Eratat Lifestyle

The latest fund raising by Eratat has certainly caused concern to many people. I believe Eratat’s management must have done their homework and have considered other sources of funding for their business expansion before deciding on the bond and warrant issue. I think it is more important for those with interest in Eratat to ask themselves the following questions –
1. Has Eratat taken on funding significantly beyond market rates or exposing itself to excessively high business risk? If so, this would be a refection of bad management.
2. The additional fund raised by Eratat is expected to contribute eventually to Eratat’s bottom line. How significant would this contribution be?

From my understanding, Eratat cannot afford to rest on its laurel and be overtaken by others in its business. It must therefore expand and upgrades if it wants to survive or stay ahead in the business competition. Business growth has to come through an increase in the number of distributors. The appointment of just one new distributor with several outlets would have an immediate impact on Eratat’s order book, as the distributor must stocks all its premises with Eratat products in order to open for business. The RMB 100 million raised from the bond issue would not be able to support the business of many additional distributors partly because of Eratat’s generous credit term.
I believe shareholders would have a clearer picture of where the company is heading after the next one or two quarters now that the bond issue is out of the way.

wow..a good discussion by the two camps. By the way, has anyone clarified with CFO, if the principal amt already includes the 12.5% interest?

The deal seems to be addressing depressed share price due to the lack of investment interest than the need for fund. Otherwise it can definitely use internal resource or go to the bank as many have pointed out.

There is little risk for the 2 yr commitment as even with S$6.75m/yr from the cost of funding [discount + 12.5% interest], Eratat can easily pay with its net profit per yr of S$27m......a high interest cover of 4.15 times.

Let's hope Eratat performs a good entry into Shanghai which I think it should given its past track record

Cheers All

Hey Gangho & all,

I sent a request for information earlier today to eratat, and received an initial response that she would reply my question but needed a few days. I'm going to be traveling so I might not be able to post the reply in a very timely manner. However, when I do get it, I will try to post it as soon as possible.

It is interesting to note that Eratat has uped its ante in driving the Eratat's brand thru setting up about ten 鳄莱特生活馆 in key cities such as beijing, shanghai and Guangzhao till Apr 13, promoting eratat lifestyle brand

鳄莱特筹划终端升级尝试发展“生活馆”
2013-04-06 00:16:02
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【中国-品牌动态】 近日，记者获悉，鳄莱特集团已在北京、上海、广州等区域销售中心城市发展近10家“鳄莱特生活馆”，此举不仅提升了整个品牌形象和价值，也带动了鳄莱特在当地市场的销售。鳄莱特集团总裁林建程告诉记者，“这种‘生活馆’集消费体验、形象树立于一身，行业内的许多企业都在尝试这种方式。”

“鳄莱特生活馆的打造，不仅是对细分市场的占领，也能给鳄莱特品牌增强时尚感。”林建程表示，鳄莱特生活馆将在国内的各个省会城市开设。与一般的专卖店有所区别，鳄莱特生活馆不仅关注时尚休闲鞋服的研发，而且在生活馆中融入休闲、娱乐、色彩等元素，在产品上更是添加了皮带、商务皮包、钱包等配件，以保证专卖店的效益为基础，以打造一站式购物为理念，做一个综合型、全方位的鳄莱特生活馆。

“我们选择的都是一线城市或者省会城市，并且生活馆全都设于城市的繁华商圈，营业面积数百甚至上千平方米，装修时尚、产品丰富齐备，二楼则备有咖啡、休闲区、电脑等服务设备，让消费者真正感受到鳄莱特品牌文化的延伸和服务性，这有利于品牌形象的展示与传播，品牌文化与企业文化的塑造。”林建程向记者介绍，多数企业期望通过加强自身的品牌形象，突破国际品牌对于中国一、二线城市市场的霸占，打造生活馆模式，终端形象升级是一个重要的举措。

记者了解到，目前，无论是安踏运动生活馆，还是鳄莱特等，在空间视觉上都会辅以轻松生活元素和时尚元素，通过生活化的货架道具组合与时尚个性的陈列手法、色彩明丽的POP，营造出新颖的视觉感受，成功打造出一个时尚运动品的购物生活馆。“这是顺应市场发展要求，不断改造经营结构，以此来形成企业品牌，进行错位竞争从而得到市场肯定。”林建程表示。

nice. sounds like Eratat LifeStyle Cafe. extra revenue from selling coffee n surf internet?

tactician, keep us updated when there's a reply.

thanks

25/06/2013

16:19:52 0.136 1000 A
16:19:23 0.133 200,000 A
16:19:23 0.133 50,000 A
16:19:23 0.133 100,000 A
15:32:42 0.132 20,000 A
15:30:13 0.132 10,000 A

beautiful buy up, esp the 1 lot at 13.6 c