Red Dragonfly IPO Meets Trial 5 Questions To Make Trouble

In order to further enhance the transparency of the initial and refinancing audit, the SFC since February 1st this year, on the same day, the main questions raised by the members at the trial meeting were released to the public on the day of the trial meeting.

From the disclosure of the IPO trial conference, the number of questions disclosed by most enterprises is 2-3. However, the red dragonfly has been "focused". The number of questions disclosed by the trial committee on the same day is 5, including recommendation products, third party collection, inventory digestion, inventory impairment preparation and franchisee's unlicensed operation and so on 5 aspects.

Among them, only around the problem of unlicensed operation of the franchisee, the issuing committee members put forward 5 questions, including: the number of franchisees without franchisees in the franchisee; the reasons for the difference between the two disclosures; the way and process of verification of the sponsor's organization; whether the franchisee's unlicensed business behavior is in line with the relevant system of the issuer's franchisee management, whether the issuer's illegal activities are constituted; the franchisee and franchisee develop the internal control system's establishment, sound and effective operation during the reporting period.

It is worth mentioning that, in the pre disclosure prospectus, the Red Dragonfly did not mention the relevant contents of the franchisee's unlicensed business. Reporters repeatedly called the Red Dragonfly dongma office, but no one answered the phone.

However, in the prospectus, the Red Dragonfly admitted that the company had the management risk of the marketing network, that is, the company had signed a franchise contract with the franchisee, but the company could not guarantee that it could operate under the premise of the company's standardization.

Public information shows that around 2007, AOKANG International and red dragonfly two shoe enterprises began to plan for listing at the same time. Shortly after the launch of AOKANG international in April 2012, A shares entered a IPO suspension for more than a year. The dragonfly's IPO process was delayed.

But three years went by. Red Dragonfly However, the total number of first issue shares is no more than 80 million shares, and it is proposed to raise 970 million yuan to invest in marketing channel construction projects and information systems to enhance construction projects. Among them, the marketing channel construction project plans to invest 867 million yuan, including 30 flagship stores and 100 standard stores.

As a matter of fact, most clothing companies have gone through the expansion of their own stores. AOKANG disclosed in the prospectus, the company intends to raise 876 million yuan for marketing channel project construction, and intends to open 348 stores in a few years. But less than half a year after listing, AOKANG international has extended the construction cycle of investment projects and slowed down the pace of expansion. In 2013, there were more than 400 net shops in AOKANG international.

Many other companies in the industry have also experienced a "closed shop boom". The red dragonfly is no exception. The prospectus shows that at the end of -2013 and the end of 6 in late 2011, the number of Red Dragonfly outlets was 699, 639, 595 and 530, respectively, and the number of "red Dragonfly" stores was "shrunk" by 1/4 at the end.

"Ignore the store Rental cost The impact of rising sales and electricity supplier sales is still unwise. An institutional analyst at Shanghai admitted to reporters.

In the future blueprint of red dragonfly, the goal of opening shop is far more than 30 flagship stores and 100 standard stores mentioned in IPO. According to the prospectus, the company plans to add about 1500 stores in the next three years. It is estimated that the total number of Direct stores and franchisees will be about 6000 after three years. The proportion of Direct stores is close to 30%, or 1800. Reporters noted that the Red Dragonfly currently has 530 outlets, compared with the target of 1800 Direct stores in three years, and 1270. This also means that if red dragonfly wants to achieve the goal of opening stores, it will have more than 400 new outlets every year in the next three years.

The Red Dragonfly did not consider reducing costs, but labor dispatch was one of the tricks.

Prospectus shows that the company's leather shoes production staff from the end of 2011 to 4013 people at the end of 6 in 2014 2497 people. The production staff of Red Dragonfly dropped sharply because the company was outsourcing to the auxiliary and alternative jobs. In the last three years, the number of production workers dispatched by the company was 1769, 1811, 1466 and 1239 respectively.

According to the "Interim Provisions on labor dispatch" formulated by the Ministry of personnel and social affairs, the number of dispatched workers employed by the employing units shall not exceed 10% of the total amount of employed units, including the number of dispatched workers. The above provisions shall be implemented in March 1, 2014.

Reporters noted that as of the end of 2014 6, the Red Dragonfly dispatched workers accounted for 20%, has exceeded the "Provisional Regulations" 10% of the red line. In this regard, the Red Dragonfly explained in the prospectus that the company has drawn up measures to regulate the number of dispatchers, and plans to reduce it to less than 10% of the total labour force before March 2016.