performance and strategic change, whether there is IPO before relying on offline expansion to achieve revenue growth, relying on postponing cost recognition and making low cost to optimize the profit statement?

Performance changed face did not make sufficient risk warning

On the evening of August 16th, La Natsu Bell announced that the company received the notice from the Shanghai Securities Regulatory Commission on the company's decision to issue warning letters on the same day.

Shanghai securities regulatory bureau pointed out that La Natsu Bell's January 31st earnings announcement revealed a substantial discrepancy between net profit and actual performance, and did not make sufficient risk hints to the performance from profit to loss. Information disclosure was inaccurate, incomplete and incomplete, violating the "information disclosure management measures of listed companies". According to the regulations, La Natsu Bell was given administrative supervision measures to issue warning letters.

Specifically, in January 31st, La Natsu Bell disclosed the 2018 annual performance pre cut notice. It is estimated that net profit in 2018 will be reduced by about 458 million 530 thousand yuan over the 2017 year, down by about 92% compared with the same period last year. In March 23rd, the company announced the 2018 annual performance correction and performance bulletin, which is expected to achieve a net profit of -15576 million in 2018. In March 29th, the company disclosed its annual report for 2018, with net profit of -15951 million in 2018.

Reporters query La Natsu Bell annual report 2017, its net profit of 499 million yuan. Therefore, the net profit of 2018 should be reduced to 40 million yuan if the 459 million year decrease mentioned in the 2018 annual performance reduction notice. But its actual performance is net profit loss, and the loss is nearly 160 million yuan.

According to La Natsu Bell's semi annual report issued in July 31st, the company's operating income in the first half of 2019 will drop by more than 20% over the same period. This is still expected. Surprisingly, La Natsu Bell's net profit attributable to shareholders of listed companies is estimated to be -4.4 billion yuan to -5.4 billion yuan, down 286.6% to 329% over the same period.

However, La Natsu Bell also made a profit of 9 million 750 thousand yuan in the first quarter. That is to say, La Natsu Bell lost about 500 million yuan in the two quarter.

Expansion: business promotion or greed drive?

In La Natsu Bell's "makeup remover": behind the loss of financial data, this paper analyzes the phenomenon of La Natsu Bell's performance after the listing, the unusual expansion of stores, the abnormal financial data and so on. However, the problems such as the runaway of company expenses, the change of inventory, and the reasonableness of a number of current accounts, such as receivable prepaid, have been asked by the Shanghai Stock Exchange.

In the fierce competition in the clothing industry, La Natsu Bell has ignored the continuous decline of single store sales for many years, still insists on the expansion of the rush, and the number of stores in the peak period is approaching 10000. After listing, La Natsu Bell's performance began to "change face", net profit continued to decline, the number of stores will be recovered. By the end of 2018, La Natsu Bell had a total of 9269 stores. However, as at the end of June 2019, the number of offline outlets in La Natsu Bell was reduced by more than 2400 compared with the end of 2018. It can be seen that La Natsu Bell's unthinkable expansion strategy before listing is more like using capital purchase channels to force its income growth.

The autumn of 2019 was La Natsu Bell's "eventful autumn": half yearly loss, the actual control of the explosion. La Natsu Bell announced in August 7th that the 99.81% of the shares held by the controlling shareholder of the company and the actual controller Xing Jiaxing accounted for the proportion of the shares held by the company, all of which constituted a breach of contract, or would affect the stability of the actual controller of the company.

Some investors questioned La Natsu Bell on the interactive platform recently. The net profit of the company's performance loss report is inconsistent with the actual profit and whether it intends to mislead investors. The reply received was that the company would fulfill its obligation of information disclosure in accordance with the regulations. In addition, some investors asked La Natsu Bell how to turn a profit in 2019 to ask deputy director. The reply was that according to the annual report of the company in 2018, the company will focus on improving the core brand competitiveness, adhere to the development strategy of multi brand differentiation, optimize the channel under the focus line, and adhere to various modes to expand the domestic market. Author: Zhang Xue