Self Redemption, Retreat In Order To Advance! Can BELLE Dress Reborn In Nirvana?

It is understood that in July 28, 2017,

International Holdings Limited (BELLE) quietly announced on its official website that the privatization proposal put forward by BELLE in the form of agreement was formally launched in July 25, 2017 (Cayman Islands time).

Public opinion is in an uproar, and the voice of BELLE has been heard.

Is BELLE's delisting a failure?

Market failure

Admittedly, BELLE's performance has been poor in recent years. Even though BELLE's board accepted the proposal of privatization, that alone can not prove BELLE's decline.

1. real operation of BELLE

Continuous decline in sales and making ends meet are important indicators for judging a company's poor management.

Obviously, neither is BELLE.

In recent years,

Market demand has been sluggish, coupled with the impact of the electricity supplier, as a traditional shoe and clothing enterprise BELLE can escape if it is a strange thing.

The main industry has its own brand footwear business sales slump dragged down total sales growth sluggish, profits plunged sharply.

Under such circumstances, closing sales outlets to reduce losses is a normal business activity.

It is worth noting that BELLE has relied on sports apparel business to achieve sustained growth in sales revenue since its listing in Hongkong in 2007.

Asset liability ratio is only 16.13%, BELLE holding 3 billion 500 million Hong Kong dollars in cash, in any case, it is difficult to associate with the word "decline".

2. the top priority of the explosion

Although the retail industry is in a slump, BELLE's performance is not enough, but its competitors are not eye-catching.

Daphne, once famous throughout the country, has been declining in sales for many years and is in deep mire of loss.

Other well-known shoe companies, such as Saturday, AOKANG and red dragonfly, are also struggling in deep water, though they are not like them.

That's a loss, but sales pressure is huge.

After all, BELLE is several times as good as its rivals in terms of sales scale and profitability.

If the traditional shoes and clothing enterprises are doomed to die, will BELLE still be able to support for many years?

3. the allegations of sale are unconvincing.

It was criticized that BELLE had been sold off because BELLE had a market value of HK $150 billion in 2013, but it was sold at HK $67 billion, less than HK $53 billion 135 million on the first day of listing, and shrunk by nearly HK $100 billion.

In fact, the comparison between the highest market value and the current selling price is not scientific.

The market price per share is a psychological price given by investors to the company's future expectations.

When investors are not optimistic about the future of the company, market capitalization will naturally shrink.

BELLE fell to HK $4.23 per share at the end of 2016. Although it picked up slightly after 2017, it lingered around HK $5 before the suspension of trading in April 18, 2017.

Therefore, the privatization price offered by the buyer is no more than 6.3 Hong Kong dollars per share.

In addition, according to the 2016 annual report, the total assets of BELLE were 31 billion 55 million yuan, less than HK $53 billion 135 million (HK $1 =0.8501 yuan).

If the liabilities such as trade accounts and short-term loans are eliminated, BELLE's available assets will be lower.

All in all, BELLE's HK $53 billion 135 million paction price is not cheap.

Self redemption is helpless.

Since BELLE is not yet on the verge of bankruptcy, why is it willing to accept privatization to hand over the "child" that is hard to raise to others?

One

The doom of trend

Fast fashion has become a major trend in the shoe and clothing market.

BELLE's CEO Sheng Bai Jiao has long been aware of changes in consumer behavior. Unfortunately, he only sees the appearance and never understands fast fashion. What kind of products does the company need to provide?

Therefore, BELLE's first business platform "Tao Xiu net" (later renamed "excellent purchase network") has achieved good results in the early stage, but it is hard to escape the fate of failure.

As one of BELLE's sales channels, the excellent purchase network has no ability to change the drawbacks of BELLE's own products, such as lack of personalized design and long production cycle.

2., the main business has deteriorated the overall profit.

The development of its own footwear brand has always been the focus of BELLE's work. Only in this way, BELLE can not be controlled by others and its profits are considerable.

After its listing in 2007, it has its own

Revenue has accounted for more than 50% of the company's revenue, but it changed after 2014. By 2016, its own footwear brand accounted for only 40% of the company's revenue, dragging down the overall profitability.

In response to investor doubt, BELLE can only hope to increase its brand strength when its private brand footwear products have no improvement in revenue growth.

While reducing the number of self brand footwear retail outlets, they are also increasing sports and clothing retail outlets.

The non main industry has undertaken the task of making up for the loss and growth of the main industry, which is obviously not what BELLE expected.

3. decision makers have more than enough minds.

Time and tide wait for no man, and the hero is at the end of the night. The founder of BELLE group, born in 1935, has already entered the age of Deng Yao, and has gradually retired to the background.

At the performance briefing, Sheng Bai Jiao admitted that "the 65 year old can not use the computer himself". No wonder he had a sense of withdrawal. He acquiesced in the "ability and values to make great contributions to the company".

Reinvigorated the wind

BELLE privatization has been settled, and its founder Deng Yao and CEO Sheng Bai pepper have also left the decision-making level.

The fact that BELLE, which is being handed over to an investment institution, can rejuvenate, is in fact a great probability.

1. privatization is a prelude to pformation.

Deng Yao and Sheng Bai pepper accepted the offer offered by BELLE and BELLE, which must have been carefully considered.

To make the company Evergreen, it is the right time to make fundamental changes.

Based on the long-term commitment and input of the joint offeror, we believe that the new arrangement will enable the joint offer parties to take advantage of the new generation of management resources and lead the group to develop continuously and healthfully.

In order to ensure the smooth implementation of the privatization, Sheng Bai pepper has publicly promised to "work for another two or three years, hoping to play a connecting role in helping the company pition smoothly."

After privatization, 30.5% of the shares of Yu Wu and the leading management consortium will also escort the smooth pition of BELLE's privatization.

You should know that you have rich experience in the shoes and clothing market, and are all veterans of the company. They know a lot about the company.

The relationship between Sheng and 100 peppers is my nephew. There must be too many obstacles to privatization.

2. "White Knight" is worth looking forward to.

The high leverage capital, which controls corporate control with a 57.6% stake, is one of the largest investment funds in Asia's asset management. It has invested in us, Jingdong, motorcycle and skyline robots.

Through its investment projects, we can see that the high leverage capital is concerned about the future value of the target, and will not ignore long-term gains because of immediate interests.

For the new consumption mode, Zhang Lei, founder of high alpine capital, also made clear that "helping BELLE international to carry out technological pformation in the challenging retail market environment, thereby regaining long-term market competitiveness."

In addition, 11.9% of Ding Hui investment is one of the largest alternative asset management institutions in China. Its investment scope is very broad, including Mengniu, Mei, Qihoo 360 and Chenguang stationery.

At the same time, Ding Hui investment is also a focus on long-term performance.

The core idea of a company is to create value for investors and enterprises.

The rich experience of the two "White Knight" capital in the field of high technology will provide experience support for the exploration of BELLE's new mode.

The 3. line is the key to the rise.

Although BELLE has fallen into a bottleneck in the new consumption trend due to its failure to make a smooth pition, its foundation still exists.

One of the most coveted is retail outlets all over the country.

In the era of experience economy, face-to-face communication can better understand the needs of consumers. If we make good use of the offline channels of BELLE, the threat of electric business is not enough.

In order to survive, BELLE has chosen a path of radical change from top to bottom, completely changing the original business ideas and business models.

We have not seen the fruits of BELLE's privatization now, and we can not decide whether this is a correct way.

But with regard to BELLE's resolute refrain, we have reason to believe that it will be able to regenerate Phoenix.

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