Quanzhou Shoes And Clothing Enterprises Introduce Venture Capital Financing

Last week, in a joint venture sponsored by the Fujian provincial economic and Trade Commission and the Quanzhou municipal government, a capital feast was unveiled in the 2008 Fujian (Quanzhou) venture capital and investment promotion conference.

More than 300 small and medium-sized enterprises in Quanzhou have launched capital dialogue with more than 70 well-known venture capital institutions.

Reporters learned that in the capital market, "Quanzhou plate" continue to add new businesses at the same time, but there are more and more SMEs in Quanzhou encountered financing difficulties.

However, as a strong supporter of Quanzhou's major industries, the pformation and upgrading of SMEs is of great significance to the overall industrial upgrading.

This time, Quanzhou has introduced many domestic and foreign venture capital institutions to match small and medium-sized enterprises, which is to provide a strong backing for the pformation and upgrading of small and medium-sized enterprises, and also lay a foundation for the new round of industrial upgrading.

In recent years, Quanzhou enterprises have landed in the capital markets both at home and abroad.

Reporters recently learned that Xingye leather, strong Mens men's clothing, Fujian aluminum and other enterprises have applied to the Fujian securities regulatory bureau for guidance and filing, which is expected to add new strength to the Quanzhou capital market of the domestic capital market; the men's clothing and the shoe industry of lien have been listens to listings through the Hongkong stock exchange and the Singapore Exchange respectively.

Relevant data show that since last year, Quanzhou enterprises have made new breakthroughs in the listing of domestic and foreign capital markets. Following the plum blossom umbrella industry's public issuance in SME Board of Shenzhen Stock Exchange, after the listing of 6 enterprises, such as Fufang fabrics, pioneer electronics, Anta sports, sports international, Fuxing Group and Huafeng Textile, XTEP has listed on the Hongkong stock exchange this year, raising HK $2 billion 228 million.

In addition, China's Crocodile Garments Company, which is mainly engaged in sportswear, as well as China's largest bag company, China bag and bag international and main textile products such as knitted sheet fiber, and so on, has been listed successfully in Singapore by Taishan science and Technology Group Holdings, which has raised 48 million 900 thousand new yuan, 80 million 500 thousand new yuan and 55 million 920 thousand new yuan respectively in Quanzhou.

Up to now, a total of 34 enterprises in Quanzhou have been listed on the mainland and abroad, of which 8 are domestic and 26 are overseas, and the total amount of financing has reached about 20000000000 Yuan.

With the encouragement and support of the government, more and more enterprises have joined the queue for restructuring and listing.

It is understood that Hongyuan Group, Haitian textile, Nanan bearing, Jomoo group, Tianguang fire fighting, and the local leading enterprises in the industry have joined the Quanzhou's listed reserve forces.

According to investigation and statistics, in this listed reserve army, there are 39 enterprises and intermediary organizations have signed the contract of enterprise restructuring and marketing, and 60 enterprises have started the preliminary work of restructuring and listing.

Although the strength of Quanzhou's major industries continues to land in the capital market, the number of small and medium-sized enterprises, which accounts for a large proportion of Quanzhou's private enterprises, has been repeatedly faced with financing problems.

Reporters in the "2008 Fujian (Quanzhou) venture capital and Investment Promotion Conference" learned that many small and medium-sized enterprises in the hands of good projects, but suffering from lack of funds.

Lin Huiyang, chairman of Fujian Xiao Xing textile printing and dyeing Co., Ltd., said that its company recently joined Hong Kong Polytech University to develop environmentally-friendly shopping bags without dyeing and biodegradation by using natural fibers such as bamboo and linen as raw materials.

After the development of the product, it has encountered problems in financing, resulting in the company unable to put the product on the market at large.

Another trade company official said that its company imported alumina from abroad and sold in the domestic market. Because the source of supply is in the hands of foreign suppliers, and the domestic market demand is huge, in recent years, its sales ability in the domestic market has also been greatly improved. Therefore, we want to invest in factories in China, produce such products, and control the supply channels.

"We have talked with the relevant government departments about the plant land and infrastructure. If the funds are in place, the plant will soon be put into construction, but no suitable financing channel has yet been found."

The person in charge said.

