Xingye Leather Listing Is Most Afraid Of "Green Door" Incident.

Xingye leather, the largest leather manufacturer in China, has passed IPO smoothly. If there is no accident, two or three months later, after 8 years of running marathon long run, Xingye leather will become the first domestic leather industry listed company.

Of course, this is only "if".

Before the official listing, there were many precedents for accidents. Only in Fujian listed companies, star network Ruijie had entered three out of three. Recently, there were cases of Guzheng Tang being questioned by the bear, and Jordan v. Jordan.

8 years marathon listing road twists and turns

Xingye leather predecessor was founded in 1992 in Jinjiang Anhai Xingye leather products factory, in November 2004, the company officially changed to Xingye Leather Co., Ltd., at present, the company has become China's largest supplier of leather facet material, the company's chairman and legal representative is Wu Huachun.

As early as 2005, Xingye leather had put forward the concept of listing, and its initial listing destination was Hongkong.

Wang Jingfeng, senior vice president of Zhongke investment and investment (Fund) management company, who has been familiar with Xingye leather and has successfully listed many companies, told the reporter that "in order to be listed, in 2006, Xingye leather specially established the audit department. When I was invited to be the chief auditor of the company, I was responsible for helping standardize the internal control system of enterprises."

According to the "three year plan" formulated by Xingye leather in 2006, Xingye leather was originally planned to be listed overseas in the first half of 2008.

But in March 2007, Xingye leather suddenly changed its target market to domestic market.

When explaining why the listing site was mutated, Wu Zuxiong, vice president and Secretary of the board of directors of Xingye leather, told reporters that when deciding to change the listing destination,

"For many people who are listed on the market in China, they sweat a lot. After all, there is no precedent.

In the domestic market, environmental protection is very important. It is estimated that many people will vote against it and do not support the expansion of leather industry. "

Wang Jingfeng said that because of environmental protection, Xingye leather listed on the road twists and turns.

As early as 2003, the Environmental Protection Administration issued the "Regulations on Environmental Protection Verification for listed enterprises and listed companies applying for refinancing", requiring the listed companies to carry out environmental protection verification.

When Xingyi leather completed the shareholding system reform and planned to launch a sprint to the domestic capital market for the first time, in January 9, 2008, the securities and Futures Commission issued the circular on the application documents for the production and operation company of heavy polluting industries. According to the document, the heavy pollution industry production and operation company applied for initial public offerings, the application documents should provide the verification opinions of the State Environmental Protection Administration. If the environmental protection verification opinions were not obtained, the application will not be accepted by the IPO.

According to this regulation, leather enterprises of Xingye leather belong to a series of strict environmental protection verification procedures when they apply for listing, which makes the listing of Xingye leather again.

Meanwhile, in October 2009, in the Fujian provincial environmental protection department's surprise inspection of the leather industry in the province, 92 of the 109 tanning enterprises in the province were found to have problems of pollution control. For this reason, Fujian ordered all polluting enterprises to be closed or deadline for rectification.

In August 2010, the Fujian provincial government promulgated the policy on strengthening leather industry pollution prevention and control, which is called the most stringent leather control policy in China.

In January 2011, Fujian once again issued a more stringent "2011-2015 year total reduction scheme for major pollutants in the leather industry". The string of environmental protection across the leather industry is getting tighter and tighter.

In the face of the "magic spell" worn on the head one after another, Xingye leather is putting forward the goal of "green leather, hundred years of business" and "creating China's first brand of green leather", while increasing investment in environmental protection.

Xingye leather prospectus shows that in 2008, 2009, 2010 and 2011 1-6, the cost of environmental protection was 4 million 97 thousand and 900 yuan, 4 million 550 thousand and 800 yuan, 8 million 302 thousand and 200 yuan and 5 million 489 thousand and 400 yuan respectively.

During the reporting period, the proportion of environmental protection expenses to current income was 0.50%, 0.56%, 0.80% and 0.90% respectively, and the unit income and environmental protection treatment fee increased year by year.

