Zhejiang Garment Enterprises In Jeopardy

Here in the world Clothing shoes and hats More than half of Zhejiang garment enterprises are "in jeopardy", which is better than rice for men's clothing.

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At the beginning of the 21st century, under the background of simultaneous and large-scale growth of domestic and external demand, China's clothing industry is booming, and textile and clothing enterprises are competing to land on the A-share market, and their performance is rising year by year.

Thirty years to the east and thirty years to the west. In recent years, China's garment industry has suffered from internal and external attacks, and the survival of garment enterprises was once in trouble. The latest statistical data shows that 45 A-share listed companies in the textile and clothing industry announced their performance forecasts for the first three quarters of 2014, with only 5 companies expected to increase.

According to the industry analysis, there is still no obvious improvement in clothing terminal retail, and it is difficult to recover in the short term. In this case, the vast majority of garment enterprises choose to find another way out. Some set foot in real estate, and some Rio Tinto online sales channels. They want to take advantage of e-commerce to reverse the decline in performance, and more can breakers are planning to set up the whole garment industry through mergers and acquisitions, and change the main industry to rice planting.

Only 5 of 45 textile and clothing enterprises increased in advance

Statistics show that as of yesterday (September 23), 45 listed companies in the textile and clothing industry in A-share had announced their performance forecasts for the first three quarters of 2014, of which only 5 companies had increased in advance, 5 companies continued to gain, 14 companies increased slightly, 6 companies decreased in advance, 7 companies decreased slightly, 2 companies suffered the first loss, 5 companies continued to lose, and 1 company was uncertain.

Among the above 45 listed companies in the textile and clothing industry, only five companies, namely Hongda Gaoke, Shandong Ruyi, Kaikai Industry, Weixing Shares and Youngor, increased in the first three quarters of this year.

Among them, HTC Gaoke expects the net profit in the first three quarters of this year to be 85.36091 million yuan to 105.059 million yuan, an increase of 30% to 60%; Shandong Ruyi expects the net profit in the first three quarters of this year to be 13.26 million yuan to 13.5 million yuan, with an increase of 450.57% to 460.54%; Kaikai Industrial expects that the net profit in the first three quarters will rise by 215% compared with the same period last year; Weixing expects that the net profit in the first three quarters of this year will increase by 0% to 30% year on year; Youngor did not disclose the specific expected amount of net profit, but said that "the cumulative net profit from January to September 2014 will increase significantly compared with the same period last year".

Among the above 45 listed companies in the textile and clothing industry, 7 companies are expected to lose money in the first three quarters of 2014, namely, Burson, Shinur, Xinlong Holdings, Demian, Huading, Taiya and Vico Essence.

According to the interim report of Burson, the company realized a net profit of -33.2898 million yuan in the first half of 2014, with a growth rate of -394.18%. At the same time, the company expects to achieve a net profit of -44.6011 million yuan to -37.8435 million yuan in the first three quarters of 2014, a year-on-year decrease of - 430% to - 380%. Taiya is the company whose net profit is expected to decline the most. The company expects its net profit from January to September 2014 to be - 32 million yuan to - 24 million yuan, a year-on-year decrease of 501.5% to 351.13%. In addition, Huading Shares pointed out in the semi annual report that the accumulated net profit in the first three quarters of 2014 may be a loss, and the net profit in the first half of the year of the company was a loss of 261278800 yuan.

More than half of Zhejiang textile enterprises are "in danger"

As the main textile production base in China, the textile and clothing industry has always been the pillar industry of Zhejiang Province, and more than 30% of A-share companies are from Zhejiang. However, the continuous downturn of the clothing and textile industry in recent years has also made the vast majority of clothing enterprises feel that their "scenery" is no longer there.

Take the seven companies mentioned above that suffered from pre loss of performance in the third quarter as an example, three of them are from Zhejiang, namely, Burson, Huading and Vico Essence. Except for the three companies whose performance is expected to lose, the other companies have no losses, but the decline of net profit is almost "the general trend".

Baoxiniao said that, affected by the external economic situation and the weak domestic clothing market, the company's terminal retail was stable, and there was no obvious improvement. It was estimated that the net profit attributable to shareholders of listed companies in the first three quarters of this year was 125204300 yuan to 156505400 yuan, a year-on-year decrease of 0% to 20%. The net profit in the first half of the year declined by 18.01%.

In addition, although Aokang International, Zhejiang Furun, Georgebay and other companies did not predict their performance in the third quarter, their semi annual performance has also declined significantly, and there are no factors that can promote the performance in the third quarter to improve significantly.

Among them, Aokang International's semi annual report data shows that the company's operating income in the first half of this year was 1450965800 yuan, a year-on-year decline of 2.75%; The net profit attributable to shareholders of the listed company was 158159900 yuan, a year-on-year decrease of 25.67%.