The head of a stone enterprise in Quanzhou said that its company was mainly engaged in stone production and processing. Now it has been pformed into a mining enterprise that mining granite, marble and other stone materials. Now it has the right to exploit three stone mines in China.

"We hope to buy more stone mines, but the limited funds of the company have hindered the pace of development."

The person in charge said.

People in charge of relevant industry associations told reporters that many enterprises in various industries are similar to these enterprises. The company has good projects, but its own funds are insufficient, and financing also lacks good channels to tie up development.

"Especially in the traditional manufacturing industry, most small and medium enterprises are aware of the need for pformation. For example, resin handicraft enterprises are actively looking for environment-friendly materials under the influence of bad international market conditions and rising raw material prices, but without funds, everything becomes empty talk again."

He said.

(Continued) the traditional industry enterprises with pformation and upgrading are getting higher attention from the venture capital organization

Li Wanshou, President of Shenzhen Innovation Investment Group Co., Ltd., said that the pformation and upgrading of traditional industries in Quanzhou is relatively common, which is very encouraging. Venture capital institutions will pay more attention to these enterprises, for example, their company has invested in two mining enterprises.

"These enterprises were originally engaged in a general, low threshold industry. With the accumulation of various aspects, they tried to pform the upstream industry chain or upgrade technology, such as stone processing enterprises engaged in stone mining, importing alumina trading companies to invest in factories, enterprises using new materials to develop environmentally friendly products and so on, all of which belong to a good mode of enterprise pformation."

Li Wanshou said.

Chen Jian, the director of China investment bank, said that venture capital organizations generally focus on the five elements of enterprises: first, people, that is, enterprises must have efficient management team; two, the market, that is, enterprises must have sufficient market, stable channels, multiple customers, certain pricing power, etc. three, technology and products, that is, enterprises should be innovative, can be distinguished from traditional products, possess monopoly and profitability is difficult to replicate; four is a standardized financial and tax system; five is in line with the rules of capital market.

If SMEs meet the requirements in these five aspects, we can be sure that venture capital institutions will invest in 80%%-90%% if they have the possibility.

He said.

Keating, vice president of the Asia Investment Company of the US investment limited, Chi Jingzhao, told reporters that at the investment and Financing Conference, there were more than 70 venture capital institutions. In fact, every venture capital company has different investment directions, such as the company whose main investment reaches a certain scale and has a mature profit model, and has little investment in the start-up SMEs, and is also relatively cautious.

"However, many venture capital organizations have invested in small and medium-sized enterprises, especially those with potential growth potential.

Our company is also concerned about the private economy in Quanzhou, and has already contacted many enterprises before, hoping to cooperate in the future.

Chi Jingzhao said.

Zheng Liting, deputy director of the Fujian provincial economic and Trade Commission, said that venture capital refers to a new investment mode that venture capital institutions invest in enterprises with growth potential, provide value-added services such as entrepreneurial management, and achieve high capital appreciation through equity pfer.

The introduction of venture capital by small and medium-sized enterprises in Quanzhou will help to improve the ownership structure of enterprises, develop the capital scale of enterprises, improve the management level and competitiveness of enterprises, promote the development and growth of enterprises, at the same time, enhance the ability of independent innovation of enterprises, and accelerate the growth of high-tech enterprises.

According to the representative of Fujian JINDA Venture Capital Co., Ltd., after venture capital organizations cooperate with enterprises, in addition to replenish the capital of enterprises, they will bring advanced management experience to enterprises and enhance the corporate governance level of enterprises. At the same time, improve the shareholding structure of enterprises and improve their social skills, Vc firms's multifaceted resources will be shared with enterprises, and more importantly, it will accelerate the pace of the listing of enterprises.

Experts believe that the current stage is a good period for the pformation and upgrading of small and medium-sized enterprises. For nearly a year, the traditional industries have been faced with the situation that some small businesses are difficult to adapt to the new market environment. Under the premise of a new market structure, a small number of SMEs with innovative consciousness and innovative ability will get the advantages of venture capital organizations and attract capital resources, which will bring great benefits to the development of enterprises.

"The growth of small and medium-sized enterprises will lead to the upgrading of the whole industry. Maybe a few years later, some small and medium-sized enterprises will become the new force of the capital market" Quanzhou plate ".

The expert said.