After years of efforts, the company has finally successfully developed an environmental recycling economic governance mode of "five water diversion and separation, recycling technology, sewage treatment technology combined with AO technology, membrane treatment and reuse of large-scale production technology" to fill the domestic leather industry pollution control.

Today, the systematization of leather cleaner production technology has been promoted throughout the industry.

"A CEO CEO must also be a chief environmental officer, CEO, both indispensable."

Wu Huachun, chairman of the board, has already tasted the sweetness of environmental protection investment. After the new technology is used to realize the reuse of secondary water, the sewage treatment cost per ton is reduced from around 7 yuan to about 5 yuan. "For enterprises, environmental protection is not cost, but investment and efficiency."

It is understood that with the leading technology of environmental protection, the competitiveness of Xingye leather is getting stronger and stronger. From 2009 to 2011, the company's business revenue rose from 820 million yuan to 1 billion 281 million yuan, and net profit jumped from 80 million yuan to 123 million yuan, becoming the real leather industry leader in China.

"Leather's rigid demand is great, and Xingye leather's efficiency is very good, just because of the inferior position of the industry, so the listing process is rather slow."

Wang Jingfeng said, Xingye leather is a marathon in capital market. If there is no good benefit to support, many enterprises will probably go bankrupt. "Through these years, the image of Xingye leather has gradually been recognized by the society, which basically meets the environmental requirements of listing."

In line with the environmental requirements of listed companies, does it mean that they can successfully issue shares on the stock market? I am afraid that is not so simple.

The negative impact of Zijin Mining last year has not been eliminated.

Leather industry because of the difficulty of pollution control, the impression has always been a headache for the large polluters.

The pollution of the leather industry is like that of the louse on the head. In this controversial industry, Xingye leather is suddenly coming into the market, and the company has once again become the focus of attention.

Wang Jingfeng said that enterprises like Xingye leather are all concerned by the outside world.

If you encounter the "green door" incident at this time, the listing will become very troublesome.

Therefore, we need to continue to work hard for environmental protection. Even if the environmental protection standard has been achieved in the past, there can be no slack in the future.

Otherwise, once someone else shakes up the enterprise's environmental protection failing to meet the standards, the road of listing will become bumpy and abnormal.

Whether environmental protection can pass through is like Damour's sword, which is hung on the head of Xingye leather.

"Imagine, which supplier is willing to hand over the order to any enterprise that may be faced with rectification at any time?" an industry spokesman, who declined to be named, said.

In February 27th, the Fujian provincial Environmental Protection Office recently announced the list of key pollution control sources in Fujian Province in 2012. 798 enterprises in Fujian were listed, of which 545 were national key monitoring enterprises.

Among the 545 national key monitoring enterprises, Xingye leather has been listed as a "key national wastewater monitoring enterprise". It has also been listed as a "national key enterprise of heavy metals" list, and has become a rare "double point" monitoring enterprise.

In this way, Xingye leather has become the "focus" object.

As the largest domestic cowhide manufacturer, Xingye leather is ready to expand its scale after the listing. The company has decided to apply for 60 million shares of the common stock of the renminbi, and will raise more than 600 million yuan. The stock raising proceeds will be used for two projects: first, 1 million 500 thousand new high-end leather finishing technology projects, with a total investment of 200 million; two is the annual processing of 1 million 200 thousand leather raw materials and 300 thousand blue wet skin items, with a total investment of 400 million yuan.

"Xingye leather has no way to turn around."

At present, a lot of Quanzhou leather enterprises have launched the listing plan. The investment of Xingye leather and the final outcome of its sprint capital market will be a weathervane for whether the traditional polluting enterprises such as leather can be listed successfully. Wang Jing Feng reminds us that "as a benchmark in the industry, we must continue to overcome the inherent shortcomings of the leather industry and continuously enhance the competitive edge of the enterprise, whether it is before or after the listing."