No Profits Not Listed -- "Play" Capital, Ready To Be Listed On The Market?

Back in the late 1990s,

In recent years, the pace of domestic apparel listed companies is gradually accelerating, and the number is also increasing rapidly.

After all, IPO (IPO) and capital market refinancing are not only the main channels of direct financing, but also an important way to integrate resources.

From a sports star to a listed company

In the sixth World Cup Gymnastics Competition in 1982, Lining, who was 19 years old, won 6 gold medals in all 7 individual singles Men's gymnastics, creating the myth of World Gymnastics history. He was also known as the "gymnastic Prince".

After that, he had flowers and applause all the way.

But after the 1988 Olympic Games in Seoul, his fate changed rapidly. Due to unexpected mistakes in the game, Lining missed the gold medal and he was no longer the darling of the media.

Then, Lining announced his retirement, and then joined the famous brand named Jianlibao group.

A few months later, Lining asked Li Jingwei, the helm of Jianlibao, at that time, to set up a sports clothing factory.

In 1990, Sino Singapore (JP) joint venture Jianlibao sportswear company was founded (a Singaporean company was willing to contribute), and Lining became the general manager, and the clothing brand was named "Lining brand".

Subsequently, Jianlibao sportswear company and its parent company Jianlibao were separated. Lining's company and Jianlibao completely demarcate the boundary.

The reason is that Jianlibao is a state-owned enterprise after all. If Lining's company is bigger in the future, it will be unclear in terms of property rights, and for the capital market, what is needed is definitely a clear property right enterprise.

Because the consequences of unclear property rights are likely to be devastating for enterprises.

In June 28, 2004, Li Ning Co was listed on the Hongkong stock exchange. At that time, Li Ning Co was already the largest domestic sporting goods company in China.

The opening price was 8% higher than its initial public offering price of HK $2.15.

Li Ning Co raised about HK $530 million by issuing 246 million 500 thousand shares.

The initial public offering of shares issued to retail investors was 132.2 times subscribed, while those issued for the agencies were 11 times subscribed.

Due to the strong demand for retail investors, the proportion of retail issue oriented retail outlets expanded from the initial 10% to 50%.

After listing, Lining's development path is clearly visible. It can also be said that the listing promoted the pformation of the company.

In 2004, Li Ning Co formally advanced to the basketball field, developed "flying armor" basketball shoes, and signed NBA star Damon Jones.

In 2007, the acquisition of veteran table tennis equipment manufacturers "red double happiness";

In 2009, it continued to march into the field of sports equipment and launched a series of badminton racket.

In 2010, Lining's most eye-catching move was to change the bid, and bid farewell to the new LOGO, which used many years old LOGO instead of Lining's original gymnastics cross motion. Its slogan changed from the familiar "Anything Is Possible" to "Make The Change".

While changing logo and slogan, Lining brand focuses on the generation after 90.

No profit, no listing

According to the analysis of insiders, the battle to be launched in the future may not be a brand war, not a price war, nor a "channel war". It may well be a "capital war".

Judging from the overall development of the garment enterprises that have been listed both inside and outside the country, most of them focus on brand marketing and store network construction, and have a larger sales scale. After years of development, they have gained good brand awareness and market influence, and the market share has improved significantly.

Take the "big guy" in the field of domestic casual wear as an example, it has won a reputation of good reputation for its good reputation and scale advantage over the years.

The realization of the listing of the company is more obvious for its further development in the field of clothing.

In August 28, 2008, the Shanghai Metersbonwe apparel Limited by Share Ltd (hereinafter referred to as "Mei Bang dress") was listed on the Shenzhen Stock Exchange. The opening price for the first day was 30 yuan, up 51.82% over the issue price.

According to the media reports at that time, the fund raised nearly 1 billion 400 million yuan, about 80% used to expand the company's marketing network, and 15% used for information system improvement projects.

Zhou Chengjian, chairman of the company, said at the time that investment projects to raise funds would not be effective in the short term, but the overall profit of the company would be improved as the benefits of the marketing network and information system improvement projects gradually emerged.

According to the analysis of Shenyin and Wanguo, Smith Barney's business income in 2009 was 5 billion 218 million yuan, up 16.63% over the same period last year, with a total profit of 633 million yuan, a decrease of 24.77% compared with the same period last year. The net profit attributable to shareholders of listed companies was 604 million yuan, up 2.84% over the same period last year.

In addition, the number of terminal stores reached 2863 at the end of 2009, of which 523 were direct outlets, 2340 were franchised stores, and 165 were open stores. The expansion rate was 6%.

In 2010, the China Daily reported that the revenues and profits of the company in the first half of the year were 2 billion 541 million 940 thousand yuan and 40 million 340 thousand yuan respectively, and the earnings per share were 0.04 yuan. The sales revenue in the medium term increased by 39% compared with the same period last year. Its sales revenue growth mainly came from the continuous expansion of the channel and the same store growth.

