< p > < strong > financial situation, /strong < < /p >

< p > according to the Red Dragonfly Footwear prospectus (Declaration), with the expansion of the marketing network terminal and the expansion of sales scale, the book value of the Red Dragonfly Footwear inventory is 496 million 523 thousand and 200 yuan, 606 million 356 thousand and 800 yuan and 622 million 758 thousand and 200 yuan from 2011 to 2013 respectively.

At the end of 2013, the proportion of total inventory value to current assets was 41.27%, and the inventory turnover pressure was relatively large, which was consistent with the company's profit growth space narrowed.

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< p > in addition, in the sales expansion of red dragonfly, the proportion of accounts receivable increased sharply, accounting for 27.22% of current assets, and the growth rate of accounts receivable in 2013 was 40.27%. This also caused a large amount of accounts receivable turnover pressure.

From 2011 to 2013, the accounts receivable turnover rate of the company decreased year by year, 13.46%, 10.84% and 8.60% respectively.

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< p > we can see that in the expansion of the company, the quality of accounts receivable decreased significantly. The risk of bad debts faced by the Red Dragonfly < a href= "//m.pmae.cn/news/index_c.asp" > footwear industry < /a > has increased.

This can also be explained from the company's provision for bad debts.

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< p > 2011 to 2013, the bad debts of Red Dragonfly Footwear industry increased from 12 million 682 thousand and 100 yuan to 15 million 680 thousand and 300 yuan in 2012 and 22 million 171 thousand and 800 yuan in 2013. The stock price depreciation also increased from 4 million 114 thousand and 600 yuan in 2011 to 13 million 624 thousand and 600 yuan in 2012 and 42 million 248 thousand and 200 yuan in 2012. < a href = "//m.pmae.cn/news/index_c.asp" > cash flow < /a > situation is worrying.

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< p > < strong > a href= < //m.pmae.cn/news/index_c.asp > product quality < /a > unqualified has been punished < /strong > /p >

< p > according to the Red Dragonfly prospectus, in September 7, 2011, the Red Dragonfly Jiangsu sales branch had the sales quality of unqualified leather shoes. Nanjing Pukou District Bureau of industry and Commerce ordered the company to stop selling unqualified leather shoes and impose a fine of 9000.

In August 6, 2012, Yongjia county quality and Technical Supervision Bureau confiscated the unqualified long sleeved shirt made by Wenzhou Red Dragonfly children's Articles Co., Ltd., and imposed a fine of 15600 yuan.

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< p > in the mode of production of the company, the proportion of outsourcing purchases increased generally. In the year 2011 to 2013, the purchasing amount of leather shoes for Red Dragonfly shoes was 7 million 672 thousand and 700 pairs, 8 million 158 thousand and 500 pairs and 8 million 5 thousand and 900 pairs.

Quality control risks have been stepped up. According to the search results of China's quality Wanli line, complaints about the quality problems of the Red Dragonfly shoe industry have been ongoing.

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< p > it is worth mentioning that during the duration of the company's survival, the new production rate of major production facilities showed a negative change. The new rate of many equipment was only about 30%. Not only that, there was also a large depreciation of machinery, pportation equipment and electronic equipment, which could not be ignored.

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