According to the data of Zhejiang Furun Semi annual Report, the company achieved a net profit of 8.2035 million yuan in the first half of this year, down 68.6% year on year. However, George White, who landed in A-share market for a short time, was also not spared. Net profit in the first half of this year decreased slightly by 2.14%.

Growing rice is better than selling men's clothes

In this severe situation, textile and clothing enterprises have been looking for ways out. The powerful have joined forces and expanded their territory. Some enterprises simply reorganized and injected assets to exit the main textile industry, and Burson is one of them.

In the past two days, Burson's performance in the session was eye-catching, rising 10% and 8.02% respectively for two consecutive trading days. The reason is that the company issued an announcement on September 19. The announcement shows that the company received the Notice of Acceptance of Administrative Licensing Application (No. 141160) issued by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") on September 19, 2014: the CSRC has reviewed the administrative licensing application materials submitted by the company for the approval of Zhejiang Burson Clothing Co., Ltd. to issue shares to purchase assets, Considering that the application materials are complete and in accordance with the legal form, it is decided to accept the application for administrative license.

One month ago, after the suspension of trading for more than 4 months, Burson issued a restructuring plan to realize the backdoor listing of Guangxi Kanghua Agriculture Co., Ltd. through a series of transactions such as major asset replacement, asset sale, issuing shares to purchase assets, and issuing shares to raise supporting funds. According to the restructuring plan, Burson Group plans to sell out all its assets and liabilities except the monetary capital of 180 million yuan, and the value of the sold assets and liabilities is 519.7307 million yuan. Among them, the assets and liabilities with a median value of 430 million yuan proposed to be set aside will be replaced with the equivalent of 100% shares of Kanghua Agriculture held by the counterparty; The remaining assets and liabilities of 89730700 yuan will be sold to Burson Group.

After the transaction is completed, company The controlling shareholder and actual controller will be changed to Li Yan and Du Changming, and Burson will become a seller of high-quality rice and other agricultural products from a manufacturer of brand men's clothing.

The transformation around the main business is still the "main theme"

After all, there are not many people who can "break the tail and seek survival" like Burson, and more clothing and textile listed enterprises still choose the transformation path around their main business.

At the beginning of this year, Aokang International announced that the company and Alibaba had signed an O2O cooperation framework agreement. Both sides will give full play to their respective advantages, jointly carry out market development, realize their future market expansion strategies, and create greater commercial value. According to the agreement information, Alibaba will provide enterprise O2O business services for Aokang International and its subsidiaries, including but not limited to the opening of Tmall, Taobao, WeChat, and other stores, data sampling and analysis, training support, online and offline membership system connection, online and offline (Alipay) mobile payment, and technical support for related products.

In this regard, analysts from securities companies pointed out that Aokang International is mainly engaged in the research, development, production, distribution and retail of men's and women's leather shoes and leather goods products. It is the only A-share listed company for men's shoes. Joining hands with Alibaba will help the company accelerate the development process of e-commerce and realize the transformation from physical stores to e-commerce and physical stores.

While Sima chose to stick to the end in the clothing industry, and launched a series of mergers and acquisitions and cooperation around the main business. In June last year, the company announced that it would purchase 71% of the equity of Zhongzhemushang at a price of 1.98 billion to 2.26 billion yuan. The latter has "GXG", "gxg. jeans" and other brands. Two months later, Sima Apparel made another move, establishing a joint venture with the parent company of Milihong, Italy Meilige Co., Ltd., to represent its children's brands Sarabanda and Minibanda, and increase the middle and high-end children's clothing market. At the end of last year, the company announced that it would cooperate with South Korea Shiming Fashion Co., Ltd. to layout the high-end women's wear market.

This series of actions also made the company's performance improve to a certain extent. In the first half of this year, Sima Clothes & Accessories The operating revenue was 2931757600 yuan, up 7.59% year on year; The net profit attributable to the owners of the parent company was 343755800 yuan, up 20.97% year on year.

"2014 will be a watershed year for the industry. The differentiation between brands will intensify, and some brand companies will face marginalization or even elimination. Only a few companies that take the lead in transforming and breaking through the interactive experience of products and customers can win and gain a new elevation in valuation." Whether it is to join forces and expand the territory, or to keep pace with the times and broaden channels, Even mergers and acquisitions have retreated. In the context of the long-term downturn of the entire clothing and textile industry, transformation has become a topic that A-share clothing and textile enterprises can't get around. In this regard, Orient Securities predicts that in the process of seeking transformation and breakthrough in the whole industry, companies with large self adjustment will gain greater flexibility, but it is brand companies that can adapt to the new economy and Internet environment that will really gain valuation premium in the future.