From the channel composition of sales revenue, the company's medium-term direct sales and franchise revenue increased by 53% and 28% respectively, and the proportion of direct battalion accounted for 52%, and the proportion increased further.

Orient Securities Analysis believes that the main reason for the rapid growth of the US direct revenue in the first half of 2010 was the concentration of new outlets in 2009.

In October 28, 2010, the third quarter financial report released in October 28, 2010 showed that the company achieved 2 billion 310 million yuan in the third quarter of 2010, an increase of 83.7% over the same period last year, and realized a net profit of 280 million yuan, an increase of 309.93% over the same period last year.

In the first three quarters, the income reached 4 billion 852 million yuan, an increase of 57.5% over the same period last year, and the net profit of shareholders belonging to the listed company was 320 million yuan, up 7.16% from the same period last year.

Analysis of Guoxin Securities, the third quarter of the United States and New Zealand clothing stores added about 160, reaching more than 2900; joined revenue grew by 53% over the same period, accounting for more than 50% of the revenue share; the number of outlets reached 600, and the growth rate of direct revenue increased by nearly 70%.

The company's channel advantages, design advantages and brand planning capabilities will provide strong impetus for the company's future performance than expected.

It is not difficult to see that after the listing of Smith Barney clothing, its scale, profitability and growth indicators can all be able to see its development.

In fact, in addition to the obvious difference in scale and profit, the listing of enterprises will have different degrees of positive effects in other aspects.

According to Liu Lei, PWC capital market service group, listing can not only promote the reform of enterprises themselves, but also enable enterprises to integrate with the international market. For example, some enterprises may consider going to the United States and other countries to go public. In the process, it is a good time for enterprises to consider integrating with the international market.

In addition, listing puts forward higher requirements for corporate governance.

"A listed company is a business with a whole set of management methods, not a boss or a small number of people.

The owners and managers of listed companies show completely separated state. Some decisions, problems and the future development direction of the company should consider the interests and ideas of the minority shareholders.

Therefore, this will improve the corporate governance structure.

Liu Lei analyzed.

At the same time, listing can also enhance shareholder value.

"Before the listing company is a Private Companies, how much the company is worth is not measured by an accurate figure.

After listing, in addition to using accurate figures to calculate the value of an enterprise, the value of shareholders will follow.

Liu Lei also said that although listing is a very painful process for enterprises, it is also a good assessment.

"In the process of listing, we should take all matters in the history of enterprises, including problems, and so on to review them and see whether they meet the requirements of listing.

Therefore, listing is also a process of re evaluating enterprises.

In a word, listing is of great importance to brand promotion, image enhancement and business promotion.

According to Liu Lei's research, at present, the domestic A share clothing enterprises have significantly increased their operating income and net profit after listing.

Pre launch "warm reminder"

It is understood that at present, a group of enterprises with strong momentum of development are actively planning to go public.

Limited by Share Ltd is one of them, and now the company has entered the stage of practice.

According to the plan of chairman Wu Jianmin, the company will be listed in the domestic small and medium board market in the future.

In an interview with Wu Jianmin, he said he had decided to enter the capital market from the first day of starting his business.

"After the listing of the company, he will pform into an integrated enterprise which is compatible with women, clothing, multi brand, multi market entity and capital market, rather than a single dress brand, nor is it a single brand serialized brand."

Liu Lei, a service member of PWC capital market, reminded that before going public, enterprises must know where their business prospects are, where their selling points are, where their enterprises are in the industry, including market share and profitability.

For example, at the beginning, the seven draft wolf's "prospectus" positioning itself is men's casual wear, and the comprehensive market share of all kinds of products is among the top of the same products; PEAK emphasizes its top position in domestic sports shoes and basketball shoes; the selling point of 361 degrees is that it considers itself one of the fastest growing sportswear in China, the compound growth rate of revenue is more than 100%; llon is "ranked first in the mainstream brand of China's second and second tier cities"; Bosideng is a leader in the down industry.

Take the example of "power fighter" as the leading brand in jacket category, and it is also clear about listing.

"I think that for most enterprises, listing is the only way, or just a question sooner or later," said Lian Jin, vice president of Jin ba.

But the final listing of enterprises must not be listed on the market. Actually, listing is capitalization of all assets. "

In 2007, the strong man's men moved their headquarters from Jinjiang to Shanghai.

By the end of the year, the name of the company was changed to the Limited by Share Ltd, which is ready for listing.

As can be seen from the above, every garment enterprise is very stressed and has a very clear market positioning before listing. This is also an important aspect of the follow-up development after the listing.

Liu Lei said that the capital market ultimately reflects the value of the enterprise is the price of its stock, so the capital market likes to show everything in figures.

From the prospectus of enterprises, it is not difficult to see that the domestic coverage of the marketing network and the number of authorized shops have been mentioned in varying degrees.

