Smith Barney Apparel under Heavy Pressure

On the evening of February 28, Smith Barney announced that it plans to withdraw 366 million yuan of asset impairment reserves for 2020, which will reduce the net profit attributable to the parent company in 2020 by 366 million yuan.

While assets are impaired, the performance of Smith Barney is not optimistic. The former leading companies are now in a state of wind and rain. Many netizens said that Metersbonwe is a youthful memory of many people.

Smith Barney Apparel under Heavy Pressure

Asset impairment exceeds 300 million yuan

The total market value has exceeded 35 billion

On the evening of the 28th, Smith Barney Apparel issued an announcement that after the company and its subsidiaries, the company and its subsidiaries have identified assets that may have signs of impairment at the end of 2020, including inventory, accounts receivable, other receivables, non-current assets due within one year, After a comprehensive inventory of long-term receivables, investment real estate, etc., and asset impairment tests, it is planned to withdraw 366 million yuan of asset impairment reserves for 2020.

Meibang Apparel stated that the scope of this provision for asset impairment is mainly accounts receivable, inventory and investment real estate. A total of RMB 365.52 million has been provided for impairment of various assets. After considering the impact of income tax, the net profit attributable to owners of the parent company in 2020 will be reduced by RMB 365.52 million, and the equity attributable to owners of the parent company at the end of 2020 will be reduced correspondingly by RMB 365.52 million.

The asset impairment this time is another big punch for Smith Barney.

According to data, Shanghai Metersbonwe Apparel Co., Ltd. was founded in 1995 and listed on the Shenzhen Stock Exchange in August 2008. The stock price of Smith Barney apparel reached a peak of RMB 14.83 per share in 2010, with a total market value of more than 35 billion yuan. Since then, it has continued to decline. As of the midday close on March 1, the stock price of Smith Barney apparel was reported at 1.34 yuan, and the latest total market value was 3.367 billion yuan.

The performance reached its peak in 2011. At that time, the total operating income of Smith Barney apparel reached 9.945 billion yuan, and the net profit attributable to the mother was as high as 1.206 billion yuan. As of the end of 2012, Smith Barney had a total of 5,220 directly-operated stores and franchised stores across the country.

Continuous losses in performance

Stores closed for years

In fact, the performance of Smith Barney Apparel is also not optimistic. According to the financial report of Smith Barney Apparel for the third quarter of 2020, as of September 30, 2020, the company has a net profit loss of 706 million yuan, a year-on-year decrease of 196.78%.

From 2015 to 2019, the company’s net profit was -432 million, 36 million, -305 million, 40 million and -825 million, respectively.

 

On the other hand, according to the Smith Barney apparel financial report, the number of stores in 2013 became nearly 5,000, dropped to more than 4,000 in 2014, and more than 3,700 in 2015. In the first half of 2020, Smith Barney closed 504 stores and opened 105 new stores at the same time.

It is worth mentioning that at the end of January 2021, Huafu Investment, the controlling shareholder of Smith Barney Apparel, transferred 2.16% of the company’s shares to Lai Xingyu through an agreement transfer in order to repay part of its pledged debts in Zhongtai Securities Co., Ltd. and reduce the risk of stock pledges. .

On the evening of February 4, Smith Barney made another announcement stating that Huafu Investment had released approximately 237 million shares of the company originally pledged to Zhongtai Securities Co., Ltd. from the pledge.

In the same February, Metersbonwe closed its largest store in Hangzhou and issued an announcement stating that due to the shift of the business district and considering the input-output ratio, the company took the market-oriented competitiveness strategy as the main line and made more positive efforts to some stores. Proactive adjustments will further accelerate the closure of all continuously loss-making stores to ensure a proactive strategy based on profitable business operations, and subsequent adjustments may be made to unprofitable stores.

©Spark Global Limited Financial information & The content of the website comes from the Internet, and any infringement links will be deleted.