News Birds Spend About 120 Million To Help Franchisees Expand Their Stores

These funds will be used to subsidize franchisees to purchase shops that are specially designed for long-term wedding bird brands, or to provide working capital support, so that franchisees can accelerate their development and the use period of funds will not exceed 6 years.

Each financial subsidy will be secured by a company purchased by a company sponsored by a franchisee, or by the ownership of the house owned by the franchisee, which is not less than the amount of financial subsidy, or by the third party authorized by the company.

All franchisees who receive funding must undergo strict qualification audit, which is in line with the company's internal credit rating and their own.

The board of directors said that the purpose of the move is to improve and consolidate the competitive advantage of franchisees, and help franchisees get long-term and stable business premises and expand their operation scale.

Through financial support, franchisees get the ownership of the shops and expand the scale of operation. The company obtains several years' usufruct of the shops, thereby achieving stable terminals and a more stable relationship with franchisees.

According to a quarterly report, the total revenue of the reporting birds reached 350 million 500 thousand yuan in the first quarter of this year, an increase of 40.96% compared with the same period last year. The net profit attributable to shareholders of the listed companies was 36 million 127 thousand and 805 yuan, an increase of 75.72% over the same period last year, and sales expenses increased 43.42% compared with the same period last year, while the management fees increased 70.52% over the same period last year.

In the past two years, news birds have been constantly adjusting and upgrading their brands.

Through quarterly reports, it can be found that the increase in the number of outlets and the enhancement of quality have made the brand sales grow better, but at the same time, the sales cost and management fee have also increased rapidly.

On the one hand, at present, adding good news birds to increasing investment in the terminal market, increasing the number of outlets, and increasing their support to franchisees with their own funds is a good example; on the other hand, the new bird purchased new office buildings this year and needs to pay maintenance costs. In addition, the company's expenditure on employee benefits has also increased this year.

In fact, the increase of channel support and continuous high sales and management costs are also a notable feature of most well-known brand enterprises.

Especially in the increasingly fierce market competition of men's wear market, while strengthening the construction of self image store and flagship store, stabilizing and supporting the franchisee team, changing the original loose cooperation relationship into a more stable interest community, maximizing the realization of a win-win situation, and fully mobilizing the enthusiasm of the high quality franchisee, has become a popular way of winning the terminal for the brand men's clothing enterprises in the past two years.

Guoxin Securities rated it as "recommended".

Guoxin Securities researcher Fang Junping pointed out that in view of the domestic competitors to accelerate the listing, the good news birds used the raise funds to increase their support for franchisees, and the expansion speed of the brand stores increased.

In 2010, the company invested about 530 million yuan to purchase shops, which accounted for more than 20% of the same period.

The company business series increased 50 stores, an increase of 7.5%, the growth rate was the highest in nearly 6 years (less than 8.9% in 2008).

By increasing financial support for franchisees, the company's business series gross margin increased 6 points to 55.6%, and net profit margin increased 4 points to 26.1%.

It is estimated that its business series will add 150 and 180 new outlets in 2011-2012 years, and 100 and 150 new fashion series respectively. The development will obviously increase speed, so it will increase 2011-2012 years EPS to 1.11 yuan and 1.39 yuan.

Galaxy Securities rated its recommendation as "recommended". Its terminal channel growth rate is expected to exceed 15% in 2011, and the annual net profit growth rate of the company is expected to exceed 40% in 2011.

Shenyin Wanguo rated it as "buy", and Shanghai securities rated it as "winning the market".