Zhejiang Busen Apparel Limited By Share Ltd Successfully Met.

The intricate paction between private capital in Zhejiang is dazzling.

In July 12th, Zhejiang Busen costumes Limited by Share Ltd successfully met.

After consulting the prospectus, I find that behind this company, which is mainly clothing business, is the operation of capital.

Listing of family businesses

According to the prospectus, 12 Shou family members headed by Shou Cai Feng share 88.63% of the Busen group of Busen controlling shareholder in Zhejiang, and control 73.40% of Busen in Zhejiang through Busen group.

In 2009, Busen's clothing earnings per share were 0.47 yuan. If the issuance is successful, earnings per share will be diluted to 0.35 yuan.

With the average price earnings ratio of the average 40 times of the Shenzhen Shenzhen stock index, the price of Busen apparel will reach at least 14 yuan / share.

By this calculation, the stock market value of Shou family will be less than 712 million yuan.

However, analysts pointed out that 12 family members have shareholdings, which is relatively rare in the history of family holding in China's stock market.

Such enterprises, if there are differences because of the reduction and development of the company, there are great risks in corporate governance.

Continuous low price pfer

And the pfer of Busen equity among different capitals is worth seeing.

The prospectus shows that before this issue, a natural person named Shen Fengqing owns 3% of Zhejiang Busen, which is the fourth largest shareholder and the first natural shareholder.

Who is Shen Fengqing?

The name of the Shou family member stated in the prospectus only shows that the Jiaxing man was granted the share price from the Hangzhou Rong GUI Investment Limited company in May 15, 2008, at a price of 1.66 yuan per share, unchanged from the net assets per share at that time.

The investment of Rong GUI was founded in June 20, 2007, formerly known as Hangzhou Investment Co., Ltd., with a registered capital of 5 million yuan.

In December 13th of that year, Busen group pferred its 3% stake in Zhejiang Busen to bMing investment, making a price of 1.50 yuan per share, less than 1.54 yuan of net assets per share.

5 months later, the investment in the stock market was sold to Shen Fengqing. There was almost no premium. The reason for the pfer was "business development needs".

In contrast, in May 15, 2009, Busen group bought a 0.4% stake in Ding Lixin, a manager, at a price of 4 yuan per share, while Ding Lixin bought Zhejiang Busen two times at a price of 1.5 yuan per share.

As for institutional investors' low-priced shares, Zhejiang Busen explained in the prospectus that the purpose of share pfer is to optimize the ownership structure of the company and improve the corporate governance structure. The price of share pfer is slightly lower than the net assets per share after the two sides have agreed on the agreement.

See "PE corruption door" again?

It is worth mentioning that at present, Shen Fengqing shares the fourth largest shareholder of the company, and the mode of its shareholding is no different.

In the second day of the investment of Rong GUI investment in Zhejiang Busen, Han Si Kun yuan made a copy of its investment in Zhejiang Busen.

In December 14, 2007, Busen Group signed a share pfer agreement with Han Si Yuan Yuan venture to pfer the 3% stake in Zhejiang Busen to Han Si Yuan Yuan venture.

The price of the paction is the same as that pferred to the investment of bMing, which is also lower than the net assets.

What is the investment of Rong GUI, especially Han Shi Kun yuan venture? What kind of status can it invest in stocks with less than net assets and precise lightning?

According to insiders, Cao Guoxiong, manager of Han Si Yuan Yuan venture, is closely related to Busen Zhejiang's lawyer Zhang Xiaohong.

Public information shows that Zhang Xiaohong and Cao Guoxiong have jointly promoted the listing of many Zhejiang enterprises overseas and in China by two people.

"Intermediaries in the process of counselling enterprises, grasp the core information of enterprises, some bad practitioners may take this opportunity to discuss conditions with enterprises, through related companies to participate in shares at a low price to be listed companies, to gain huge profits."

The above market personages commented.