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Foshan Sprint Two Shoe Companies In The First Market On Saturday

2008/8/28 10:46:00 5

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A few days ago, the Foshan Saturday shoe Limited by Share Ltd, with the brands of "ST&SAT" (Saturday), "FONDBERYL" (Febe Lil) and "SAFIYA" (Sophia), submitted the first application to the SFC and will attend the meeting on August 29th.

In the stock market slump, manufacturing enterprises under the circumstances of internal and external difficulties, as the first two companies to be listed in the Shanghai and Shenzhen stock markets, whether Foshan can go smoothly on Saturday will cause widespread concern.

　　現金流緊張渴求融資

As a manufacturer specializing in women's shoes, Foshan has 3 main competitors on Saturday: Belle International Holdings Ltd, Prime Success International Group Limited and Hong Guo International Industrial Co., Ltd.

According to public information, in 2007, four companies in BELLE, Yong, hung, and Foshan achieved turnover of 11 billion 672 million yuan, 3 billion 854 million Hong Kong dollars, 739 million yuan, and 606 million yuan, with net profits of 1 billion 979 million yuan, 389 million Hong Kong dollars, 110 million yuan, 85 million 710 thousand yuan, respectively, on 2007.

In the face of industry competition, Yu Hongtao, vice chairman of Foshan on Saturday, said: "if the company can not further increase its market share in the future, it will have a negative impact on the company's brand promotion and sustained growth."

In its development report Saturday, Foshan stated that the two key factors for the further development of the company lie in brand building and financial support. Especially, the thirst for capital is more important and urgent.

It has been revealed that in recent 3 years, the net cash flow of Foshan's business activities on Saturday is relatively low.

Net cash flows of operating activities in 2005, 2006, 2007 and 2008 were 2 million 566 thousand and 600 yuan, -86.83 million yuan, 12 million 283 thousand and 200 yuan and -4991.31 yuan respectively, while the net profit after tax was 4 million 305 thousand and 100 yuan, 27 million 420 thousand and 700 yuan, 85 million 710 thousand yuan and 20 million 410 thousand and 900 yuan in the same period.

The tension of cash flow has greatly restricted the further expansion of Foshan on Saturday. Especially in the context of monetary tightening, the major competitors, BELLE, Yung, and hung Guo, have been listed in Hongkong or Singapore respectively. As a non-listed company Saturday in Foshan, financing channels and financial costs undoubtedly become a big shortcoming.

According to the company's prospectus, Foshan's listing and financing on Saturday will mainly be used for business expansion and brand building: it includes 430 million yuan to raise funds for chain store construction projects, 72 million 470 thousand yuan for women's shoes production line expansion technical pformation projects, 44 million 152 thousand yuan for logistics distribution system technical pformation projects, and 22 million 360 thousand yuan for R & D center expansion technology pformation projects.

　　有望再造億萬富豪夫妻

For China's capital market, once Foshan successfully listed on Saturday, it will mean the birth of the first shoe companies in Shanghai and Shenzhen two cities.

For Zhang Zemin and Liang Huaiyu, it means that the dream of wealth that ranks among hundreds of millions of rich people can be realized.

Statistics show that the total share capital of Foshan issued before Saturday was 160 million shares, and the total share capital after issuance was 215 million shares, of which the largest shareholder, Shenzhen, held 86 million 729 thousand shares on Saturday, accounting for 54.21% of the total share capital issued before, while the second largest shareholder, Shenzhen Li Yuan, held 54 million 871 thousand shares, accounting for 34.29% of the total share capital issued before.

The controlling shareholders of Saturday Investment Holdings and Singapore Liyuan are Zhang Zemin and Liang Huaiyu respectively, and the two are husband wife relations.

After issuing 55 million shares, Zhang Zemin and his wife, Liang Huaiyu, indirectly held Foshan's shares on Saturday from 80.44% to 59.87%, and are still the actual controllers of the company.

In the first quarter of 2008, Foshan realized a net profit of 20 million 410 thousand and 900 yuan on Saturday. When the company went public, its total share capital was 215 million shares, with an average earnings of 0.0949 yuan per share. If the price earnings ratio was issued at a price of 20 times, the issue price would exceed 7 yuan per share.

If this projection is made, this means that Zhang Zemin and Liang Huaiyu have two people with their shares in Foshan only on Saturday, and their value will be as high as about 900 million yuan, and they will become the 100 million billionaire couples.