Frequent Changes In Executives Of Textile And Apparel Listed Companies

Since April, Kaiser shares, China Textile shares and Shandong Ruyi have issued a notice of senior executives' turnover.

Xiangcai securities analyst said that good companies generally do not have particularly frequent core executives turnover.

The reporter called the Securities Department of the listed textile enterprises involved in the change of executives, and could not disclose any information other than "personal reasons".

Does change involve industry prospects?

According to the statistics of Wind, since January 1st this year, there have been 163 announcements of resignation of directors or independent directors, senior managers and supervisors of listed companies, while the same period of last year's listed companies issued only about 64 times, with an increase of more than 150%.

The change frequency of executives in textile and apparel listed companies is accelerating, which is consistent with the big environment.

The specific positions this year include vice president, secretaries, independent directors, financial controller, production director and so on.

In January 17, 2011, the board of supervisors of Huamao shares received the resignation report submitted by Mr. Hu Mengchun, the supervisor, and in January 28, 2011,

In February 13, 2011, Mr. Ding Li received a written resignation submitted by the board of supervisors of the company's shareholders. In February 14th, the board of directors of the Shanshan stock company received the resignation report of Mr. Nakabu Xiaoi, the director and general manager of the company.

In March 30, 2011,

In April 6, 2011, the board of directors of Shandong Ruyi company received the written resignation of Mr. Li Zhiwen, an independent director, and resigned as chairman of the board of audit of the board of directors. In April 20, 2011, the board of directors of Kaiser shares received a written resignation report from Mr. Peng Wei, the company's production director.

"Executive turnover is generally related to the treatment and talent development, and the relationship between the frequency of change and the industry environment is not well judged."

Guo Jin securities textile analyst said: "especially export enterprises this year's situation is not very optimistic, the tax rebate rate adjustment is very likely, the follow-up does not rule out the relevant business executives to look down on the prospects of the industry."

Xiangcai securities analyst said, did not pay special attention to the situation of frequent changes in the executives of the listed textile enterprises, the core executives of the textile and garment companies whose key research and coverage are relatively stable.

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At present, the frequency of the change of executives in the industry is reflected in the number of companies involved. However, there is no evidence that a company has obviously accelerated the change of executives in recent years.

During the interview, the director of the listed textile company, which did not change, said that the executive level of his company remained stable, and he did not want to comment on the changes in the company.

"Ordinary listed companies usually pay great attention to the cultivation of qualified professional managers, and some executive turnover should have little impact on the operation of the company."

Guo Jin securities textile analyst said: "even if there is an impact, the degree of impact depends on whether the senior executives belong to the core executives. The definition of core executives is relatively difficult, and it is not directly linked to the length of service."

Poor management and stock ownership become the focus of doubt

The reasons for the adjustment and turnover of executives of listed companies are not only personal development factors but also poor management and cash dividends.

According to the annual report of the listed textile enterprises, some companies that announced the change of executives this year do not have satisfactory expectations.

The main financial data of Kaiser shares show that in 2010, the main revenue was 375 million 560 thousand yuan, an increase of 18.68% over the same period last year, while the main revenue grew by 20.02% in 2009, and the main revenue began to slow down.

Compared with other clothing listed companies, the growth rate is also slightly weaker.

The company's net profit in 2010 was 63 million 420 thousand yuan, an increase of 8.63% over the same period last year, lower than the main revenue growth rate. The net profit of the semi annual report and the three quarterly report increased by 16.94% and 16.56% compared with the previous year. The annual report has slowed down significantly, which is lower than expected.

Shandong Ruyi 2010 operating income of 510 million yuan, an increase of 3.35% over the same period, attributable to shareholders of listed companies net profit of 44 million 905 thousand and 600 yuan, a year-on-year decline of 8.73%; basic earnings per share of 0.28 yuan, down 9.68% over the same period last year.

The results show that both the performance and the change of executives are causal.

