Garment Companies Scramble To Cross The Border To Play Finance

Recently, nine Mu Wang announced that a wholly owned subsidiary would like to invest 203 million yuan to increase its capital, and last week, the United States and costumes also participated in the launching of the first private bank in Shanghai, holding 15%. Market participants believe that the cross-border entry of garment enterprises into the financial sector is undoubtedly the optimization of company resource allocation. preferably One way, however, is to invest more uncertainty in private banks.

　　 Cross border projects with service companies have contributed to profits.

Since last year, with the deepening of financial reform, the call for the establishment of private banks is surging. The State Council promotes private capital to enter the financial industry, making many listed companies' enthusiasm for entering the financial system completely released and competing with the financial industry's non-performing enterprises.

Meanwhile, clothing listed companies in the throes of adjustment are also on the move. As early as the Ningbo bank went public in July 19, 2007, YOUNGOR held 179 million shares of Ningbo bank, accounting for 7.16% of the total share capital of Ningbo bank. Since then, through repeated holdings and participation in fixed growth, as of July 23rd, YOUNGOR has held 351 million shares of Ningbo bank and its shareholding ratio has increased to 12.16%. In September last year, Shanshan Group applied for the establishment of private banks.

Investment in the banking sector has made YOUNGOR profitable. In the first half of 2014, Youngor The revenue reached 7 billion 580 million yuan, down 5.2% compared with the same period last year, and the net profit attributable to listed companies was 1 billion 830 million yuan, an increase of 90.5% over the same period last year. Due to the inclusion of Ningbo bank's rights and interests in the consolidated financial statements, the net profit of investment increased significantly. In the first quarter of 2014, the investment business achieved a net profit of 870 million yuan, of which Ningbo bank contributed 800 million yuan, accounting for 92%. In the three quarter of this year, the profit gained by YOUNGOR bank in the sale of financial assets was 857 million yuan in Ningbo bank.

With the upsurge of private banks, the United States and Shanghai fair Yao (Group) Co., Ltd. (hereinafter referred to as the Jun Yao group) together as the main sponsor to prepare the establishment of the "Shanghai Huarui bank Limited by Share Ltd", intends to register capital of RMB 3 billion 500 million yuan, the United States and the state clothing investment total investment of 525 million yuan, the shareholding ratio is 15%. As one of the sponsors of the first private bank in Shanghai, Smith Barney's clothing has attracted the attention of the market since the news came two months ago. Not only has the company's share price surged, but also the company has successfully attracted a large purchase of a private company, and has successfully become the third largest shareholder of the company.

In addition to the establishment of private banks, clothing listed companies have also become major shareholders of securities companies. A total of nine subsidiaries of the Tibet Capital Investment Co., Ltd., which is a wholly owned subsidiary of the company, intends to subscribe to 68 million shares of CAITONG securities with its own funds at the price of 2.98 yuan / share, with a total investment of about 202 million 640 thousand yuan, accounting for about 2% of the total share capital of CAITONG securities after its capital increase and share expansion.

　　 Private banks' earnings remain uncertain

To go on the market company Analysts believe that the frequent cross-border investment behavior is mainly due to the recent downturn in the apparel industry, the reduction of sales terminals and the impact of e-commerce, forcing companies to seek new cross-border cooperation from my rescue.

For this external investment, the US state clothing said that the establishment of private banks has carried out a major mission of promoting financial reform. The opportunity to participate in the establishment of Shanghai's first private bank as the main sponsor is a rare opportunity for the company to develop investment. Shanghai is vigorously building an international financial center, and the financial and banking industry is facing tremendous opportunities for development and good prospects. At the same time, the company's investment in the establishment of private banks is conducive to optimizing the allocation of resources and increasing the rate of return on capital in the future.

In the three quarter of this year, the report showed that six of the net profits of garment enterprises were declining year-on-year, such as the influence of industry, and the performance has started to decline since 2013: the year-on-year revenue in 2013 dropped by 3.81%, the net profit decreased by 19.62% compared with the same period last year. In the first three quarters of 2014, the company's revenue decreased by 15.07% compared with the same period last year, and the net profit fell 27.88% over the same period last year. According to the insiders, as the only foreign company in Zhejiang province to invest in CAITONG securities, the company is expected to share the profits of the securities companies' business growth, enrich and optimize the investment structure of the company, improve the efficiency of capital utilization, and expand the source of earnings for the company.

A broker told reporters: "clothing listed companies in the background of the main industry is poor, through equity investment to enter the financial system, thereby increasing the company's new profit growth point, from the financial reform policy to get a slice of the cake." There are also some market participants who are worried about cross-border financial services. They believe that the relevant policies are not yet clear and whether the market will tilt towards private capital is still unknown. The high profitability of private banks still has many uncertainties.