Behind The Downturn Of Executives Of Listed Textile Companies

Compared with the fourth quarter of last year, Textile and clothing The number of executives of listed companies has been reduced from 14 to 8 this year. If the executives of listed companies increase or hold their own stocks in a single quarter, or there are occasional factors, if they adjust the positions in the same direction for two consecutive quarters, they will show the consistency of the executives' opinions on their stocks. Such a company can basically reflect the fundamental change and has the necessity of key research.

Since the beginning of this year, the market has risen and suppressed, rising 4.84%, but its amplitude is as high as 15.72%. The ups and downs of A shares further test the patience of executives of listed companies. The author noted that the number of Listed Companies in the textile and garment and chemical fiber sector was reduced from 14 in the fourth quarter of last year to 8 in the first quarter of this year, indicating that there has been a "ebb tide" sign for executives.

Despite the weakening of executives' cash in the listed companies, the selling of executives has always been regarded as a "bad omen" by investors. Many executives of listed companies said that some reduction is really not optimistic about the company, but a lot of reduction is just a normal cash act. "Many executives are also wage earners. There is nothing wrong with selling stocks to earn money". For this argument, securities analysts disagree seriously, saying that these shares are part of the company's incentive system, and executives need to insist on holding them.

　　 Top management cash flow reduction

Data show that as of April 10th, this year, the Shanghai and Shenzhen two cities, a total of 394 listed companies executives in the two market share trading, the cumulative net number of shares sold 699 million shares, reducing the reference value of 10 billion 516 million yuan. Among them, 165 listed companies were held by senior executives, accounting for 41.88%, 211 of the listed companies were sold by executives, accounting for 53.55%, while the remaining 18 stock executives had a flat share, accounting for 4.57%.

Compared with the fourth quarter of last year, the strength of listed company executives has weakened. Data show that from October 1, 2011 to December 31st, there were 490 listed company executives' shareholding movements in two cities, and 844 million stocks were reduced. The amount of cash in the stock market reached 14 billion 451 million yuan, and the level of executive cash will be basically the same as that in the previous quarter. In 2012, the stock exchange of executives of listed companies was significantly reduced, and the scale of reduction was also greatly reduced, from 14 billion 451 million yuan in the fourth quarter of last year to 3 billion 935 million yuan, a decrease of 37.42%. From the point of view of the reduction of companies, there were 314 listed companies accounting for 64.08% of the fourth quarter last year to sell a lot of their stocks, and this year, the proportion of companies who reduce their holdings has dropped by 10 percentage points.

stay Textile and clothing And chemical fiber industry, executives of listed companies also brake on the reduction. Statistics show that this year, a total of 15 textile and garment and chemical fiber listed company executives shareholding changes, executives reduced 23 million 408 thousand and 900 shares, the amount of cash amounted to 147 million 736 thousand and 100 yuan; and last year's fourth quarter, 19 companies overestimated the sale of their own stocks, the cumulative holdings of 12 million 2 thousand and 900 shares, the amount of cash amounted to 161 million 664 thousand yuan. From this data, the size of executive cash in the market has decreased.

In addition, from the number of listed companies holding their own shares, executives can see that executives in this industry have already stepped on the brakes. In the fourth quarter of last year, 14 listed companies, accounting for 73.68% of the listed companies, sold their own stocks, and this year, 8 executives took the "bag for safety" and sold their own stocks at a high price, accounting for 53.33%.

　　 5 executives continued to shift positions in the same two seasons.

If the executives of listed companies increase or hold their own stocks in a single quarter, or there are occasional factors, if they adjust the positions in the same direction for two consecutive quarters, they will show the consistency of the executives' opinions on their stocks. Such a company can basically reflect the fundamental change and has the necessity of key research.

By comparing the data of two quarters, the author found that in the textile and clothing and chemical fiber industry, three executives continued to sell their stocks for two quarters, while two executives continued to increase their holdings for two quarters.

　　 Xia Ke environmental protection: all the quilt covers after the increase.

In the fourth quarter of last year, 4 executives of the company increased their holdings of 5 million 550 thousand and 900 shares of their own shares, accounting for 3.07% of the turnover, and 54 million 370 thousand and 300 yuan of total market capitalization. This year, the company executives adjusted their stock positions for the 9 time, totaling 10 million 480 thousand and 800 shares of their own shares, accounting for 5.81% of the turnover, and 89 million 507 thousand and 600 yuan in total market capitalization. This year, the stock has fallen by 0.49%, with a total turnover of 113.26%. Obviously, executives are increasing their holdings.

