How To Dance The Upgrading Of Textile And Apparel Listed Companies?

The development of capital market provides a favorable opportunity for enterprises to achieve leaping development. How to make use of the capital market to accelerate transformation and development has become the current hot spot.

August 6th, China's textile industry Entrepreneur The research group of the Federation of listed companies and the sales and trading headquarters of Guotai Junan Securities Co organized a seminar on the development of Textile Listed Companies in Inner Mongolia Ordos cashmere Limited by Share Ltd. Representatives from the Ministry of industry and information technology, local governments, industry organizations, securities research institutions and fund companies, as well as more than 10 textile listed companies, attended the meeting and discussed the related issues.

Follow the trend and refinance

The transformation of industry needs support from the government. list Another important way for companies to get support is capital market. Among them, "how to get money" and "what to do with money" are crucial.

According to data provided by Guotai Junan, from the perspective of fund-raising, the total amount of fund-raising raised by the textile sector in 2009 was 5 billion 120 million yuan, down 6.11% from the same period last year, which is in sharp contrast to the 55% increase in the financing of Shanghai and Shenzhen two cities, of which IPO and refinancing decreased by 5.56% and 6.83% respectively. In terms of refinancing, at present, there are 11 plans for the issuance of textile plates, 1 for the rights issue, and 1 for corporate bonds. The number of them is obviously lower than that of machinery, real estate, petrochemical, metals, information technology and electronics.

Regarding this, Li Zhixian, senior researcher of Guotai Junan Securities, said: "because of the high threshold of listing and refinancing, textile industry has been lagging behind as a traditional industry in the A share market for many years. In recent years, it has dropped from 10% in the higher period to about 1%. In the case of financing difficulties, if the textile listed companies want to achieve refinancing successfully, they must understand the new rules of the listed companies' policies in a timely manner and choose the operation mode rationally so as to realize the full use of the capital market.

He pointed out that in recent years, the way of refinancing textile sector is mainly based on seasoned equity offerings. Companies should choose appropriate refinancing schemes according to their profitability, shareholding ratio, capital structure and issuing efficiency.

In the past two years, a series of macro policies and industrial policies have been promulgated in the past two years. The SFC further strengthened supervision over the use of funds raised by listed companies. Therefore, textile market companies want to be successful again. financing We must thoroughly understand the relevant policies and grasp the direction of the industry.

In refinancing audit, regulators are more concerned about company related transactions, profitability, accounting information standardization, and equity investment projects compliance, feasibility and necessity. When interpreting the relevant policies, securities professionals pointed out that the textile industry belongs to the industry that the Ministry of environmental protection requires refinancing, which needs environmental verification. Therefore, the company needs to get the environmental verification opinions of the relevant departments before refinancing the trial conference. If the listed company's investment projects belong to the ten industries with excess capacity stipulated by the state, it is necessary for the ministries and commissions such as the NDRC and the Ministry of land and resources to give feedback before holding feedback meetings, so the progress of the audit is relatively slow.

In addition, the regulatory policy of the real estate industry has been stricter recently. Professionals suggest that companies with real estate businesses should comb out relevant businesses carefully and prepare for rigorous audit.

What to change with capital

Listed companies are the best in the industry, and there is a strong sense of technological innovation and industrial upgrading. But even so, they still face many problems when they consider what to do with money.

"Enterprises have little understanding of macro information. How to make good use of capital markets to enhance and accelerate enterprise operation is a difficult problem. For example, we often say that enterprises should diversify into an industry and a good project, but how to choose this project is very difficult.

To this problem, Wang Bin, chairman of Shenzhen textile (Group) Limited by Share Ltd, gave his answer: first, everything should start from reality; two, enterprises need to create new core competitiveness, because the talents and technology in the new field can be circulated, but the core competitiveness can not be bought; three, enterprises must make unremitting efforts in optimizing the ownership structure, management structure and product structure, so as to enhance and accelerate the overall development of enterprises.

