Man Caron Three Degree Impact IPO: Performance Is Not As Good As 5 Years Ago.

At the beginning of July, the IPO Limited by Share Ltd prospectus was published by the man Caron jewelry Limited by Share Ltd. It is intended to register the gem for 358 million yuan, mainly for marketing network expansion.

Mankaron is in the core market of Zhejiang, and is in the bottleneck of growth. Despite the breakthrough in the foreign market and the electricity supplier channel in Zhejiang Province, it is hard to make profits, resulting in a decline in profitability of the company.

It is worth mentioning that this is the third time that Mann has struck IPO. In 2018, it was abandoned by the capital of Tian chart, and the gambling agreement is still in the body. Can the man suffer from the pain of capital?

　　 Performance is not as good as 5 years ago.

The main business of man Caron is jewelry design, sales and brand management. The main markets are in Hangzhou and Ningbo, Zhejiang.

The main brand of the company is MCLON, ancient and modern legend. Its products include "three love and one drill": AI Shang Jin (Su Jin), AI Shang Xuan (kking + small grain drill), AI Shang CAI (K + GEM) and diamond ornaments.

By the end of 2018, the company had a total of 153 stores, including 27 outlets, 59 counters and 67 franchisees.

In 2016 -2018, the operating income of man Caron was 750 million yuan, 837 million yuan and 920 million yuan respectively, and the net profit attributable to them was 55 million 783 thousand and 400 yuan, 43 million 818 thousand and 400 yuan and 55 million 39 thousand and 100 yuan respectively.

During the reporting period, the company's net profit declined and profitability declined more seriously. In 2016 -2018, the company's net interest rates were 7.44%, 5.24% and 5.98% respectively.

In fact, in the longer term, the company's performance decline and abnormal fluctuations are "commonplace".

Because the business of man Caron is mainly prime gold, the proportion in the reporting period has been around 6, so the gross profit margin of the company is relatively low and showing a downward trend: in 2016 -2018, the gross profit margin was 26.62%, 22.87% and 24.57% respectively.

In addition, the cost rate of the company is relatively high. In 2016 -2018, the sales expense rate of the company was 11.70%, 10.89% and 11.37%, and the management fee rate was 4.05%, 3.94% and 3.81%, which were much higher than the average level of the industry.

The sales cost rate is related to the business mode, but most of the stores are special counters and franchised stores, and the sales cost rate should be lower, Mr. Mann said.

As for the high rate of management fees, the company explained that "the overall sales scale of the company is small, which can not reflect the scale effect, and the management cost rate of the company is higher than that of the same industry."

Regional market is in a bottleneck

As a regional jewellery brand, the main market of man Caron is concentrated in Hangzhou and Ningbo, Zhejiang.

In 2016 -2018, the income of the company in Hangzhou Ningbo market was 511 million yuan, 523 million yuan and 550 million yuan respectively, accounting for 68.13%, 62.49% and 59.78% of the total income respectively.

In recent years, the company's revenue growth in Zhejiang has slowed down. The combined growth rates in 2017 and 2018 were 9.70% and 3.70% respectively.

In recent years, the company's revenue growth is mainly contributed by Zhejiang's foreign market and e-commerce channel. From 2016 to 2018, the operating income outside Zhejiang increased from 2 million 95 thousand and 900 yuan to 41 million 259 thousand and 900 yuan, and the income of the electricity supplier channel increased from 16 million 920 thousand and 400 yuan to 49 million 558 thousand and 800 yuan.

Since 2010, the company has expanded the three largest markets in Shanghai, Jiangsu and Hubei outside the Zhejiang market. However, the subsidiary companies responsible for these three markets are still losing money.

Although the business revenue of the electricity supplier can reach 50 million yuan a year, its gross profit margin has dropped to 5.01% from the 13.05% explosion in 2016.

The stock business is in the bottleneck of growth, and the incremental business is not profitable. Therefore, the company's operating income has increased during the reporting period, but net profit has declined.

At the same time, the company's inventory is high. At the end of 2016, 2017 and the end of 2018, the book value of stock was 302 million yuan, 331 million yuan and 352 million yuan respectively, accounting for 69.05%, 66.59% and 66.73% of total assets respectively.

Moreover, in the company's 3 multi billion stock, inventory goods exceed 300 million yuan, accounting for 95%, raw materials only millions of yuan.

Therefore, this is not the traditional material store of jewelry companies. The main reason is that the competitiveness of the company's products is declining.

　　 The divestment is still in the gambling agreement.

Mankaron's actual controller, chairman and general manager, Sun Songhe, worked in the department store of Xiaoshan District Commercial Bureau in Hangzhou in early years, and later founded the Xiaoshan Bandung Jewelry City, the Bandung man Caron jewelry.

At the end of 2009, Sun Songhe was the main sponsor of the establishment of man Caron. In the following years, he injected his jewelry business and assets, including inventory, equipment, office property and so on into the man Caron, forming the current main body to be listed.

Before listing, Sun Songhe shared 76.93% of the company's shares.

It is worth mentioning that this is not the first time that IPO has been attacked by man.

In June 2015 and April 2017, man Caron submitted the IPO application to the securities and Futures Commission two times, listing on the Shanghai Stock Exchange, sponsoring Securities for people's livelihood securities, and in July 2019, man Caron came back again, the sponsor broker was replaced by Zhejiang securities, and the SSE was the gem of the Shenzhen Stock Exchange.

At that time, because of the decline in the performance of Mann Caron, it was widely questioned: the net profit in 2014 was cut off, and the operating income in 2014 -2016 was three. In May 2017, man Caron was terminated by the SFC directly.

In recent years, although the performance of man Caron has picked up slightly, it is far from the state of 5 years ago. Moreover, the main reason for the decline in operating income and net profit is due to large-scale opening of franchised stores.

Under this premise, IPO is probably related to the bet between the real controller and the investors.

When the company introduced overseas investors such as Xinhai venture, Zhili Haili and Tian Tuo capital in 2012, the gambling agreement was listed before 2015, otherwise shareholders could ask the real controller to buy back the shares. In 2015 and 2017, after the two IPO crash, in April 2019, the actual controller and the investor signed a supplementary agreement, and gambling remained as high as Damour's sword.

In fact, man Caron's gambling agreement has been launched.

In November 2018, after the transfer of all the shares held by Shenzhen's sky chart and Tianjin sky chart, its elected director, Pan Pan, resigned as director.

The capital of Tian chart focuses on the field of consumption. Investment projects include Zhou Heiya, Na Xue's tea, red book, mogujie.com and so on.

In addition, the company's decline in performance and market disruption also caused high-level turbulence.

At the end of 2017 and early 2018, Hu Xiaoqun, director of the company and director of finance, Liu Chunyan, director of the board and Secretary of the board of directors resigned. For more than half a year, Sun Songhe, chairman and general manager, had to act as secretary of the board of directors. Author: Chen Xiaojing