Pathfinder performance behind the Red: transformation Management fees receivable inventory surge

Last night, Pathfinder (300005.SZ) for the third quarter 2013 results of a beautiful report card: The first three quarter total revenue of 833 million yuan, up 33.35%, belong to the listed company shareholders net profit of 142 million yuan, Rose 74.15%. In the third quarter, net profit rose by 103.73%. In fact, the whole outdoor industry has been in a state of high speed in recent years. According to the survey of the Outdoor Products branch of China Textile Business Association (hereinafter referred to as "COCA"), the annual growth rate of China's outdoor products market has remained above 47% in recent years, much higher than the industry growth rate. Rapid growth has attracted a large number of brands to enter the market. Coca provided data show that 2012 China's annual brand number of outdoor supplies has reached 823, compared with 2011 year-on-year growth of 14.78%; at the same time, affected by the macroeconomic downturn and the continued low end consumption, the 2012 China outdoor Products market retail sales growth of 34.94% year-on-year, Growth is down 15.97% from a year earlier, showing a slowing trend. Affected by the above factors, Pathfinder began to seek transformation, their entry point is E-commerce. In the first half of 2013, Pathfinder E-commerce income of 71.22 million yuan, an increase of 205.62%. In this year's semi-annual report, Pathfinder proposed "to become an outdoor industry integrated service provider" strategic objectives, and said that the future will be from a single product provider to diversify, three-dimensional direction of development and transformation. To this end, Pathfinder's first step is to subscribe to the Singapore Online travel service company Asiatravel 40 million shares of new shares, hoping to use its background and technical support to pave the way for transformation. In addition, Pathfinder also invested 100 million yuan to set up a wholly-owned investment subsidiary, accelerate the integration of relevant outdoor industry resources, to the outdoor industry upstream and downstream, services and applications and other related areas of investment and mergers and acquisitions activities. However, it is noteworthy that the management costs of the transition have also increased dramatically. According to statistics, 2013 third quarter pathfinder sales, management costs increased by 35.57%, 21.01% respectively. In addition, changes in the business model led to a surge in accounts receivable, with other accounts receivable balances rising 321.81% per cent from the start of the year. Pathfinder's explanation for this is "as the company's business development, especially the rapid growth of e-commerce business, the business process of payment of margin, deposit, deposit and other business transactions caused by the increase." Inventories have also risen, with inventories rising 157.03% per cent in the current quarter, up from 420 million trillion yuan, to 32.18% of total assets. CIC Consultant Circulation Industry researcher Shen Zhengyuan told "the first financial daily", to be changed from brand to channel business and peaceful Taiwanese, means the development of thinking, the complete transformation of business model, "this is a long-term process, pathfinder to do a lot of upfront investment in preparation."