Since the listing of Erdos Cashmere Group in Inner Mongolia, the total financing of the three financing has been RMB 2 billion 500 million yuan, which has played an important role in raw material procurement, expansion of production scale, brand generation and sales channel construction, and has injected new impetus for the re development of enterprises.

In 2003, the company fully integrated cashmere resources and coal resources, so far it has invested 14 billion yuan. In 2009, the group's main business income exceeded 8 billion yuan, of which 2/3 came from the new industry. In other words, the group started by weaving and fermented by the capital market and nurtured two times its own industry.

Compared with the big opening of Ordos, Shenzhen fuanna home furnishings Limited by Share Ltd has been focusing on capital market to build talent incentive mechanism since its listing last year. At the end of last year, 109 executives were implemented on the basis of private placement. In July this year, the company announced the stock option incentive plan. 196 executives, core technicians and middle managers were benefited from the incentive plan.

"The implementation of this incentive plan means that the company has to pay millions of dollars a year. For the company, it not only increases the management cost, but also bears certain performance pressure. However, training and retaining talents is related to the long-term development of enterprises. In today's increasingly fierce competition for talents, enterprises should make a correct choice. Hu Zhenchao, Secretary of the board of directors of the company, further emphasized that option incentive provided a possibility for retaining talents, and the expectation of multi-level treatment was that the company must combine long and short term plans to truly stabilize the talent team.

It can be seen that capital changes not only products and projects, but also the internal driving force for enterprises to improve their development.

Transformation may not be necessary.

Transformation and upgrading does not mean that it will be further away from the textile industry. Textile listed companies use capital market to explore the way of transformation and upgrading.

Zhang Li, director of the consumer products division of the Ministry of industry and information technology, said that the systematic study of the development of the textile industry and the vigorous development of new strategic industries are major issues related to the national economy and the people's livelihood.

Shenzhen textile group was reorganized and listed on the basis of state-owned enterprises. Take chairman Wang Bin's words, in the fierce market competition, Shenzhen Textile Group has gone through a painful transformation. In 2009, Shenzhen textile A directed 110 million shares to raise funds for the construction of TFT-LCD polarizer phase I project, which is one of the important materials for LCD display, with a total investment of 1 billion 850 million yuan. {page_break}

Although the move turned the main business of the company from textile and clothing to polarizing film production, Wang Bin emphasized that the technology is closely related to the textile industry. Polarizer is a composite material made of polyvinyl alcohol (PVA) stretching film and cellulose acetate membrane (TAC) after many times compounding, stretching and coating. It should belong to the category of industrial chemical fiber, and its core technology is still in the hands of few Japanese companies such as Sumitomo chemical. Although some people advocate that we should rename it as an electronic company, we should not relax in the field of textile industry.

Someone walked out and someone came in. If many listed companies have been unknowingly transformed into "walking on two legs", the Limited by Share Ltd of Ningxia cashmere industry has been focusing on the development of cashmere industry since its listing. The Bank of China will adjust its structure in the capital market to accelerate the extension of raw materials to cashmere products and clothing industry. Last year, the company successfully acquired the world-famous cashmere products and household products company, Duncan cotton mill under British Dawson International Company, and made a solid step towards building a cashmere brand enterprise with international influence and complete industrial chain.

"There is no contradiction between keeping textiles and industrial transformation. Such as high performance fiber and composite materials, medical industry textiles and other research and development fields, the development prospect is very broad. We hope that the listed companies will pay attention to it. Cao Xuejun, director of textile department of the consumer goods division of the Ministry of industry and commerce.

As Yang Jun, Deputy Secretary General of the China Textile Industry Association and vice president and Deputy Secretary General of China Textile entrepreneur association, said, "listed companies are not props, but enterprises' organism." If the textile listed companies can make good use of the capital market, they will be able to do well in transformation and upgrading.