Listed Shoe Companies Accumulate Funds For Development And Improve Capital Structure

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Accumulate funds for development and improve capital structure

Many shoe companies have listed the legend of riches through listing: Anta in 2007 financing Hongkong exceeded HK $3 billion 500 million, later XTEP, 361 degrees respectively financing 2 billion 230 million, HK $2 billion, plus Hongxing Erke and other enterprises in Singapore, at the end of 2009, Quanzhou shoe enterprises total financing amounted to more than ten billion.

"PEAK sports" listed 420 million shares, HK $3.7 per share, chairman Xu Jingnan holds more than 61% of the shares, the family assets of more than 5 billion Hong Kong dollars.

After the success of the listing, the Ding family will accumulate wealth quickly, and the enterprise will get sustained development funds.

In recent years, the footwear industry has become increasingly competitive. The expansion of terminal channels, advertising input and new product development and design will not be supported without huge financial support.

The 361 degree financial report shows that in the 2006 to 2008 fiscal year before listing, the main way of corporate financing is bank loans and shareholder loans, including bank loans increased by 140 million yuan, loans to shareholders 147 million yuan, and asset liability ratio remained at around 70%.

After listing, the asset liability ratio of 361 degrees dropped to 38%, and the capital structure was greatly improved.

With the expansion of enterprise scale, operating capital is increasing year by year, and capital demand is increasing day by day.

Although the operating income in fiscal 361 fiscal year increased 12 times than that in fiscal year 2006, net profit has increased 56 times than that in fiscal year 2006, but the accumulation of internal surplus has been unable to meet the need of expansion in the 2006 fiscal year.

Listing is a shortcut for Jordan to break through its capital bottleneck and achieve leaping development.

Breaking the family system and turning to modern management

Through listing, improving the corporate governance structure and improving the modern management level is the urgent demand of many family shoe enterprises.

Before Ding Zhizhong came to power, Anta's important management positions were basically held by family members. With the development of enterprises, family decisions had been "ineffective".

So Ding Zhizhong can change the governance structure, realize the institutionalization and standardization, and make clear the idea of the strategic layout and brand positioning of the enterprise.

Anta's management pformation ideas also set a good example for Jordan sports.

It is usually the combination of ownership and management right to make family businesses run by shoe companies. This is very important for the development of shoe enterprises at the beginning.

But when the enterprise develops to a certain scale, especially when the power is pferred to the second generation, if the family change is invariable, the management idea is often difficult to get out of the circle of family interests, and the enterprise lacks the motive force for further development.

The important significance of the listing of family shoe enterprises is not only to change the management mode, but also to solve historical problems, such as the definition of equity, and at the same time, improve the comprehensive level of enterprises with the help of the international capital market standard system and pparent financial disclosure and operation mechanism.

Enhance corporate visibility, attract talents and business

Listing and issuing stocks have strong brand communication effect.

The roadshow and prospectus before Jordan's listing is a thorough display of corporate image; the success of listing is the recognition of the capital market for the growth, market potential and development prospects of the enterprise. It is an honor in itself. The rise and fall of the company's stock makes investors do not have to pay no attention to the dynamics of the enterprise; the media reports on the movements of the listed companies, and the investigation and comment of the investment institutions and analysts, all attract the attention of investors, and virtually excavate the potential value of the enterprises.