Is The Truth Behind Shandong'S IPO?

Shandong

Although it has been many days since the first IPO, the story around Shandong's Limited by Share Ltd is still far from over.

Although it has been many days since the first IPO, the story around Shandong's Limited by Share Ltd is still far from over.

On the evening of April 20th, the China Securities Regulatory Commission issued a notice to reject the first application of Shu long clothing.

Such a result is undoubtedly a "fatal injury" to the sulang clothing, which is full of enthusiasm for listing.

To this evening, on the evening of April 20th, the China Securities Regulatory Commission issued a notice to reject the first application of Shu long clothing.

Such a result is undoubtedly a "fatal injury" to the sulang clothing, which is full of enthusiasm for listing.

To this day, the real reason for the IPO has not been clearly explained to the SFC under the SFC.

And on the day of issuing the prospectus, the media had publicly questioned the social insurance of employees who owed their employees.

At this time

But whether this is the root cause of its IPO is still unknown.

However, it is surprising that in April 21st, Yantai officials had explained the participation of Su Lang in social insurance.

Obviously, such a move is easier to capture information for the outside world.

But after the official intervention, our doubts have not disappeared, but we have found that there are more and more things on it.

Obviously, for Shu Lang dress, the IPO trip left to the outside world seems to be nothing more than play.

Officials and enterprises: who is laying the Oolong?

In April 21st, the Bureau of personnel, labor and social security of Yantai economic and Technological Development Zone held a press conference on the social insurance situation of sulang clothing.

At that time, the time node was only a day away from IPO.

Although the official did not state the intention of the move, its clarification and public relations were revealed.

At the news conference on that day, Song Dexin, deputy director of the Bureau of personnel and labor and social security of Yantai economic and Technological Development Zone, said

As a company controlled by Wu Jianmin and Mou Cailian, two people held 91.67% of their shares directly before the application was issued. After issuing 24 million shares, they still held 68.26% of the company's shares indirectly, and the book wealth would exceed 500 million yuan.

However, the day after its issuance of the prospectus, the media questioned its arrears of social security and provident fund.

According to the prospectus, there was a delay in paying social insurance premiums.

It is easy to see the contradiction between the prospectus and the official expression of the Yantai economic and Technological Development Zone. It is not difficult to find the contradiction between the two: since Su Lang clothing is described as a company that strictly abide by labor laws and regulations, initiatively signs labor contracts with employees, and pays social insurance premiums, then what kind of law-abiding action is it not timely to pay social insurance?

At the official press conference in Yantai in April 21st, he was also regarded as a private enterprise from small to large, from weak to strong, and gradually growing up.

In the course of the growth of enterprises, the authorities are also concerned about the difficulties that enterprises are facing at the moment.

According to the press conference, when the financial crisis raged in 2008, the Yantai development zone had introduced a series of policy of reducing burdens in order to support enterprises to tide over the difficulties. In addition to allowing enterprises to apply for five insurances, the four other insurance except pension insurance can reduce the proportion of contributions, while giving social security, jobs and training subsidies to difficult enterprises.

In accordance with the relevant provisions, Shu Lang clothing has also enjoyed a series of burden reduction policies.

However, at the same time, the net profit of 2008's 2010 profit reached 11 million 740 thousand, 26 million 150 thousand and 52 million 40 thousand respectively, and the profit growth rate even exceeded 100%.

And what we need to ask is, what kind of confusion is there between the official description of enterprises' difficulties, tight funds and the high profit growth in the same period disclosed by sulang's clothing prospectus?

Who is lying in the face of official and business? If it is an official lie, then the question of collusion and collusion between officials and enterprises behind it is more shocking and tangled to the public?

Sweatshop OR college cemetery?

In fact, social insurance and provident fund are only one side of the many problems surrounding Shu Lang's clothing.

In April 18th, 19 and April 18th, we found that the identity of the company inside the staff was far less than that of its employees outside the market.

"In addition to the production line workers, other overtime work is usually voluntary labor, when orders are many, and even overtime to 1 a.m., and no overtime pay, no work meals, no shuttle bus, second days, 8 o'clock still work as usual."

A former employee who resigned from Shu Lang's clothing for 1 years said that the company's internal connections were complex and the characteristics of family management were very obvious.

From this, he even thought that the most important thing in the company is interpersonal relationship, followed by the ability to work.

"There are at least 4 days in a week to work overtime, and the wages are not high enough."

In the factory of Shu Lang clothing located in Wuzhishan Road, Yantai Development Zone, a line operator who entered the company 2 years ago told the newspaper.

At the same time, he also told the newspaper that the company did pay for a part of employees who had not paid insurance for a long time, but the fund was only paid in May last year.

