Listing "Lost"

In 2010, a number of garment enterprises such as Kaiser and Hinur went on the market, becoming a bright spot in the capital market.

But in 2011, Chinese clothing enterprises became the hardest hit areas for the application of A shares IPO.

According to statistics, this year, a total of 11 clothing enterprises IPO applications, 6 of which were not.

Focus on inventory turnover

Ping An Securities, an investment bank, believes that

Since 2010, the cost of clothing enterprises in China has risen substantially.

The rise of costs is reflected in many aspects: on the one hand, the emergence of "labor shortage" and the rise of wage and welfare leads to the rise of labor costs; on the other hand, the rise in the price of commercial rents and the increase in pport prices have led to the increase in the business cost of clothing enterprises; meanwhile, the rise in the price of water and electricity and other resources has led to the rise in manufacturing costs; besides, under the credit tightening policy, the financing costs of garment enterprises have also risen a lot.

In order to alleviate the pressure of rising costs, enterprises began to substantially increase the product sales price, which led to a large number of enterprises that had too much interest in gross profit margin and a large decline in inventory turnover.

Take the Wiseman dress as an example, its prospectus shows that 8 of the 9 raw materials of the company have increased substantially in the past year; meanwhile, the price of the brand women's clothing has increased by 10.9%.

The same is true of another Vigna S fashion.

However, the sharp rise in prices of the two enterprises led to a sharp decline in inventory turnover.

According to statistics, from 2008 to last year, the turnover rate of clothing in Wiseman was 4.4, 3.29 and 2.88 times. Meanwhile, the turnover rate of Vigna S's fashion stock was 2.23, 2.19 and 1.36 times.

In fact, in the other 4 garment enterprises (ladies' house, Li Rui, Shu Lang and nu chi) that IPO was denied this year, the remaining 2 of the last year's inventory turnover levels declined to varying degrees except that of leper and NASH. The turnover rate of ladies' houses and sulang inventories dropped to 1 and 0.49 times respectively.

This is far from the average stock turnover rate of the clothing companies that have been listed for about 2.4 times.

Facts have proved that the rapid decline of inventory turnover has a great impact on the stable operation of enterprises.

After the sharp rise in prices last year, Vigna S's main business gross margin increased by 70%, business revenue increased by 56%, output increased by 28%, sales cost increased by 125%, but sales decreased by 7%.

Although the company's profits and revenues have maintained growth, the output and

Looking at continued profitability

For this garment enterprise IPO is not, Kate Capital Partners and President Xu Hao think, "more is the enterprise itself in profitability, competitiveness and future development trend, there are some problems."

At present, the competition in China's garment industry is very fierce, and the industry entry threshold is also low. Therefore, whether or not it has strong core competitiveness determines the listing prospect of clothing enterprises to a certain extent.

Haitong Securities, an investment bank, suggested that the R & D design and marketing channel construction is the two core competitiveness of clothing enterprises. To be listed clothing enterprises should increase investment in R & D design, on the other hand, it should increase the average sales volume and sales ability of single stores (sales outlets).

Take Li Rui dress as an example, one of the main reasons for its IPO is that it only provides OEM business, lacks the capability of independent R & D and design, and its core competitiveness is difficult to sustain. In addition, it also involves deep problems such as insufficient motivation for listing and financing, and serious dependence of single market customers.

Judging from the ability to respond quickly to international orders, the average delivery date of Li Rui is 30 days to 90 days, which is inferior to the listed clothing companies such as Jin Feida and Jiangsu Sanyou.

R & D design ability is related to the product positioning and fashion catching ability of garment enterprises, which is related to the development potential and sales potential of enterprises. Therefore, it is necessary to increase R & D investment for listed apparel companies.

In addition, garment enterprises should balance the speed and the benefit in the process of building marketing channels.

Taking Shu Lang clothing as an example, its prospectus (pre disclosure) shows that the marketing channel of the company has expanded rapidly during the reporting period. From the end of 2008 to the end of 2010, the number of outlets has increased from 183 to 492, and the annual compound growth rate has reached 63.97%. But at the same time, the capital chain of the company has also been unusually tight. The net cash flow generated by business activities in 2010 was -3998.27 million, and the debt rate at the end of 2010 was 72.78%.

The rapid construction of the channel leads to the tight chain of funds, which indicates that the management capability of the company needs to be improved and the profitability of the single store still needs to be improved.

As a matter of fact, judging from the reasons and feedback that the SFC issued in 2010, the regulatory authorities emphasized the continuous profitability of the companies on the main board of Shanghai Stock Exchange and the small and medium-sized board enterprises in Shenzhen and Shenzhen stock markets, while the gem Committee attached importance to the growth of enterprises while paying attention to continuous profits.