The unit disclosed its performance bulletin in February 29th: earnings per share in 2011 were 0.11 yuan, net assets per share was 3.07 yuan, net assets yield was 3.57%, operating income was 1 billion 857 million yuan, an increase of 19.94% over the same period last year, and net profit was 24 million 249 thousand and 900 yuan, an increase of 15.90% over the same period last year. It can be seen that the steady rise of performance has become a major motivation for executives to increase their holdings.

　 Chuan Hua shares: fast increase and fast float.

In the fourth quarter of last year, 1 executives of the company increased their holdings of 2 million 876 thousand and 400 shares of their own shares, accounting for 0.75% of the turnover, and 19 million 994 thousand and 700 yuan of total market capitalization. This year, the company executives adjusted their stock positions for the 9 time, totaling 2 million 13 thousand and 200 shares of their own shares, accounting for 0.53% of the turnover, and 13 million 205 thousand and 600 yuan in total market capitalization. Since the beginning of this year, the stock has gained 12.32% and the turnover has reached 92.71%. Obviously, senior executives' holdings have achieved fast floating accounts.

The company's main revenue grew 26.88% in 2011, but its net profit increased by only 5.03% over the same period last year. The net cash flow generated by business activities was -1.59 billion yuan, down 49.28% from the same period last year. We can see that the company executives' holdings have the intention of stabilizing investor confidence.

　　 Jiangnan high fiber High and low

In the fourth quarter of last year, the company executives Sheng Dong Sheng sold their own stocks for the 5 time, accumulatively reduced 720 thousand and 600 shares, the number of changes accounted for 0.21% of the circulation shares, and the total market value reduction amounted to 5 million 965 thousand yuan.

This year, Zhu Minglai, the senior manager of the company, adjusted the stock positions in from March 5th to 9th to reduce 720 thousand and 600 shares of its own shares. The number of changes in the shares was 0.01% of the shares in circulation, and the total value of its holdings was 5 million 965 thousand yuan. Since the beginning of this year, the stock has gained 19.22% and the turnover has reached 39.59%. Obviously, the rise in share prices has made executives feel motivated and realized cash in the high price of stocks.

　　 Yi Ke Technology: lost in the growth of high performance

In the fourth quarter of last year, the company's 3 executives and two people reduced their holdings. One person increased their holdings and accumulated 145 thousand and 400 shares. The number of changes accounted for 0.08% of the total shares, and the total value of the reduction was 2 million 270 thousand and 900 yuan. This year, Ma Ma Wei, the top executive of the company, adjusted its stock positions for the 1 time, totally reducing 300 shares of its own shares and increasing its total market value by 4 thousand yuan. Since the beginning of this year, the stock has gained 14.71% and the turnover has reached 125.07%. The company issued a performance bulletin in February 29th: earnings per share in 2011 were 0.09 yuan, operating income was 427 million yuan, an increase of 25.75% over the same period last year, and net profit was 17 million 255 thousand and 400 yuan, an increase of 75.02% over the same period last year. It can be seen that the growth of performance has failed to increase the confidence of executives, but their confidence has gradually decreased.

　 Cash Wars

Facing the ups and downs of the stock market and the rise and fall of the book wealth, it is obviously very difficult for the executives of listed companies to resist this temptation in front of tens of millions of Yuan's huge fortune. But as the backbone of a company, is there any mistake in selling its own stock?

"Executives are not big shareholders, they are only working part-time. Are there any mistakes in selling stocks to earn money? We have no obligation to stick to stocks." For executives' motivation to reduce their holdings, a senior executive of a listed company who did not want to be named told the author that "executive reduction does not mean that they are not optimistic about the company, or are unwilling to do their best to manage it, but simply to convert the stock into cash."

A brokerage analyst said that at present, the biggest motivation for executives of listed companies to reduce their holdings is that the company's share price is difficult to upgrade, and the performance of Listed Companies in the first quarter of this year is unable to keep up with the stock price. Executives of listed companies have no reason to rely on cash to improve their lives.

The author believes that no matter whether executives should cash in, it is necessary for executives to reduce the volatility of stock prices. From this point of view, executives' cash in listed companies should be relaxed. At the same time, regulators should also legally constrain and regulate the behavior of executives of listed companies. For example, the "capital gains tax" can be imposed on the sale of restricted shares, or by modifying the company law, which stipulates that the amount of shares transferred by executives of a listed company can not exceed 10% of the total held.