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Insight Into The Backdoor Listing Of Textile And Garment Enterprises

2010/7/1 9:36:00 27

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In recent years, textile and garment enterprises have successfully landed their capital markets in the capital market. For example, in 2007, the famous underwear brand "ST" was long controlled by the famous underwear brand in China. In 2009, the leader of Huafu company of China's color spinning industry bought and sold Fiat textile, injected high-quality assets into colored spun yarn, and the performance of assets was greatly improved after the assets were consolidated.

These are important events in the industry.

Backdoor listing

As an important and convenient financing channel, more and more textile and garment enterprises are paying close attention to it.

Recently, there has been a "backdoor" trend.

In March 2010, the Ningbo joint announcement said that the former major shareholder of Ningbo economic and Technological Development Zone Holdings Limited received the relevant documents issued by the SASAC to the Ningbo SASAC in February 26th: it agreed to pfer 90 million 417 thousand and 600 shares of the company held by the Ningbo company (29.9% of the total share capital of the company) to Zhejiang Rongsheng Holding Group Co., Ltd.

The rumour of Zhejiang's Rongsheng, which is based on chemical fiber, is expected to take shape from Ningbo's joint venture. According to the latest announcement, the assets temporarily injected into the plan are real estate, logistics and import and export business under Zhejiang Rongsheng banner. It is unknown whether the stock will continue to be increased or how the petrochemical business will be listed.

Generally speaking, backdoor listing has two advantages over IPO: first, the audit conditions are relatively relaxed; secondly, the time for listing is relatively short.

This is mainly because backdoor listing belongs to the Refinancing Behavior of listed companies. Therefore, more attention will be paid to the performance improvement of backdoor shell companies in audit, and less attention should be paid to the standard operation and historical evolution of backdoor companies.

This feature is undoubtedly for those companies that do not have IPO conditions to win the opportunity of listing and financing, and open a door for capital market financing which is supposed to be permanently closed.

In terms of method, backdoor listing often needs to get the controlling power of the shell company first, then injecting the high-quality assets of the shell company through acquisition and rights issue, pforming, stripping or pforming the inferior assets of the shell company, and ultimately realizing the indirect listing of the shell company.

Take the silver cashmere industry as an example, after the 2006 listed company's "holy snow velvet" incident, the silver cashmere industry was acquired through the acquisition.

Saint snow velvet group

The "Saint snow velvet" national stock held to control the holy snow cashmere, at the same time, it will also replace the assets of the company's high-quality cashmere assets and the "holy snow velvet" assets.

After the replacement, the cashmere industry began to expand its cashmere industry chain. Through the implementation of a series of takeover and merger activities, cashmere manufacturing and sales companies with good assets and good quality were brought into the body of listed companies, thus forming a perfect industrial chain from the acquisition and processing of cashmere to the sale of cashmere products.

In this process, the company's market share, scale and profitability have been leapfrogging.

At present, more resources are borrowed from the market, such as mineral resources, real estate, New Energy Company and so on. The size of such companies may not be large, but the profitability is good, which will help to improve the profitability of the shell companies.

Maybe these companies are not outstanding in the same industry, but they can get a higher premium because of the expectation of "performance improvement".

Therefore, the concept of "backdoor listing" will always be favored by the capital market.

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Textile and clothing

There are also many examples of backdoor and backdoor cases in listed companies. Relatively speaking, there will be more incidents of backdoor borrowing. For example, de cotton shares will finally come to reorganize Shanghai's love family to invest in Cmi Holdings Ltd, and intend to inject good real estate business; after Tianshan textile has been reorganized, Katie Invest-holding Company has become its largest shareholder, and its main business has increased the development and production of mineral resources.

This is related to the current situation of the textile and garment industry, but whether it is "backdoor" or "backdoor", its basic logic is the same, that is, the performance of listed companies has been improved, the industry leaders have obtained the qualification of financing in the capital market, and the social resources have been allocated more effectively.

From this point of view, those textile and garment enterprises that can achieve listing through backdoor must also have industry stars with obvious competitive advantages and good profitability.

For the majority of textile and garment industries in private enterprises, "backdoor listing" is a good means to achieve "national retreat and democratic progress" and is of great significance to the development of the industry.

Throughout history, private enterprises have received too many non national treatment in their development process, such as market access, bank loans, tax preferences and so on. Compared with state-owned enterprises, they face more obstacles and higher operating costs.

Besides, private enterprises are mostly family managed, lacking scientific management and organizational system.

All these have become an important factor restricting the development and expansion of private enterprises.

However, the "backdoor listing" can provide a good external environment for the development and expansion of some state-owned enterprises with low efficiency.

After listing, private enterprises will pay more attention to the regulation of corporate governance structure, gradually realize the pformation to modern enterprise system, and further enhance the efficiency of management.

Therefore, from a long-term perspective, there is bound to be a wave of mergers and acquisitions and backdoor waves in the textile industry in the future. This will also be a manifestation of the industry's better development.