Hundreds Of Textile Enterprises Queue Up For The Capital Market: Luring>Puzzling?!

According to industry sources, there are nearly 100 spin Clothing enterprises are waiting for capital market Although there are many people who have been repeatedly rejected and rushed again, the so-called“ list The temptation of "is still encouraging a large number of companies to continue.

The main financial data of several textile enterprises before and after the listing are compared. The conclusion is that they have gained both fame and wealth, and even become a member of Forbes Global Rich List. Zhou Chengjian, chairman of Meibang Garments, has been ranked 307 in the latest Forbes list of the world's richest people.

　 The opportunity to leap beyond capital

The financial reports of textile enterprises listed in recent years are encouraging: Toread's total assets increased by 225%, operating revenue increased by 39%, and net profit increased by 69%; The total assets of Meibang Clothing increased by 146%, the operating revenue increased by 42%, and the net profit increased by 61%; The total assets of Lilang increased by 134%, the operating revenue increased by 37%, and the net profit increased by 97%

According to the 2010 Survey Report on the Development of the Clothing Industry released by NetEase, more than 50% of clothing enterprises have plans to go public in the next two years, and more than half of the enterprises believe that this will have an impact on existing brands.

The reality shows that the two eight law (20% of the advantageous enterprises will have 80% of the industry's profits) is being strengthened, and the industry's profits are concentrating on the enterprises with high market share and great brand influence. In the process of industry reform, it will be difficult to surpass this competitive pattern once it is solidified in the future. The textile and clothing industry has gathered a large number of private enterprises in the past historical development. After the private enterprises became public companies through listing, they have obvious advantages in corporate governance and scale expansion. Examples of listed textile and clothing enterprises confirm the fact that the "listing strategy" has completed both internal and external training at one go.

MediaTek, which was just listed in June last year, made a net profit of 126 million yuan in the first three quarters of last year. "Since the company changed and established a joint stock limited company, it has formulated three meeting documents and operated the board of directors, board of supervisors and general meeting of shareholders in strict accordance with the three meeting system. It has also hired a consulting management company to restructure its functions, sort out its posts and reengineer its processes." The head of Lianfa Securities Department said that listing not only standardized corporate governance, More importantly, financing has accelerated the construction of the company's brand marketing network system, helped the company transform into a self owned brand enterprise, and obtained new profit points and opportunities for future leap development.

A staff member of an enterprise preparing for listing revealed that the company is trying to enter the capital market through various ways. A shares and H shares have high quality requirements for listed enterprises. If the impact on domestic A shares and H shares fails, it will fight for listing in overseas capital markets. Although the financing capacity of the overseas capital market is not yet clear, it is still worth a try to put aside many benefits beyond obtaining financing. Because in addition to financing, after becoming a listed company, it will obtain corresponding policy preferences and attention, improve the capital for foreign negotiations, increase the opportunities to introduce strategic investors, etc. "These are resources beyond money!"

　 Financing convenience guarantees follow-up supply

Another attraction of listing is that private enterprises have got rid of the constraints of bank loans in terms of financing, IPO、 Various financing methods, such as additional issuance and rights issue, can guarantee the continuous supply of funds.

Stockholders, securities companies, institutions and others have taken turns to become free platforms to spread brand influence, laying the foundation for enterprises to develop a "large-scale, multi brand" model, and attracting the eye wave of international capital.

After the listing and financing of Meibang Garments, it immediately launched channel expansion and multi brand strategy, and launched MC brand. Although the profit growth was affected in the short term due to high costs and problems in the construction period, the third quarter of last year has turned the tide. In the third quarter of 2010, the total operating revenue of Meibang Clothing was 2.309 billion yuan, up 83.7% year on year, and the net profit was 280 million yuan, up 310% year on year. The company also took the opportunity to launch online shopping brands, forming a pattern where MB, MC and online shopping brands are jointly promoted.

Listing can also enhance brand influence for enterprises. After Lilang went public, it quickly launched its sub brand L2, opened new stores, opened a multi line battlefield, and carried out "event marketing" around the listing and the first anniversary of listing, so as to enhance brand awareness. Nie Wen, the company's brand director, said that the future channel expansion and brand communication are the focus. Lilang needs international reputation, and the choice of listing in Hong Kong also takes into account the concerns of international capital.

After its listing, MediaTek is promoting "DOUBLE COIN" brand spot fabrics and "JAMES" series clothing through the display of spot fabrics and flagship stores of clothing brands. At the same time, the overall business expansion also went smoothly, with the establishment of the Domestic Trade Department and the Japan Department. Four companies with high standards in the world dyeing and finishing industry, including Singapore Destar, the United States Huntsman, Germany Kekai, and Hong Kong Lixin, signed a comprehensive cooperation agreement with MediaTek.

　　 Refuse to go public because of fear of transparency

Listing is not a business without risks. The choice of listing means that the company must gradually become transparent, regularly disclose company information to investors and the public, disclose the company's financial situation, and face strict review and supervision. In addition, due to the sale of the company's equity in succession, it is not ruled out that the company's equity may be diluted. Once the directors' control over the company is diluted, the company's operating direction and strategy will be dominated by major investors.

These factors are also part of the reasons why some well-established textile and clothing family enterprises refuse to go public on the basis of "good money".

Last year, the insider trading case of Tianshan textile was put on file for investigation by the CSRC, which involved a series of scandals. The CSRC reported that Yao Rongjiang, the general manager of Xinjiang Kaidi Investment Co., Ltd., the restructuring party, and Cao Ge, the deputy general manager of the company, were suspected of insider trading and disclosure of insider information. Later, Hongyuan Securities, its independent financial adviser for restructuring, was suspected of involvement.

It was revealed that Jiangsu Sanyou failed to perform its obligation of information disclosure in a timely, true, accurate and complete manner according to relevant regulations, and was finally publicly condemned by Shenzhen Stock Exchange. Some "quasi listed textile enterprises" have also been rejected by the capital market due to suspected related party transactions, and have to rush again.

From the current enthusiasm of textile and clothing enterprises for listing, it can be inferred that, until now, the benefits brought by listing far exceed the risk factors. Enterprises that attach importance to long-term development all hope that the company will enter into standardized operation.

Under the demonstration effect of wealth, some textile and clothing entrepreneurs who stick to the traditional household industry also changed their ideas because they felt strong capital power. In the pattern of parallel economic transformation and capital competition, non participation may mean being eliminated.