It will be more stringent after review.

Li Jiaqing, managing director of Lenovo investment, believes that the continuity of authenticity, standardization and profitability of any retailing chain of consumer brands will be more and more concerned. The barriers and barriers to listing will also be higher and higher. The requirements of regulators in this regard are much higher than those of Hongkong and the United States. IPO

Li Jiaqing has a lot of interest in the field of clothing. He has invested in branded women's clothes, La Natsu Bell and Amoy women's clothing seven.

It has been reported that in April this year and June, the two sponsor representatives' training sessions focused on the chain store businesses. For the chain operators with more distributors and more distractions, not only the top 5 customers were concerned, but also more than 80% customers should be investigated in the due diligence by means of information system.

For franchisees of such enterprises, sponsor agencies are required to check every franchisee as much as possible and pay close attention to their sustainability.

In fact, due to the issue of the authenticity of revenue recognition, the regulatory authorities strictly enforce the audit requirements for the quasi IPO enterprises adopting the two modes.

If the enterprise adopts the way of joining, the issuing Committee requests to check and report the financial indicators of the three year reporting period and the revenue and net profit of each franchisee; if the distribution mode is adopted, it needs to provide the three year reporting period and the details of each dealer's terminal customers.

As most garment enterprises involve affiliate or distribution mode, the new standards mentioned above are no more than an industrial "earthquake".

At the same time, the listed companies are concentrating on the expansion of production capacity and marketing network construction. After many 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 stores and the decline in average income, it has raised questions about whether the investment fund has fully played its role.

In addition, the number of garment enterprises that have been denied is between several hundred million and one billion, and the profits are mostly tens of millions of yuan, and the scale is not very large.

Li Jiaqing believes that before the listing of clothing brands, the ideal state is: first, there are hundreds of millions or 1 billion of sales before and after the listing, and there are billions of profits. Secondly, the network coverage is wide enough, which is a relatively national brand. Thirdly, it has a long history to see how the internal operation efficiency has been improved step by step.

"It is more practical for such clothing companies to go public."

Therefore, in a VC view, whether these garment enterprises are listed is not the SFC's threshold for such enterprises to go public, but it should be "a more rigorous examination of the possible problems in the chain operation mode".

Why are they listed on the stock market?

In fact, these 6 garment enterprises are not from the equity.

Li Jiaqing did not agree with that.

He thinks that the key reason for centralized listing is that the garment industry is trillions of market in China, but the real brand size is still very small. But in the next 3-5 years, the industry will enter a very fast growth stage, and will concentrate on big enterprises. Therefore, for many small and medium-sized garment enterprises, these years are of great importance. If there is not enough resources, including funds, they are likely to be eliminated.

In a long period of time, CEO Yang Tao, a Hangzhou woman's brand, was worried about the market, so she was not active.

In May 2007, BELLE international listed on the main board of Hongkong, financing nearly HK $8 billion 700 million. After that, it quickly launched mergers and acquisitions in the industry. Now it is a big Mac in the field of women's shoes.

In August 2008, the United States and costumes landed at the Shenzhen Stock Exchange, raising nearly 1 billion 400 million yuan, which is also the leader in the field of domestic casual wear.

These two things are very stimulating to Yang Tao, and he also changed his view of listing. "If the brands with similar size on us first went public, they would have a magic weapon. If it struck me at that time, I would be more passive."

And AOKANG founder Wang Zhentao also told the media before that, no morning city is the important reason why Wenzhou shoe enterprises are rapidly catching up with a number of Fujian shoe companies listed by Anta and so on. Therefore, he is blunt, for AOKANG, "do not list, do not improve the specification is waiting for death."

It takes a long time to build a brand. In this process, continuous financial support is a prerequisite.

When brand clothing enterprises are combined with capital market, a steady stream of high-quality capital can stimulate the rapid development of brand with larger growth space. As a result, a number of brands with international competitiveness and brand resources that help enterprises to grasp their advantages are produced in China.

In addition, through the capital market financing process, listed companies can quickly upgrade their own industries and form competitive advantages.

If the number of listed companies on this road increases, it will also enhance the competitiveness of the entire garment industry in China.

However, a series of events show that the road of Chinese garment enterprises listing is not smooth.

In addition to the examination and approval of listed companies, many enterprises found that after their hard and successful IPO, their harvest was not as big as they expected.

In fact, the listing is not the end of the development of enterprises, but just a "weapon" on the way to enterprises.

With the increase of macroeconomic uncertainties and the continuous rise of all kinds of costs, coupled with the "contrast effect" of similar listed companies, the difficulty of IPO entry in the two or three line clothing enterprises will be more and more difficult.

However, the low passing rate did not affect this kind.