Busen Shares Sell Shell Transformation Plan To Stop The Decline In Performance Is Difficult To Turn Over

According to the data, Busen Ag fell 1 days in November 27th on the three day of -12, or more than 20%, of which five of the top five seats were institutional seats, with a total transaction value of 184 million 112 thousand and 200 yuan. As Hong Wah's agricultural backdoor Busen shares ended, Busen shares were voted by institutional investors.

In November 27th, the company announced the announcement of the termination of restructuring. The company's stock fell on the same day, and its three consecutive day (November 27th, November 28th, December 1st) fell by more than 20%, and the agencies fled. As of December 5th, Busen shares closed at 18.22 yuan / share, compared with the opening day of the restructuring plan, which dropped nearly 20.2%.

In addition, when the share price is cold, the company's performance has not improved. This year, the net profit of Busen shares in the third quarter is -4563.56 million yuan, down 554.74% compared with the same period last year, and it is expected that this year's annual report will also lose money.

　 Controlling shareholder's termination of shell selling plan

In November 27th, Busen shares officially announced the termination of the restructuring, planning a 6 month backdoor scheme in the last link aborted.

The announcement of the termination of major asset reorganization by the company showed that in November 20th, Hong Wah agricultural shareholders proposed to hold a meeting in the company to discuss the termination of major asset reorganization related matters. Among them, Hong Wah's main shareholder in agriculture is Li Yan.

According to the announcement, the termination of the reorganization is mainly due to two reasons: there are major differences between the parties in the transaction on the adjustment of the supporting financing in the issue plan. Busen group hopes to adjust the issuance plan, cancel the matching financing and not dilute the share of the company's shares; but Kang Huanong shareholders insist that the supporting financing will help speed up the development of the company, further strengthen the shareholding ratio of the major shareholders, disagree with the adjustment, and fail to reach an agreement after repeated negotiations.

According to the previous restructuring plan, Busen shares intends to use the lock price method to issue more than 60 million 400 thousand shares to Li Yan. According to the issue price of 12.63 yuan / share, the total amount of matching funds raised by this issue is not more than 762 million 852 thousand yuan, and the total amount of the total raised funds does not exceed 25% of the total amount of the total assets of the issue shares and the total amount of the matching funds to be issued.

If this supporting financing issue is successful, Busen Group Co., Ltd. holds 833 billion 700 million shares of Busen shares, accounting for 16.79% of the total share capital, and Busen investment holds 99 billion 750 million shares of Busen shares, accounting for 2.01% of the total share capital, and the shareholding ratio will be greatly diluted. For Busen shares, its voice will be greatly weakened.

Reporters on the reorganization of the termination of the supporting financing differences between the specific situation of the consulting company, the company's staff said that the announcement is the right, inconvenient reply.

In addition, another reason for the termination of the strategy is that the views on strategic development do not agree. According to the announcement, if the reorganization is successful, Busen group is still the second largest shareholder of the listed company, and has a seat on the board of directors, hoping to participate in the management of listed companies for a long time. Many exchanges and exchanges between the trading parties have great differences in the future industrial layout, industrial development and industrial chain expansion. Busen group hopes that Hong Wah agriculture will fully expand the downstream rice industry and build terminal brand, while Hong Wah agriculture believes that taking into account the existing scale of production, manpower allocation and other factors, it is still not suitable for downstream industries to expand.

After the termination of the restructuring news, the company's stock was immediately voted by institutional investors. Wind data show that in November 27th, 1 months of November 27th, the company fell three consecutive days, down more than 20%, of which five of the top five seats were institutional seats, with a total transaction value of 184 million 112 thousand and 200 yuan.

It is worth noting that in 2014, the China Daily reported that there were only two trusts in the company's institutional investors. In the third quarter, the company bought a large number of funds, and it happened that the company announced that the restructuring plan was in August, the funds entered or related to the concept of reorganization. The first quarter of the third quarter holding the company's fund was ICBC Credit Suisse fund management and huitianfu fund, holding 3.65% and 3.41% shares of the company respectively.

　　 achievement Decline is difficult to turn over

With the termination of the restructuring, Busen's share performance, which is intended to be restructured and transformed into agricultural stocks, will continue to decline. The company's third quarter earnings report showed that the company achieved operating income of 137 million 896 thousand and 500 yuan in the third quarter, a decrease of 25.33% compared with the same period last year. Net profit attributable to shareholders of listed companies is -1204.815 million, down 1325.14% compared to the same period last year.

company Gross profit margin Also saw a decline in gross margin sales from 38.27% at the end of 2013 to 34.29% at present.

It is worth mentioning that, while the company's operating income dropped by nearly 1/4, the sales cost increased by 5.51% compared to the same period last year. This means that although the company has carried out a certain marketing promotion, it has little effect on sales revenue. On the other hand, the company's inventory is high, up 14.17% compared to the same period last year, reaching 284 million 387 thousand and 600 yuan.

According to the company's third quarter cash flow statement, the company currently relies mainly on the cash flow generated by fund-raising activities for routine operations. As of September 30th, the short-term loan amount of Busen shares was 216 million yuan, a substantial increase of 96.36% compared with the beginning of the year.

It is worth noting that Busen's controlling shareholder Busen group has been undertaking this equity pledge. Wind data show that since this year, Busen group has carried out 3 equity pledge in a row. As of the last day of stock pledge disclosure, Busen group has pledged 60 million 600 thousand shares of its company, accounting for 72.69% of its total shares and 43.28% of its total share capital. Since this year, through the pledge, Busen group has raised 278 million 500 thousand yuan to CITIC Securities (quotes, interrogation), its main purpose is to return bank loans. As of September 30th, the company's cash and currency were 21 million 181 thousand yuan.

According to the information disclosed in the three quarterly report, Busen shares 2014 annual performance loss is expected, net profit -5623.87 million to -5373.98 million. For the first year's performance loss after the listing, the company expressed "the overall market situation of the company is still grim, the clothing terminal market is weak, the customer orders are reduced, and the sales scale is decreasing."

According to previous media reports, as of this year's half year report, the current apparel industry listed companies, Busen shares become the most serious loss of listed companies, followed by the three are Kaiser, shares, and candid road.

　　 Recruitment and investment projects make tardy progress

In addition, it is worth noting that the stock market of Busen listed in 2011 has made slow progress, and many have even been in a state of stagnation.

According to the company's semi annual report on the use of investment funds in 2014, the company promised to invest 229 million yuan in the project, and the total amount of investment has now totaled 121 million 134 thousand and 400 yuan, and the cumulative investment at the end of the year is only 52.9%. The reporter noted that the three items of Busen stock raising and investment project are expected to reach the scheduled date of use in December 2014, and the progress of each project shows slow progress.

Specifically, the company's marketing network construction project now accumulative total investment amount is 56 million 161 thousand and 800 yuan, accumulative total investment progress is only 46.74%. The annual output of 400 thousand middle and high grade jacket production lines is now 62.69%, but in the first half of this year, there is no investment. This situation also exists in the brand design R & D center project sink. In addition, 100 thousand new sets of technical upgrading projects for medium and top grade Western-style clothing production lines have been added, with the progress being 77.72%.

In addition, the brand design and R & D center project was originally also a product in December 2014, and this year the project will be extended to December 2015. The current progress is only 10.04%. The reason for the delay is that the demand for garment industry has been slowing down since 2012, and the men's clothing brand has been developing towards a more differentiated and meticulous direction. The company's brand design research and development is also being adjusted accordingly to meet the new market competition needs.