Although at present the jewellery industry performance growth is slowing, but didn't affect the listed company enthusiasm. Securities regulatory commission recently released by the issue JianGuanBu initial public offering declaration enterprise basic information table to show, at present in the Shanghai and shenzhen two city queue listed jewelry enterprise a total of five, including IPO last year was no shenzhen millennium star jewelry co., LTD. (hereinafter referred to as the "millennium star), at present the state is still in the preliminary examination.

For the millennium star is concerned, the stage a come back, internal control system consummation degree, inventory and behind the operational risk control and the future profitability or will become the important factors to success reversal.


For the first time because of napa stores have IPO income adjustment is no

As a collection of jewellery product design research and development, production and processing, brand chain as one of the jewelry enterprise, star of the main products are Mosaic jewelry, metal jewelry, etc. The millennium star in 2011 open its prospectus, quasi landing ShangJiaoSuo, issued 85.6 million shares, to raise funds is mainly used for marketing network construction project, and the technical transformation projects and other main business and the working capital project.

However, the millennium star first IP O journey is not smooth, although the claim to after years of development, in view of own stores and franchisees enacted a series of system and process, and in the actual management strictly carry out, but in response to feedback in the income of the reporting period structure adjustment, will be previous filing materials stores part of income adjustment to wholesale income. Among them, 2008-2010 napa stores respectively to reduce income 245 million yuan, 224 million yuan and 2. 5.9 billion yuan, the amount of the corresponding adjustment to wholesale income. Reason is not part of the napa stores to use the company's brand business or at the same time operating other brands.

It is because of our income adjustment problems lead to the millennium star IPO application is no. To this, the CSRC FaShenWei opinion, the significant adjustment and explanation can't judge of the internal control system in our company in the reference period whether to effective implementation, and the initial public offering and listing to manage the way "(CSRC order no. 32) the provisions of article 24 of the discrepancy.

However, the millennium star relevant personage in an interview said that the millennium star franchisee income adjustment just in total sales, net profit and gross profit margin SanBuBian premise of internal adjustment.

It is important to note that, due to the franchisee is often the joining trader set up independent shops or counters, and the joining trader responsible for their own shops or shop management work and the corresponding management cost, therefore in the actual operation of own stores than in price control, business management and payment settlement differences, even and independents in price formulation and goods display sales there are conflicts, and finally influence the overall interests of the company.

The prospectus show that by the end of June 30, 2011, the millennium star a total of 174 home boutique, including 44 shops to belong to in special hui and union of the passenger door, plus alliance shop accounted for more than 25% of to. To this, the millennium star in the prospectus also admit, and constantly with the joining trader's human, financial and material resources to expand marketing network, and through a series of system to strengthen the management of the joining trader, maintain the stable development of the joining trader, but due to the stores by the joining trader control, the company's rules and system is not necessarily can keep unified effective execution, according to the jewelry industry experience, the development of own stores is a kind of trend, in order to strengthen the management of autonomy, and strengthen the company's brand influence, the company needs to strengthen the construction of own stores, increasing the scale of own stores.

Stock price fluctuation risk facing high

In the millennium star greatly expand marketing network, operating income rapid growth and at the same time, its inventory scale are also increases year by year. The prospectus shows, 2008, 2009, 2010 and 2011 by the end of the end of June, the millennium star of the net inventory were 3. 8.7 billion yuan, 7. 6.5 billion yuan, 8. 9.5 billion yuan, 9. 5.9 billion yuan, accounting for the proportion of current assets were 64.95%, 76.68%, 86.83%, 78.96%.

Specific perspective, inventory mainly for gold, diamond, jade and other raw materials, as well as the Mosaic jewelry, metal jewelry and other commodity stocks. Among them, the gold accounted for the proportion of raw materials in more than 40%.

To this, the millennium star interpreted as, at the end of June 2011 merchandise inventory balance is increased by the end of 2010 10346. 430000 yuan, 2 0 1 0 at the end of the year library save shang product is more than the forehead 2 0 0 at the end of nine years increase long 11878. 860000 yuan, the main reason is the company report period own stores scale increased year by year at the end of the year to shop goods balance increases accordingly, among them 2011 years 1 - June 26 new increased own stores, net increase 20 independents; 2010 annual new increased 49 self-run store, net increase 40 own stores; 2009 the new 24 self-run store, net increase 8 own stores; The second is subsidiary DE flight in 2009 into the normal production and business operation stage, and the production and business operation scale expands unceasingly, in addition to the Spring Festival is the traditional gold jewelry consumption busy season, Germany at the end of Mr The reserves of gold manufactured amount is larger, increases year by year.

A securities analysts said, affects the jewelry industry performance is one of the main factors leading to gold, commodity prices and gold is closely related to trend. Because from buying gold, production and processing to sales have certain cycle, and sales price according to the real-time changes in gold, once the gold price fall will bring business risk. Gold prices fell in reducing the rate of gross profit and net profit at the same time, it will lead to decline in demand for gold investment, to cause adverse effect on sales.

It is worth noting that the millennium star in the prospectus also admitted that, in the inventory balance larger circumstances, if appear yellow platinum prices or diamonds, emeralds greatly the price of falling, it will lead to a jewelry products net realisable value less than the cost of purchase, the company will face a withdrawal inventory write-down risk. And this has been precedent, in the second half of 2008, platinum raw material prices dropped sharply, leading to the corresponding material realizable net
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