This newspaper visited Baidu post bar and the local forum in Yantai, and found that most of the discussions on wages and salaries involved in the web stickers involving the clothing of Shu Lang occupied many of them. Among them, there was no lack of Web stickers comparing them to "sweatshops" and "University cemeteries".

Among them, a poster said that when he applied for the clothing of Shu Lang, he was assigned to the finished product warehouse of the company and had no salary at the beginning of his internship for a month.

There is no concept of time in the finished product library. It goes to work at 8 o'clock. It is usually 7 or 8 in the evening, sometimes it is normal at 11 in the evening.

The poster also said that when he was in good clothing, he would take 2 days off a day.

After a month's practice without salary, they enter the probation period, 900 yuan per month (academic degree, 800 Specialties), and pay 28 every month. It is good to send them on time, usually for 4, 5 days or even longer.

For the above statement, Yantai has contacted the relevant departments of Shu Lang during the newspaper, but has not received a positive reply.

However, this newspaper survey found that the ordinary staff of Shu long looked at the company's listing as much as Wu Jianmin, Mu Cai Lian and his management team, which seemed to be related to the company's advocacy publicity for listing.

"The company leaders have said many times that there will be a substantial increase in post market wages."

Many staff members of Shu Lang contacted by this newspaper said that the management of the company has frequently been listed on the public market in public, and the expectation of post marketing treatment has become a major reason for some employees to stay in Shu Lang.

However, after a cheer, how will the management of Shu Lang maintain the balance of the weak salary increase of employees?

High growth trap

It is not known how the IPO management team will heal the trauma caused by the application.

However, it is certain that after a series of problems are exposed to the public view, the follow-up work is still complicated.

How to make the public aware of the high growth it portrays is one of them.

In the prospectus, Shu Lang clothing has been described as a highly growing clothing company. Its sales revenue in 2008 - 2010 was 104 million, 149 million and 256 million respectively, the growth rate in 2009 was 43.69%, and the 2010 growth rate was 72.97%.

The net profit of 3 years reached 11 million 740 thousand, 26 million 150 thousand and 52 million 40 thousand respectively, the growth rate was 122.74% in 2009 and 99.01% in 2010.

But what is the authenticity of the company's high growth? After analyzing and comparing a series of financial indicators, this newspaper finds that a hidden trap is hidden behind its high growth.

This newspaper calculates the sales gross profit margin, inventory turnover days, accounts receivable turnover days, business cycle and other financial indicators in the recent 3 years, and the corresponding financial indicators in 2009 for the clothing companies of the 5 clothing companies listed in the small and medium sized boards, including the, the wedding bird, the seven wolves, the American barrack and the Kaiser stock. The reason for the selection in 2009 is that many of the doubtful points have been discovered because of the fact that the 2010 annual reports of the above-mentioned comparison companies have not yet been disclosed.

Inventory turnover days is an index to measure the turnover speed of enterprises. It can basically be understood as the average number of days that an enterprise needs to purchase raw materials to complete sales.

The stock turnover days of sulang clothing are 735 days, while the 5 Kaiser small and medium-sized garment enterprises are the highest in the stock market. This index is 202 days, the lowest is the American state dress, this index is only 97 days.

Shu Lang's clothing is 3.6 times to 7.6 times that of his colleagues.

That is to say, Shu long takes 735 days from purchasing raw materials to selling clothes, which takes two years.

"Clothing is a very seasonal fashion industry, so slow turnover speed is unreasonable."

This newspaper Financial researcher Qingping thinks.

The turnover days of accounts receivable (the turnover days of accounts receivable indicated that the average number of days from the completion of sales to the average amount of money recovery) had been over 60 days in the past three years, reaching 69 days in 2010, while the 5 counterparts were between 30 days and 47 days. The business cycle (the sum of the turnover days of inventory and the turnover days of accounts receivable) indicated that the average time for the enterprises to purchase raw materials to the money was 804 days, while 5 listed companies were between 128 and 249 days respectively.

Shu Lang is 3 times the highest figure in 5 companies.

Such a slow turnover rate should be very poor, but the gross profit margin of Shu Lang clothing in recent 3 years is over 60%, while the 5 listed counterparts are only between 37% and 51%.

On the whole, the operation efficiency of Shu Lang is very poor, but its performance is far ahead of peers. This is obviously an abnormal phenomenon.

The above questions are justified enough to make the outside world doubt about the authenticity of their financial data.

Perhaps the single event of IPO is not enough to change the overall layout of the domestic apparel industry.

But a series of questions also seem to mean that the next step in the capital market will not be as smooth as imagined.