Meibang Apparel (002269) announced on the evening of December 29, 2023 that in order to expand business development across the region and prepare liquidity for supply chain investment, the company will continue to reduce liabilities by revitalizing assets. After considering transaction conditions and other factors, the company plans to use cash The transaction method was to sell the company’s shop at No. 48 Kangjian Middle Road, Xinzhou District, Shangrao City, Jiangxi Province to Ningbo Youngor Clothing Co., Ltd. The transaction price was finally determined to be 60 million yuan after negotiation between the two parties.
The company held the seventh meeting of the sixth board of directors on December 28, 2023, and reviewed and approved the “Proposal on the Company’s Sale of Shangrao Kangjian Middle Road Property”. This transaction still needs to be submitted to the shareholders’ meeting for review.
This is not the first time that Meibang Apparel has “sold a house”. According to the review, as early as October and December 2022, Meibang Clothing announced that it would sell its stores in Wuhan and Guiyang for 190 million yuan and 130 million yuan respectively; in June 2023, Meibang Clothing announced that it would sell some stores in Shenyang to 300 million yuan for sale; in early December 2023, Meibang Clothing once again announced the transfer of the store located in the Chunxi Road business district of Chengdu, and the final transaction price was 680 million yuan.
On the evening of December 26, 2023, Meibang Apparel announced that it planned to sell the company’s store at Wanda Xintiandi 1-10101, East Street, Beilin District, Xi’an City, Shaanxi Province, to Youngor in a cash transaction. The transaction was finalized after negotiation between the two parties. The price is 40 million yuan.
In the past year, Meibang Apparel has sold off its assets six times, obtaining a total of nearly 1.4 billion yuan in cash, and the real estate buyers are all Youngor. The founder of Youngor is Li Rucheng, known as the “Warren Buffett of the apparel industry”. He has been friends with Zhou Chengjian, the actual controller of Meibang Apparel, for many years.
Nowadays, selling houses has become one of the ways for Meibang Clothing to “recover blood”. An industry insider analyzed that from the third quarter report of Meibang Apparel, the net cash flow obtained by the company through operations is low, and its assets account for a large proportion of inventory and fixed assets. It is believed that the sale of stores is to save itself.
“Fast fashion companies are facing huge challenges. This challenge is that their capabilities focus on ‘channels’ rather than brands, and product iteration speed may not be as fast as online e-commerce. Therefore, once the current stores cannot generate the expected positive benefits, It will become a burden on the enterprise. Leasing will generate rent, and if the self-owned fixed assets are not profitable, selling them for cash is also a way.” She further analyzed.
In addition, on December 26, Meibang Apparel and its chairman received a warning letter due to letter disclosure issues.
The company said that from May 2018 to December 2019, Meibang Apparel provided financial assistance to new franchisees with greater financial pressure to pay for their store rent and decoration investment. The maximum daily balance was 228 million yuan, accounting for 10% of the total. At that time, it was 8.14% of the company’s latest audited net assets. As of September 30, 2023, the uncollected balance was 43.9985 million yuan. The company’s above-mentioned provision of financial assistance to external parties did not go through the review process and be disclosed in a timely manner. It was not disclosed in the form of a temporary announcement until July 4, 2023.
The above-mentioned behavior of Meibang Apparel violated relevant regulations, and the Shanghai Securities Regulatory Bureau took administrative supervision measures against Meibang Apparel by issuing a warning letter. Hu Jiajia has been the chairman and president of Meibang Apparel since November 30, 2016, and is primarily responsible for the above-mentioned matters of the company. According to relevant regulations, the Shanghai Securities Regulatory Bureau took administrative supervision measures against Hu Jiajia by issuing a warning letter.
In addition to selling houses, the company’s controlling shareholders are also selling shares. On December 11, 2023, the controlling shareholder of Meibang Apparel plans to sell 5.97% of its shares for 243 million yuan.
On that day, the company stated that the controlling shareholder Shanghai Huafu Investment Co., Ltd. signed a “Share Transfer Agreement” with Shenzhen Gaoshen Asset Management Co., Ltd. on November 8, 2023. It is planned to transfer its 150,000,000 shares of the company (accounting for 5.97% of the company’s total share capital) to Gaoshen Assets through an agreement transfer at a price of 1.62 yuan/share.
Meibang Apparel said that the single offline consumption scenario in the past is no longer suitable for today’s market, and the operating difficulties caused by the past willfulness need to be improved through step-by-step changes. At present, Meibang Apparel has comprehensively promoted the global consumption scenario strategy of content e-commerce, search e-commerce, and offline channels, and created good products around new consumption scenarios.
In response to subsequent measures to alleviate performance pressure, on December 27, a person related to Metersbonwe said that Metersbonwe will use the funds from the sale of store properties to cash flow reserves for supply chain investment and production corresponding to the expansion of global business development. The liquidity funds invested are prepared to focus on broader development opportunities, and at the same time, we continue to reduce liabilities through the realization of assets.
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