The famous apparel giant Mebane Clothing (1.37+1.48%, SZ) (002269, SZ) has not developed as well as it would have liked in recent years, having taken the advertising slogan “Off the beaten track, Metersbonwe” by storm and hired Jay Chou, a popular figure in the north and south of the country, as its spokesman.
Perhaps in order to alleviate the difficult situation of heavy share price decline and huge performance loss, the company had to choose the asset disposal move.
According to the evening announcement of March 9, the company intends to sell its Shanghai Mode Gong Industrial Co. Through this move, the listed company is expected to “bleed back” hundreds of millions of dollars. The reporter noted that the pavilion where the “Metersbonwe Fashion Museum” has been opened for 15 years is also in the asset package. The receiver is the neighbors of Mebane Apparel, Bairun (87.99+4.30%, SZ) (002568, SZ), the company said it intends to use the subject assets for the research, tasting and display of low-alcoholic drinks and spirits Culture.
Meibang Apparel intends to dispose of assets to “return blood”
According to the announcement of Meibang Apparel, the board of directors of the company considered and passed the “Proposal on the Sale of Equity Assets”, and on the same day the company signed the “Equity Transfer Agreement” together with Shanghai Bacchus Wine Co. According to the above-mentioned agreement, the listed company and its holding subsidiary, Bangbao Information, intend to sell 100% of the equity interests held by Mo Gong Industry to Bax Wine.
As of February 28, the net assets of Die Gong Industry were RMB 180 million and the appraised value was RMB 451 million, representing an appreciation rate of 150.52%, and the transaction price of 100% equity interest in the company was determined to be RMB 448 million.
In the view of Meibang Apparel, the transaction is beneficial to the company’s revitalization of existing assets and is in line with the company’s strategic planning. According to the preliminary calculation of the company’s finance department, the transaction will result in a gain of approximately 250 million yuan from asset disposal (before taxes and expenses), and the proceeds will be used to replenish the company’s working capital, which the company believes will have a positive impact on its financial position and operating results.
Indeed, for the current Meibang Apparel, the recovery of more than 400 million yuan in huge sums is significant. As of September 30 last year, the company had only RMB101 million in monetary funds under its consolidated balance sheet.
On March 1, Meibang Apparel announced that after a comprehensive inventory and asset impairment test of assets with possible signs of impairment at the end of 2020, including inventory, accounts receivable, other receivables, non-current assets due within one year, long-term receivables, investment properties, etc., the company and its subsidiaries proposed to make a provision of RMB 366 million for impairment of various assets in 2020. This move will reduce the company’s net profit attributable to owners of the parent company by RMB 366 million in 2020.
The huge provision is a microcosm of the sluggish performance of American Apparel. According to the company’s performance forecast released on Oct. 30, 2020, it expects a full-year loss of 580 million yuan to 820 million yuan. in fiscal 2019, Mebane Clothing reported a net profit loss of 825 million yuan. In other words, the company’s performance will be a huge loss for two consecutive years.
In August 2008, Meibang Apparel successfully landed on the Shenzhen Stock Exchange’s small and medium-sized board, becoming a giant in the A-share apparel industry. 2011, Meibang Apparel’s revenue reached 9.95 billion yuan, with more than 4,000 stores, very scenic. However, the peak was not maintained, and in 2012, its revenue was 9.51 billion yuan, down slightly year-on-year, but net profit dropped 29.55%. In 2015 and 2017, the company’s net profit had a large loss. After experiencing a large loss in 2019 and the probability of 2020, American Apparel is reduced to the situation of “bleeding back” by asset disposal.
The company’s share price fell by 88.99% from August 14, 2015 to March 9, 2021. On February 4 this year, the company’s share price once fell to 1.12 yuan/share, approaching the 1 yuan/share mark. In recent times, the share price of American Apparel has rebounded. As of the close of business on March 9, the company’s share price closed at 1.35 yuan/share, with a total market value of less than 3.4 billion yuan, a serious shrinkage from the peak of nearly 40 billion yuan.
Representative pavilion may become a wine industry exhibition hall
The main asset of the model common industry is the property located at No. 799 Kangqiao East Road, Pudong New Area, Shanghai, with a total floor area of 38,300 square meters.
The reporter noted that the property has a total of 5 blocks, of which block number 2 is a museum and design center, the museum is “Metersbonwe Clothing Museum”.
The “Metersbonwe Clothing Museum” can be considered as one of the iconic places of Meibang Clothing. According to media reports, Zhou Chengjian, the actual controller of Meibang Clothing, suddenly developed a sense of responsibility and mission to protect and rescue national folk culture when he attended an academic forum in a foreign country. In January 2004, a group was established to prepare for the establishment of the “Metersbonwe Costume Museum”. Through inspection and collection in various places, the museum collected a large number of folk costume collections.
According to the official website of Meibang Clothing, the “Metersbonwe Clothing Museum”, with a pavilion area of more than 2,000 square meters, was opened to the public in December 2005. The company says it is a display center for costume culture and a resource center for costume research professionals.
As of now, the “Metersbonwe Fashion Museum” will face a move if Meibang Apparel intends to continue its operation. According to the Equity Transfer Agreement, the listed company will have to vacate the subject assets within May 31 and remove the items and equipment belonging to it.
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