After leaving office, there are two senior executives. One is to continue to hold other positions in the company, and the other is to seek another job.

When changing jobs and companies remain unchanged, they often leave the company for the sake of strategic adjustment. After leaving, one of the executives of a clothing listed company is sent to the financial equity investment company of the company as an important post.

Another reason why executives leave their company is much more concerned.

The company law of our country clearly stipulates that the shares pferred by directors, supervisors and senior managers of a company shall not exceed 25% of the total number of shares held by the company.

When executives are in office, considering the location of the company, because of the state laws and regulations, executives of listed companies will not reduce their holdings too much, so as not to draw too much speculation from the market.

When a senior executive leaves, only half a year is allowed.

The relevant regulations of the SFC stipulate that six months after the resignation of directors, supervisors and senior managers, the shares held by the company shall not be pferred.

In the market, there has been a big sell-off of stock after the executives leave. Regardless of whether the exit cash is really the driving force behind the change of executives, the frequent turnover of executives will inevitably cause investors' uneasiness. In a stock bar, netizens ask: Directors and supervisors have resigned from office, leaving the company's management to whom the masses are shareholders?

"If there is an equity and a better career development opportunity, why not?" a textile analyst of a brokerage said that the reasons for the turnover of the company's executives are different, in addition to the adjustment of the unified strategic layout of the company, most of which are the final choice after a comprehensive measure of the rights and interests of all aspects.

The reasons for the adjustment and turnover of executives of listed companies are not only personal development factors but also poor management and cash dividends.

According to the annual report of the listed textile enterprises, some companies that announced the change of executives this year do not have satisfactory expectations.

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The main financial data of Kaiser shares show that in 2010, the main revenue was 375 million 560 thousand yuan, an increase of 18.68% over the same period last year, while the main revenue grew by 20.02% in 2009, and the main revenue began to slow down.

Compared with other clothing listed companies, the growth rate is also slightly weaker.

The company's net profit in 2010 was 63 million 420 thousand yuan, an increase of 8.63% over the same period last year, lower than the main revenue growth rate. The net profit of the semi annual report and the three quarterly report increased by 16.94% and 16.56% compared with the previous year. The annual report has slowed down significantly, which is lower than expected.

Shandong Ruyi 2010 operating income of 510 million yuan, an increase of 3.35% over the same period, attributable to shareholders of listed companies net profit of 44 million 905 thousand and 600 yuan, a year-on-year decline of 8.73%; basic earnings per share of 0.28 yuan, down 9.68% over the same period last year.

The results show that both the performance and the change of executives are causal.

After leaving office, there are two senior executives. One is to continue to hold other positions in the company, and the other is to seek another job.

When changing jobs and companies remain unchanged, they often leave the company for the sake of strategic adjustment. After leaving, one of the executives of a clothing listed company is sent to the financial equity investment company of the company as an important post.

Another reason why executives leave their company is much more concerned.

The company law of our country clearly stipulates that the shares pferred by directors, supervisors and senior managers of a company shall not exceed 25% of the total number of shares held by the company.

When executives are in office, considering the location of the company, because of the state laws and regulations, executives of listed companies will not reduce their holdings too much, so as not to draw too much speculation from the market.

When a senior executive leaves, only half a year is allowed.

The relevant regulations of the SFC stipulate that six months after the resignation of directors, supervisors and senior managers, the shares held by the company shall not be pferred.

In the market, there has been a big sell-off of stock after the executives leave. Regardless of whether the exit cash is really the driving force behind the change of executives, the frequent turnover of executives will inevitably cause investors' uneasiness. In a stock bar, netizens ask: Directors and supervisors have resigned from office, leaving the company's management to whom the masses are shareholders?

"Why not go if there is equity and better career development opportunities?" a textile analyst of a brokerage firm said that the reasons for the resignation of executives were different. In addition to the adjustment of the unified strategic layout of the company, most of them were the final choice after measuring the rights and interests of all sides.