Market Speculation: 100 Round Pants Industry Intends To Buy Cross-Border Electricity Providers With 1 Billion 32 Million Yuan

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< p > recently, < a href= "http://sjfzxm.com/news/index_h.asp" > hundred circle trousers industry < /a > issued a notice that it intends to buy 100% stake in cross-border e-commerce global Tesco at a price of 1 billion 32 million yuan.

Affected by this announcement, from 17 to Thursday, only 33 million 340 thousand shares in the circulation market, this small cap stock has been trading for 6 consecutive days.

Is Tesco a life-saving straw for the industry? Is the speculation in the two market a rational behavior for investors? There are different opinions in the market.

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< p > hundred rounds of trousers industry preview shows that the company intends to issue shares and pay cash at a price of 1 billion 32 million yuan to acquire 100% stake in cross-border e-commerce global Tesco, paying 972 million yuan on stock consideration, paying 60 million yuan in cash, and issuing 67 million 972 thousand shares at 14.30 yuan / share. At the same time, it is planning to raise matching funds for security Grant No. 3 and Cinda Australian silver for 150 million yuan to cover the cash consideration of the paction, the related costs of the reorganization and the operational capital needed for the development of the business after the completion of the paction.

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< p > > a href= "http://sjfzxm.com/news/index_h.asp" > 100 round pants industry < /a > traditional business is the production and sale of trousers for men and women. The category covers all kinds of trousers, casual pants and jeans. The target market is mainly 234 line cities, targeting mainly 25-55 year old middle income group.

We won the 2010 annual Responsibility Award of China trousers industry, the first brand of China trousers Market, the excellent brand of China and many other titles.

As of December, there were 1640 stores in 13.

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< p > although the hundred round pants industry has been leveraging the capital market in 2011 with a view to have faster and better development space, but the company's "final results" in recent years have gone from bad to worse, and the post market performance has been declining year after year, which really disappointed investors.

In 2012, the company achieved revenues of 485 million yuan, down 0.31% from the same period last year, and realized net profit of 52 million 370 thousand yuan, down 23.78% compared to the same period last year.

In 2013, the company achieved 446 million yuan, down 8% compared with the same period last year, net profit 31 million 490 thousand yuan, down 40% compared with the same period last year.

Entering the 2014, the company's operation is even more stressful. A quarterly disclosure revealed that the net profit of 1-6 months in 2014 was 1032-1652 yuan (20 million 647 thousand and 800 yuan in the same period last year), a decrease of 20%-50% compared with the same period last year.

The company's performance change is due to the macroeconomic impact. The purchasing power of the consumer terminal continues to slump, which has adverse effects on the company's future performance. Labor costs and store rentals continue to rise, resulting in greater cost pressures, resulting in a decline in terminal profits; the development of e-commerce has a certain impact on offline sales network.

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< p > reporter noted that in recent years, the company's top ten tradable shareholders, no fund, social security and other institutions.

Insiders say that in recent years, the prosperity of textile and garment industry is far worse than before.

Under the influence of the weakening of internal and external demand, the prosperity of the garment industry has been downward after maintaining a smooth operation for a year.

Clothing enterprises are subject to rising raw material prices and labor costs, and the pressure on inventory growth is still difficult to alleviate.

The main reasons for the reluctance of the agencies are single proprietor battalion, lack of risk resistance and lack of motivation for growth.

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< p > hundred round pants industry also realized that endogenous growth alone has been unable to save the downward trend of performance. The company believes that cross-border electricity supplier pactions have shown a rapid development in recent years, so they start the issuance and purchase cross-border electricity providers in order to enhance the profitability of the company.

The company's acquisition of global Tesco focuses on the vertical e-commerce platform business of cross-border export and retail, and has a world-renowned cross-border B2C sales website in many vertical categories such as clothing and electronics.

Global Tesco products are sold in more than 200 countries and regions, including the United States, Canada and the United Kingdom.

The sales products are mainly clothing clothing, 3C electronic products and so on.

The company believes that this not only conforms to the current product positioning of the industry, but also makes use of the advantages of universal Tesco in the electronic retail business, integrating its high-quality Internet genes such as B2C, big data operation, Internet advertising, vertical class and retail experience of third party e-commerce platform, and so on, to create a three-dimensional Garment Retailing ecosystem with the combination of resources, digital marketing and supply chain optimization, and domestic cross border collaboration.

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< p > the net profit of Xu Jiadong and Li Peng in the 2014-2017 year of the paction is not less than 65 million yuan, 91 million yuan, 126 million yuan, and 170 million yuan, which is a good thing for the 100 yuan trousers industry with a net profit of 31 million 490 thousand yuan in 2013.

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< p > but there are many market voices worried that the industry advantage of "a href=" http://sjfzxm.com/news/index_h.asp "global Tesco" /a "is enough to support such a high performance commitment.

At present, China's cross-border B2C retail business participants are mainly Alibaba, Jingdong, eBay, Amazon, jumei.com, vip.com, Lanting Pavilion, DX and so on.

Hundred round pants industry in the plan to prompt the risk, said the cross-border electricity supplier trade technology and service mode in the rapid development stage, product and mode innovation replacement faster, fierce competition.

Apart from dealing with the competition of the cross-border export of retail electricity providers such as Lanting Pavilion and DX holdings, the global market is also facing the squeeze of cross-border export retailers such as EBAY, Amazon, speed sell and so on. Meanwhile, the new entrants of the future industry will also impact the industry.

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In recent years, most garment enterprises have launched online operation, but the actual effect is not too big. In general, trousers products are more popular than the upper products and increase consumer's desire to buy, and there is a serious homogenization of pants products in the market, and the market competition is extremely fierce. It is not easy for the hundred circle trousers industry to make more consumers to pay the bills. But most investors are pressing the reasons for this acquisition target. As of press release, hundreds of circles have already appeared in many circles, and insiders remind investors to pay attention to risks and do not blindly follow the trend of P speculation.

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