Lining Or Loss 550 Million Reform Two Years Of Performance No Improvement

< p > it is reported that the lost mainland a href= "http:// www.sjfzxm.com/news/index_f.asp" > sports brand < /a > the throne of a href= http:// www.sjfzxm.com/news/index_f.asp www.sjfzxm.com/news/index_f.asp > Lining < /a >, the business situation is muddy.

The company issued a profit warning after yesterday's market closes, and expected a substantial loss of 550 million yuan in the first half of this year, leaving the market in a big surprise.

The company explained that losses were related to expanding the direct selling network, clearing the stock of channels, and increasing bad debts.

Since the beginning of this year, the mainland's retail consumption market is quiet, and the survival environment of local sporting goods brands is difficult.

Lining fell 1.08% yesterday to close at HK $5.47.

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< p > < strong > startup pformation sales net loss 300 million < /strong > < /p >

< p > according to the announcement of the HKEx, Lining's loss in the first half of this year is expected to expand to 550 million yuan from 184 million yuan a year earlier, with a net loss of 300 million yuan.

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< p > the company explained that since the start of the pformation plan in July 2012, the initial investment includes expanding the direct selling network and the input of marketing resources, which is one of the reasons leading to losses. The second reason is that after cleaning up the inventory period of the distributors, the company is still reducing the wholesale and marketing of new products; however, the company emphasizes that the above measures can bring about sustainable development.

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< p > < strong > Lining: the new strategy has achieved results < /strong > < /p >

< p > drag Lining's profits another "mess" is a huge provision.

The company expects that in addition to the net loss of the above 300 million yuan, the provision for bad debts in the first half of this year is as high as 100 million yuan. The company explained that < a href= "http:// www.sjfzxm.com/news/index_c.asp" > distribution channel < /a > is still in the process of deleveraging, but its wholesale new product still needs to grow. In addition, during the period, the company consumes 200 million yuan in closing one-time spending on flagship stores and investment, but the total of two yuan is 300 million yuan, which is a one-time loss.

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< p > Lining continued to imply that the pain was "painful" during the reform process. He stressed that the above measures helped to release the profit potential and reduce the financial risk. Executive chairman Lining said that the company was pforming from traditional wholesale to retail oriented, and the new strategy has achieved new results in the new products. In the first half of the year, the new product retail performance was better, believing that the direct selling platform under investment would contribute to the revenue.

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< p >, however, the securities companies are more "bad mouthing" attitude towards the company. Credit Suisse believes that Lining's pformation plan has executive risks and brand positioning needs to be considered.

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< p > < strong > analyst: the trend of the second half is positive < /strong > < /p >.

< p > at the beginning of this month, the foreign capital bank declined the Lining rating by worrying about the performance of Lining in the first half of the year. After that, Lining's share price fell all the way, and this month's total decline was more than 10%.

Foreign retail analysts believe that the market has been prepared for Lining's performance and investors are still cautious. Judging from yesterday's announcement, the pformation of Lining is still smooth. Guidelines for the second half of the year are positive. Stock prices are expected to remain tight in the short term, but the possibility of a big crash is unlikely.

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