Seven Wolves 1.8 billion yuan opened shop was shouted stop raise money to "divert" financial management

Seven wolves actually raise funds for 1.766 billion yuan, 2013, raise funds to invest 93.5148 million yuan, the cumulative interest of 19.8139 million yuan, the balance of 1.27 billion yuan this newspaper reporter's monthly performance decline, closing 505, dividend reduction ... Seven wolves ran into a bottleneck in 2013. Sales difficulties, the loss of a large number of consumers directly led to the Seven Wolves in 2013 close 505, at the same time, seven wolves in June 2012 through the non-public offering of 7820 shares of nearly 1.8 billion yuan capital also because of the constant closing and suspended the expansion of the pace of opening shop. As of December 31, 2013, seven wolves in the 1.8 billion-yuan fund-raising project has been invested in the amount of 186 million yuan, all the use of fund-raising, the project completion level of 9%, raise capital investment progress of 10.53%. Whether the closing of the Seven Wolves will affect the opening of the shop, a company securities department people to the Securities daily Reporter said that if there is a suitable location, the company will still consider opening the shop. 1.8 billion Yuan open shop plan to suspend the project, seven Wolves have announced that "according to the company's strategic deployment, the plan for the next three years to open more than 1200 retail terminals (shops), and appropriately increase the proportion of their own shops, which requires investment of more than 2 billion yuan." And for the reason why the company took the way to raise funds to open the shop, seven Wolves have explained that "the company over the years the accumulation of surplus funds have been basically invested in the construction of the main business, as at September 30, 2011, the company's monetary balance level has been low, at the same time, Companies have gradually adopted short-term borrowing and other financing instruments to supplement the company's operating capital requirements. It was at the same time that the company's capital was tight, and seven Wolves ' fundraising was approved in May 2012. The announcement shows that the seven wolves to the specific investors in the form of Non-public offering shares of the renminbi common (a-share) 78.2 million shares, the total amount of fund-raising for 1.799 billion yuan, the actual amount of net fund-raising is 1.766 billion yuan. Seven Wolves plan to invest all of their investment in building "marketing network optimization projects." But the ideal is far from the reality. The negative effects of the early expansion of the seven wolves suddenly erupted in 2013, with the company closing 505 stores a year, and in this context, the company had to suspend the pace of opening the shop. And the company raised nearly 1.8 billion yuan in funds until the end of 2013 still have 1.27 billion yuan balance remained unchanged. The Seven Wolves decided to use some of the unused funds to raise money to invest in investment banking products, with an amount of up to 330 million yuan, in the case of large sums of money lying in a bank account. This shows that the seven Wolves of the project is not ideal, but also some investors doubt why the company in the market environment is not good conditions still to open shop. According to public data, seven wolves have grown significantly since 2011. Data show that 2010, 2011, 2012 and 2013, the company's inventory of 395 million yuan, 642 million yuan, 566 million yuan and 657 million yuan. This is also related to the company to open shop. 2010, the Seven wolves have a total of 3,525 terminal outlets, compared to 2009 net increase of 276; 2011, the company net increase in the terminal channel 451; 2012, in the market weakness, the company's Terminal channel still increased 31. The result of the Seven Wolves ' expansion was the closing of 505 stores in 2013. For the Seven wolves, some investors suspect that the company is not raising money to open stores, but to invest in real estate. Many shops are vacant or rented. In fact, investors ' suspicions are not unfounded. "To improve store use value and ROI," The Seven Wolves wrote in a fund-raising announcement. The company's fund-raising project plan mainly to purchase the first floor of the street quality shops, but the securities daily reporter found that seven wolves in the past years to raise funds used is not as advertised in the purchase of the first floor of the street quality shops, It is the existence that most of the fundraising is being used to buy the entire property, and thus leads to a partial housing vacancy. According to the Securities daily Reporter not fully statistics, as of September 30, 2011, in the Seven wolf purchase of 47 properties, 8 were not delivered, 2 vacant, 29 opened seven Wolf Stores, 8 for the Seven Wolf shop. Among them, in 29 open the address of seven wolf shops, the company is the whole purchase, so that the purchase of the area of many vacant phenomenon. From March 2012, seven Wolves disclosed "on the issue of non-public issues in 2011," the company has a total of 11 properties for the whole purchase, in these properties, in addition to the opening of some of the seven wolf shops, the more part of the external rental, and some are vacant. According to the "Securities daily" reporters do not fully statistics, in the Seven Wolves bought the property, 17 of the property is the company used to raise funds to purchase. Of these funds, 6 are purchased for the entire building. As in August 2009, the company used to raise funds to purchase a three-storey 145th East Dongfeng Road, Kunming, Yunnan. Among them, the downstairs opened seven Wolf stores, an area of 581.58 square meters, the original price of 39.6352 million yuan, at the same time, seven wolves are upstairs to buy 1101.4 square meters of area, the original price of 18.7654 million yuan. In the following two months, October 2009, seven wolves and the use of fund-raising to buy the city of Xian, Xi ' an, Shaanxi province, 111th Jiefang Road Real Estate is the whole purchase, which part of the downstairs opened seven wolf shops, an area of 440 square meters, The original value of 22.3843 million yuan; In addition, also bought upstairs 433.94 square meters, the original price of 5.519 million yuan. Thereafter, after a lapse of one months, the Seven Wolves again in November 2009 purchased at the same time in Hubei province Wuhan Qing Yang 10 Street 10 Building 1 to 2 floors and Hubei province Xiangfan Wanda Plaza, all for the whole purchase. Among them, the real estate in Wanda Plaza is only one place to open seven wolf stores, the other two are vacant, there is a not seven wolf shops. For the upstairs property, seven Wolves said "for other uses such as warehouses, offices or dormitories". Reporter in the announcement of seven wolves in the disclosurefound that the company used to raise money to buy the entire property at the earliest date began in 2007. November 2007, the company purchased at the same time in Nantong, Jiangsu Province (Baxian City, two) 2nd building, including the upstairs and downstairs. But this real estate and to be able to use up in time, to this, seven Wolves said, December 1, 2008 to December 30, 2009 opened seven Wolf Shop, after the developer three project construction postponed, the business circle has not yet formed, temporary external rental shops. It is noteworthy that the seven wolves in addition to the use of fund-raising for the whole House to buy property, but also several times to use their own funds to buy property in the business district, but these properties are not used to open seven wolf stores, but only for rent. Some analysts speculate that the company to buy these business district property rather than open stores, there is the nature of early investment in commercial real estate. Seven wolves, for example, were purchased in June 2007 from 95th to 99th, 106 rooms and 103 rooms in Simin District, Fujian Province, and seven wolves were not used to open stores. In this respect, the company explained that "the mature business circle, the commercial circle already exists in the seven wolf shops, temporarily unfit to open the same product standard seven Wolf shop." Imagine, if not investment in real estate, then, why seven wolves in Seven Wolf stores in the same business circle to buy two of real estate. In this respect, there is market analysis, seven wolves are open shop as an excuse to raise funds, while the field is for real estate investment financing.