Clothing Enterprises, Good News Birds, Less Cash Holdings, Suspected Paving The Way For Additional Issuance

The founder, shareholders and executives of corporate news birds began to increase their holdings on the eve of their private placement.

In September 7th, the bird announced that Wu Zhize, one of the founders of the company, was holding 347 thousand and 800 shares.

In December 2011, the company executives also increased their holdings in the two tier market.

It is worth noting that before that, three of the five founders of the company resigned from the company and continued to reduce their shares, while the company's largest shareholder, the news Bird Group Limited (hereinafter referred to as the "news bird group") and the company executives were also holding down the company's shares.

Some market participants said that Wu Zhize, the founder of the company, was overweight in his personal status, while the news bird group and the other four founders did not increase their holdings, which means that the five founders of the company had great differences in their holdings, which is not good news for the company's future prospects.

Founder, executives intensive cash holdings

"The founder and executive of the news bird bird concentrated their holdings of shares before 2012, and recently began to increase their holdings."

One investor complained to reporters.

The birds in the mouth of these investors are domestic.

A listed company in the industry landed in the small and medium-sized board market in August 2007. Its main business is suits, shirts and other men's series.

Production and sales of products.

Before the company IPO, the total share capital of the wedding bird was 72 million shares. Among them, Wu Zhize, Wu Zhensheng, Chen Zhangyin, Wu Wenzhong and Ye Qinglai controlled the news bird group holding 65% of the company's shares.

The above five sponsors held 32%, 20%, 20%, 20%, 8% of the news bird group respectively.

After the company landed in the A share market, the total share capital of the company increased to 96 million shares.

The news bird group holds 46 million 800 thousand shares of the company, accounting for 48.75% of the total share capital.

Wu Zhize, Wu Zhensheng, Chen Zhangyin, Wu Wenzhong and Ye Qinglai actually hold 27.975%, 15.900%, 13.425%, 13.425%, 4.275% of the shares of the company directly and indirectly, and the lifting date of the shares is August 16, 2010.

At the same time, the positions of the five people in the company are directors, vice chairmen, vice chairmen, chairmen and directors of the board of supervisors respectively.

After the date of the lifting of the ban, the founder and founder of the news bird group could not wait to reduce their shares.

From August 31, 2010 to September 17, 2010, the news bird group held a total of 12 million 506 thousand and 500 shares of the company, which accounted for 4.26% of the total shares of the company through the centralized trading and bulk trading of the exchange. The shareholding ratio was 41.42% (due to the completion of the company's 2009 first and the first exercise period in 2010, which resulted in a 41.42% stake in the company.

) to 37.17% and cash 288 million yuan.

From October 13, 2010 to November 17, 2011, the news bird group bought 8 million 850 thousand shares of the company's shares through block trading for the three time, and cash in 134 million yuan, and its shareholding ratio dropped to 35.29%.

For reasons of reduction, the news bird group expresses its own development needs.

The company's founder Ye Qinglai, Wu Zhize, Wu Zhensheng and others are holding shares with the company.

Reporter statistics, from the date of the lifting of the ban on the stock market to November 2011, Ye Qinglai, Wu Zhize, Wu Zhensheng and the company's largest shareholder reported a total of 822 million yuan.

In addition to major shareholders and founders continuously reducing shares of the company, the company executives have also become the main force to reduce the company's shares.

In December 2007, the company launched the first stock option incentive plan.

In June 11, 2010, 63 of the 120 incentive objects were allowed to exercise their rights to the company's board of directors, and the total exercise amount was 4 million 67 thousand and 500 shares with the exercise price of 12.20 yuan / share.

The shares of the exercised stock can actually be listed and circulated in December 21, 2010, and the amount of circulation is 25%.

On the second day of the lifting of the ban, that is, in December 22, 2010, executives of the company began to reduce shares of the company, and the company recorded 21 holdings on that day.

Among them, the company Fang Fang Fang wavelet reduced the shares held in the hands for the three time, and the cash flow was 4 million 44 thousand and 200 yuan.

For the company executives to reduce shares of the company, Fang Xiao once declared in public that the shares I reduced were because I needed to improve my life. Our house opposite the building sold 38 thousand yuan per square meter, and now about 2000000 yuan is really enough to buy a small house.

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Additional escort?

Just before the market worried that the company's founders, major shareholders and executives continued to reduce their shares, the good news bird executives and founders began to increase their holdings.

What is the reason behind the reduction and increase?

Reporters found that they had close ties with the company's public offering programme through the company executives and founders' time holdings.

In April 27, 2011, the good luck bird issued the motion on the company's A share issuance plan in 2011 (hereinafter referred to as the "additional scheme"), which shows that the total number of shares that the company will issue publicly will not exceed 50 million shares, and it is planned to raise no more than 1 billion 500 million yuan for marketing network optimization construction projects.

In June of 2011, as the company increased 10 shares from every 10 shares to all shareholders in capital reserve in 2010, the number of public issuance of the additional scheme was adjusted to 100 million shares.

In November 30, 2011, the application of the issuance scheme was conditionally approved by the SFC audit committee.

After the issuance of the SFC has just been approved by the SFC, the management of the company has begun to increase its share holdings.

In December 22, 2011, the directors, senior managers and some of the key personnel of the company reported buying 847 thousand and 700 shares of the company's stock in the Shenzhen stock exchange trading system through the Shanghai Jinsha Investment Limited (hereinafter referred to as "Shanghai gold gauze"). The average paction price was 11.61 yuan / share.

Statistics show that Wu Zhize, founder of the wedding bird, holds 73.5% stake in Shanghai gold yarn. The chairman and general manager of the company owns 10% stake in Shanghai gold yarn, and the remaining shares of Shanghai gold gauze are held by 11 executives such as Dong Fang Fang Fang and Xiao Fang.

In May 31, 2012, the China Securities Regulatory Commission officially launched the former permitted company's "issuance plan".

After the company's approval scheme was officially approved by the securities and Futures Commission, Wu Zhize, who previously held shares in the company, also began to increase shares in the company.

Wu Zhize bought 347 thousand and 600 shares of the company's stock through the Shenzhen stock exchange trading system on ~5 September 4, 2012, and the average price was 11.05 yuan / share.

"From the point of time when the company executives and founder Wu Zhize increased their shares, the company executives and founders increased their shareholdings to enhance the company's share price intention, which is obviously for the purpose of the additional escort."

An analyst from a textile industry in Shenzhen told reporters that because the company raised 1 billion 500 million yuan of funds and issued 100 million shares, the company had to raise enough funds to issue a price of 15 yuan per share, and the closing price of the company in September 12th was only 11.61 yuan / share, and there was still a certain distance from the 15 yuan. If the company's share price is less than 15 yuan in the validity period of the issuance, the company's issuance is very difficult. After all, no organization is willing to buy shares and then lose money.

A textile industry analyst who declined to be named said that although the company's senior management and founder Wu Zhize's stake in the company's shares is a clear intention for the company to issue additional convoys, I'm afraid it will be difficult to achieve better results.

"First of all, Wu Zhize, the founder of the company, is holding the company's shares in his personal capacity instead of holding shares through the news bird group."

The above analysts said that this means that the five founders of the company do not agree on the company's holdings.

"Secondly, from the total amount of money spent by executives and Wu Zhize's holdings, it is more symbolic."

The analyst further pointed out that Wu Zhize's use of capital raising funds is much less than that of the major shareholders, founders and executives of the company. Therefore, it is very difficult to increase the capital to raise the share price.