From the product level, some enterprises have also refined to the point of digital, for example, 361 degrees will specifically refer to 57 professional R & D personnel and 47 designers; in terms of management team and corporate culture, Lining emphasized that there are more than 10 years of experience in China's sporting goods industry and so on.

In the exchange with practitioners in the clothing industry, Liu Lei found that one of the most common indicators was "the ratio between cost and final price", and we all think that this value is better than 7~8 times.

"But if this value is 3~4 times, the enterprise may have problems, and it will be difficult to have a higher gross profit.

Therefore, enterprises need to know the quality of your assets (such as the turnover speed of the entire assets, etc.), and the quality of the customers (such as the customer positioning of the product group and the purchasing power of them). Can all aspects bring good returns to the enterprise? "

It is worth mentioning that from the point of listing, there are mainly three choices of domestic clothing enterprises, namely, the domestic A share market, the Hongkong market and the NASDAQ (Mcglaughlin landed on the stock market in October 2009).

However, this is not to exclude the possibility that clothing companies will be listed in other overseas markets in the future.

Liu Lei pointed out that although some markets are easier to be listed, time is easier to grasp, and the supervision is not strong enough, the problem is that they may not be able to raise funds. At the same time, the market has the ability of financing and refinancing, its status in the financial market, whether it has restrictions on investors' status and market supervision environment.

In addition, Liu Lei also said that the timing of the listing is also very important, and many times to consider the listing place.

When choosing the timing of listing, the following factors should be considered: the macroeconomic environment, the preparation for the listing of enterprises, when to use the funds raised on the stock market, whether there are other eye-catching enterprises listed on their own when listing, and the impact of some major holidays.

Expert line of vision: listing is not the only criterion

In recent two or three years, many garment enterprises are keen on going public.

Li Kailuo, an economic research expert in the famous fashion industry, seems to see that the benefits that enterprises can get through listing is obvious: to melt funds and achieve rapid and large-scale development, which is especially effective for those homogeneous products enterprises, such as sporting goods industry and leisure wear industry.

In addition, the domestic demand for listed companies is relatively strict, which is not only conducive to the standardized operation of enterprises, but also has a greater influence in the public and has a huge advertising effect.

Take the wedding bird, Wu Zhize, chairman of the news bird group, has said that the popularity of the brand has increased rapidly since the listing. At present, there are hundreds of millions of investors in China. After the listing of the stock, a large number of shareholders are concerned about the company's stock every day, and the publicity effect is even better than that in CCTV.

It is understood that after the listing of the birds, agents from all over the place have reported that the consumers will be linked to the listed companies and their popularity will be improved rapidly.

And after the listing, the company also feels the obvious convenience in the foreign trade.

Such as buying, choosing stores, purchasing raw materials and so on, are more advantages.

The participants and partners feel that the credibility of listed companies is even higher.

Although listing has many advantages, Yang Dayun, President of UTA Fashion Management Group, thinks that listing is a double-edged sword, not a sole criterion for evaluating clothing enterprises.

For example, for personalized brands, the significance of listing is not large, such as exceptions, Mass Phil or women's clothing brand with original character.

The advanced women's clothing brand with original meaning can not be done well by listing capital or obtaining support. They are more likely to make brand extensions through forming a preference and cognition among consumers, such as extending to perfume and cosmetics.

Valentino, who we know, is following this path of development.

Therefore, the impact of listing on personalization and high-end brands is not particularly large.

But for popular brands, especially those that need mass production and scale, the impact is enormous.

Through financing, such enterprises can occupy a larger market share at the terminal.

This is good, but there are also disadvantages. The listing of enterprises is not a one-time financing, it will continue to raise money in the process of growth, in this process will dilute their rights and interests.

That is to say, the more shareholders come in, the less the share held by the original controlling shareholder.

The Ford Motor Co family is not the largest shareholder in Ford Motor Co; Chanel itself does not own the largest share of Chanel; Giordano, for example, is constantly weakening, its founder's control over the brand is becoming weaker and weaker, and investors need to respect the opinions of investors. But investors themselves are not concerned about the clothing industry, they only focus on interest repayment.

What is return? That is, quarterly, or even annual, profits are the highest.

To fashion this line, when the brand reaches a certain age, it will become as old as human beings and lose physical strength. At this point, surgery is needed, repair is needed, and image needs to be reconstructed so that the brand can go on.

This also means two to three months or two to three quarters, or even one or two years for brand pformation.

But for a listed company, the board of directors and investors certainly do not want to see this result. They want to see that their performance will increase by a certain percentage every year.

If a person puts forward a plan for immediate growth, and if a person raises a plan to lose money after two years, the investor will definitely choose to choose the former, and the brand will eventually become an abandoned brand from a good brand.

Therefore, the listing of service enterprises is a double-edged sword. We need to take measures in line with local conditions and consider carefully.