Textile And Garment Enterprises Are Facing A Hidden Danger Of Going Public.

"The best mode is to outsource production, turn enterprises into light assets companies, control their own marketing channels and build outlets, and increase the proportion of direct investment."

Wang Sanshou, executive director of handing consulting, suggested that the listed textile and garment enterprises should pay close attention to their own business profit models.

Among them, the importance of direct store construction is considered to be more necessary for listing.

Faced with the SFC's "April 20th meeting" in April 20th, Shandong's clothing and clothing Limited by Share Ltd has been exposed for many years to deal with social insurance and pay provident fund for most employees.

Although the company has not yet publicly responded to the matter, it has already indicated that there has been a delay in paying social insurance premiums in its initial prospectus, and has promised to pay back.

Single cause is not enough to change its overall listing pattern.

However, a series of successive events that led to the failure of the company to pay social insurance and Semir's suspected tax evasion and Mona hosiery industry have been foreshadowed: the listing process of Chinese textile and garment enterprises is not as smooth as expected.

In the wake of these events, more than 100 textile and garment enterprises waiting to be listed are feeling uneasy: are the enterprises fully in line with the issuing conditions?

Is there any hidden danger?

Ignorance and harmony

about

Internal control of enterprises such as taxation, employment and related pactions

There are different opinions on the securities dealers who do not want to be named. He pointed out: part of the textile and garment enterprises are not guided by professional institutions. All listed companies have the post of "Dong Mi". Many of them have experience in investment banking, and have a thorough understanding of the listing of enterprises.

However, in order to rush to market, some companies chose to play the fool.

The Mona socks industry in Yiwu, Zhejiang, has always hoped to be able to compete in the capital market with fellow townsfolk, but not twice.

In 2008, the first application was temporarily suspended due to capital market IPO, and the two application was rejected by the SFC in April 2010.

Reporters call monk company executive department responsible person, the responsible person said the company has now replaced the new secretaries, and the company temporarily suspended the listing application, nor specifically for listing to continue to do related restructuring.

The reason for the failure to pass the listing examination was that the analysis institutions were guessing that the assets and liabilities ratio was too high and the risk of offering and selling was the reason. But the responsible person said that the specific reason was not clear. Many companies that were rejected every year were normal, and the company is now concentrating on its daily operation.

A sponsor representative of a investment bank told reporters that the enterprises that failed to pass the meeting usually had three outcomes: the first outcome was to start the "big shuffle", to replace the key personnel and institutions responsible for the listing work, and to redeclare them; the second outcome was to sort out the problems of the enterprises themselves, to carry out rectification, and to report again after the completion of the rectification; the third outcome, the enterprises completely abandon the idea of listing, and no longer apply for listing, or turn to the overseas listing path.

Direct operation and brand: the two magic weapons for customs clearance

Wang Sanshou CEO told reporters that at present, textile enterprises with no outstanding performance and profit pattern are hardly listed at all, and many garment companies applying for listing are facing various obstacles.

The main obstacle for clothing enterprises to apply for listing is from the marketing network management. The SFC has been increasingly strict in the management of chain enterprises' channel management.

"Many garment enterprises first have problems in the management of negotiable instruments. There is a discrepancy between invoices and taxes. There are also false invoices and false reports for enterprises to meet the requirements of listing."

Wang Sanshou said, "some clothing enterprises are mainly marketing channels, and the franchisees are mostly self-employed. The operation level of the self-employed and the difficulty of the management of the enterprises will be questioned."

The listed companies are mainly concentrating on the expansion of production capacity and marketing network construction. Wang San Shou describes the situation at the moment: after many textile and garment enterprises have gone public, the terminal channel has expanded too fast and the marketing network has expanded. However, because of the low efficiency of single store and the decline in average income, it has raised questions about whether the investment fund has fully played its role.

"In addition, there are a number of textile and garment enterprises which are fully outsourced and marketing channels are outsourced. It is a slim prospect of listing, and outsourcing of production and channels, and even the use of investment funds can not be established. There is no need for listing."

Wang Sanshou said, "it is not a big hope that companies who are solely engaged in textile and garment production without their own marketing channels will be listed."

"The best mode is to outsource production, turn enterprises into light assets companies, control their own marketing channels and build outlets, and increase the proportion of direct investment."

Wang Sanshou suggested that the textile and garment enterprises ready to go on the market should pay close attention to their own business profit models.

Among them, the importance of direct store construction is considered to be more necessary for listing.

We can also see some hints from the trend of the 21.15 clothing companies (-0.05, -0.24%) and Kaiser shares (20.67, -0.33, -1.57%) that have recently been listed.

Hinur wants to use the listing financing to speed up the construction of Direct stores. In the prospectus of the company, the company will invest 540 million yuan in marketing network construction projects, and build flagship stores and 46 Direct stores.

It is estimated that the remaining 37 outlets will be completed in 2011.

Kaiser's initial fund-raising plan adds 23 self marketing network points, and its expansion will also be dominated by self purchase stores.

In addition, another important factor affecting the listing is the brand influence of the enterprise.

"OEM enterprises are hard to get recognition in the capital market."

An investment bank sponsor who once ran a listed textile and garment enterprise said, "personally, when choosing a project for the first time to contact an enterprise, the key is to see the brand and performance, focusing on the influence of the brand and the consumer group."

Often choose the brand influence, the high-end high-end market oriented enterprises continue to contact.