The Red Dragonfly IPO Is Suspicious.

Arrive again

After the season, Zhejiang Red Dragonfly Footwear industry has entered the first trial list of the SFC IPO, following the listing of the wedding birds, AOKANG, and AOKANG.

But recently, a series of problems, such as product quality problems, insufficient capacity and fund-raising purposes, have been exposed frequently.

The Red Dragonfly shoe industry was established in 1995, with a registered capital of 350 million yuan, formerly known as Yongjia Red Dragonfly Footwear Co., Ltd., and the shareholding system was reformed in September 2007.

Public information shows that the Red Dragonfly Footwear industry has total assets of 1 billion 12 million and net assets of 223 million yuan.

The company is mainly engaged in the production and sale of leather products, clothing and shoe accessories. It has 3 production subsidiaries of Shanghai red dragonfly, Chongqing red dragonfly and Guangdong Zhaoqing red dragonfly, and has formed the annual production capacity of 10 million pairs of men's and women's leather shoes.

Product quality problems frequently exposed, sampling failed to become "soft rib".

Quality problems of Red Dragonfly products

According to the results of the first batch of leather shoes product quality supervision and spot checks conducted by the Shaanxi provincial quality and Technical Supervision Bureau in 2012, the 43 batches of the samples sampled from the survey showed that the rejection rate of the batches of the 56 batches of samples was 21%.

In this regard, the Red Dragonfly company after-sales service department said that it has never received complaints of unqualified quality.

Red Dragonfly Shaanxi branch said the company had completed the matter, but when asked about whether to recall the product, the staff said the matter was handled by the company's top managers, and they were not sure about the plan.

Children's clothing contains carcinogens.

At the beginning of April, the quality inspection bureau of the State General Administration of quality supervision and Quarantine (QSIQ) organized the spot checks of children and infant clothing products. The results showed that the passing rate of children and infant clothing products was 87%, including the 5 long sleeved shirts of Wenzhou Red Dragonfly children's products Co., Ltd., including 5 products, which contained a resolvable carcinogenic aromatic amine dye.

It is understood that the decomposition of carcinogenic aromatic amine dye exceeded standard is known as hidden in clothing hidden killer, insoluble in water and colorless and tasteless, carcinogenic probability is large, "national textile product basic safety technical specification" clearly stipulates that carcinogenic aromatic amine dye is prohibited.

The red dragonfly is at the critical moment of IPO, but has been exposed to the quality crisis frequently. It has added a huge obstacle to its IPO listing.

Insufficient capacity to raise funds

For what?

The announcement shows that red dragonfly intends to issue 80 million shares in the initial public offering of A shares (tentatively) and raise funds to invest in marketing channel construction projects and information system construction projects.

It is worth mentioning that the company's products sell well, but the company does not seem to intend to use IPO to raise funds to expand production capacity.

Nevertheless, the Red Dragonfly still faces the problem of insufficient capacity.

From the specific capacity data, the company's five-star factory has 8 adhesive shoes production lines, the design scale is 2 million 200 thousand pairs, but the actual output in 2010 and 2011 were 2 million 401 thousand pairs and 2 million 408 thousand pairs, exceeding 9.1% to 9.5%.

However, the company has no plans to expand its capacity in this project.

A clothing and textile analyst of a brokerage firm in Shanghai told reporters that the Red Dragonfly belongs to the second tier brand in China. Its popularity is not bad, but it is not as good as the listed AOKANG shoe industry.