Sen Horse shares main expansion blocked cash flow huge shrinkage

Although the success of the Hollywood blockbuster "Iron Man 2" in the female second "Black Widow" Johansson put on their own brand of clothing, but this gimmick for the Senma in the domestic one or two-line city expansion, it does not seem to have so much effect.　　Zhejiang Sen MA Garments Co., Ltd. (hereinafter referred to as "the Horse Shares") will be held on January 24, seeking an IPO in Shenzhen, but analysts believe that in the fierce market competition, the production of youth-oriented leisure apparel and children's clothing business, the company is now facing the risk of expansion.　　The prospectus shows that during the reporting period (2010 1-June, 2009, 2008, 2007), the net cash flow generated by the business activities of the company is 71.0867 million yuan, 1,038,121,500 yuan, 394.1533 million yuan and 41.071 million yuan respectively. Comparing 2009 and the first half of 2010, it was found that the net cash flow from its operations had a huge shrinkage.　　The company explained that this was mainly seasonal and that companies were targeting supplier capacity to control procurement costs, raising the proportion of prepaid accounts. Prospectus disclosed that during the reporting period, the number of national stores in the forest horse shares reached 5,809, 5,159, 4,060, 2,903, the expansion of the speed can be seen. However, the data show that during the reporting period, the children's wear business, which is the support of its main business, lost all four subsidiaries in Shanghai, Beijing, Hubei and Tianjin. 2010 1-June, the net profits of the 4 subsidiaries were-1.8258 million, 961,000, 859,800 and 787900.　　In 2009, the figure was $2.1119 million, 1.5324 million, 2.456 million and 2.2886 million. Besides, the expansion of the other big support of the main business is not so smooth in Beijing, Tianjin, Chongqing and Shenyang. Data show that in the first half of 2010, Beijing Sen Ma, Tianjin Sen Ma, Chongqing Sen Ma and Shenyang Sen Horse Net profit is-6.2869 million yuan, 1.1884 million yuan, 183,000 yuan and 1.333 million yuan, and in 2009 all year round, this data is 317,200 yuan, 2.8066 million yuan respectively , 855,200 Yuan and 3.3768 million yuan.　　By contrast, Shanghai Sen Ma and Hangzhou Sen Horse in the first half of 2010, the net profit reached 43.5763 million yuan and 4.1316 million yuan respectively. In other words, in addition to the Shanghai Sen Ma and Hangzhou Sen Ma, the other 4 Sen Horse Apparel subsidiary in the first half of 2010 net profit of 3.3476 million yuan, children's clothing business four subsidiaries of the net profit is 4.4345 million yuan.　　In terms of total profits and growth, the two major businesses of the company are not so smooth in the expansion of the country's key cities. Data show that in 2009 and the first half of 2010, Sen Horse Shares ofOperating income of 4.25 billion yuan and 2.202 billion yuan respectively, the total profit is 915 million yuan and 456 million yuan, even taking into account the seasonal factors, the growth rate is not so satisfactory. Analysts said that from the current pattern of industry competition, Sen-Ma with domestic casual wear brands such as the United States, to pure, jeanswest, Baleno, and so on, in the target group, price and other aspects of positioning there is a large overlap, the competition has been very intense. Plus Zara, h&m, UNIQLO, ESPRIT, Jack&jones,　　LEVI ' s and other international casual wear brands are entering the Chinese market and a large number of domestic apparel brand manufacturers have introduced casual apparel products, the current leisure apparel in the one or two-line city competition has entered a white-hot stage. And in the children's market, in the high-end brand, international children's wear brand has occupied a considerable market share, the domestic children's clothing brands mainly in the middle and low-end market to compete.　　Children's wear industry market concentration is low, single brand market share is not high. Perhaps that is why the company is looking for IPO financing. Pre-disclosure materials show that, in the fund-raising investment, the horse shares plan will be about 90% of them to the construction of the marketing network. The company also said it would start the project starting with self-financing and will raise funds to replace the funds in advance.