500 million huge losses, major shareholders broke the market, the market value fell 80%, and the “Chinese version of ZARA” said La Chapelle is experiencing the dark moment since the listing.
Editor’s note: This article is from WeChat public account “Going to the net” (ID: China-Venture) , author Ma Mujie, editor Tao Huidong; authorized to publish. The original title “Chinese version of ZARA: performance explosion, boss burst, market value plummeted, Goldman Sachs 200 million”
In 2013, Goldman Sachs invested 300 million yuan in La Chapelle, and today the market value of this investment is only 94 million yuan. Even if La Chapelle’s past dividends were counted, Goldman Sachs still suffered nearly 200 million losses.
500 million huge losses, major shareholders broke the market, the market value fell 80%, and the “Chinese version of ZARA” said La Chapelle is experiencing the dark moment since the listing.
On the evening of August 6, 2019, La Chapelle issued a notice stating that Xing Jiaxing, the controlling shareholder and actual controller of the company, pledges to the company of Haitong Securities that the shares of the restricted shares are 141.6 million A shares (accounting for 25.85% of the total share capital). It has fallen below the minimum performance guarantee ratio, because it has not been repurchased in advance and has not adopted performance guarantee measures, which constitutes a breach of contract, that is, the so-called pledge.
Since November 2017, with the continuous decline of La Chapelle’s share price, Xing Jiaxing has pledgeed the company’s shares to Haitong Securities six times. Xing Jiaxing’s accumulated pledge company shares accounted for 99.81% of its directly held shares.
On July 30, La Chapelle handed in a worst-performing performance forecast since its listing. The performance forecast shows that as of the end of June 2019, the net profit attributable to shareholders of listed companies is -440 million yuan to -540 million yuan, a year-on-year decrease of 288.6% to 329%. At the same time, during the same period, its online and offline online stores decreased by more than 2,400 nets at the end of 2018. Under pressure, on August 6, La Chapelle’s share price fell below 5 yuan, and Xing Jiaxing finally broke the position.
La Chapelle was named “Zara of China” when he was at its peak, but now the market value is less than 3 billion yuan, less than a quarter of the time when the A-share was listed in 2017. After the listing, La Chapelle expanded aggressively by opening stores and buying brands. Nowadays, the building will be tilted, and the crazy sale model will be opened, trying to survive. But the future ahead of La Chapelle is not optimistic.
“The future will be delisted or reorganized, and there is no other path.” For the impact of the actual control of the hostages, the woven clothing brand management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong voted Zhongwang said.
worthIt is mentioned that Lachabel’s pre-IPO investors still have a good return due to the low valuation and safety margin at the time of entry. In the past ten years, La Chapelle’s institutional shareholder, Boxin, has merged with Shanghai. According to the current number of shares held by 180.415 million shares and 7.84 million shares, the stock market value can still reach 90 million yuan and 40 million yuan. In the financing in 2010, the investment amount of Boxin Phase I and Shanghai Ronggao was only 26 million yuan and 13 million yuan.
And La Chapelle’s other shareholder, Goldman Sachs, who was late in the game, was not so lucky. In 2013, Goldman Sachs invested 300 million yuan in La Chapelle, and now the market value of this investment is only 94 million yuan. Even if La Chapelle’s past dividends were counted, Goldman Sachs still suffered nearly 200 million losses.
The “A+H” listing of high-speed expansion can not stop
As the first clothing company listed in the “A+H” stock market in China, La Chapelle was once infinite.
In May 1988, Fujian businessman Xing Jiaxing founded “La Chapelle”, which focused on the concept of “fast fashion” and determined to make La Chapelle the “Chinese version of ZARA”.
“Developing companies can’t stop, the domestic consumer market is growing more than 20% every year. If you don’t open a new store, it means going backwards.” Xing Jiaxing, who was born in clothing sales, was founded at the beginning of La Chapelle. We have always adhered to the concept of “scale expansion” and focused on the “direct operation model”. Therefore, “new store expansion” and “full direct operation” have become the key words in the development of La Chapelle.
According to public data, the company had only 3,340 stores in early 2012. By the end of 2017, the number of stores in La Chapelle has expanded to 9,448. The near-crazy store opening strategy also significantly increased the company’s revenue in the short term. During the period, the company’s revenue increased from 2.91 billion yuan to nearly 9 billion yuan, and exceeded 10 billion yuan in 2018.
Before 2011, La Chapelle had only three women’s wear brands, and then gradually expanded the brand. Now La Chapelle’s sub-brands are nearly 20, covering women’s wear, men’s wear, children’s wear and so on. Such as La Chapelle, Puella, UlifeStyle, Candie’s, La Babité, Siastella, INMIX, Segafredo, Champait and so on.
In February 2015, after La Chapelle acquired the Taobao e-commerce brand Qigege for 200 million yuan, it began to invest in more than ten companies, such as strategic investment in high-end fashion lifestyle brand tannni, famous Italian coffee brand. Segafredo and the women’s underwear recommended shopping guide platform “Oxygen Bra”, also invested in the shared rental platform “Dora clothing dream”, Internet glasses brand INMIX, and private equity fund Lansheng investment.
In October 2014, La Chapelle went to Hong Kong