Po Tried Again To Privatize?

The rumors of "leaving the fashion industry" began in Baozhuang's announcement in June 1, 2015. Baozi called its wholly owned Affiliated Companies PortsBVI the price of 20% of the existing fashion and clothing business PortsHK, which was priced at 600 million yuan, and was sold to the Oriental Fuhai.

Orient Fuhai will identify and introduce third party buyers to PortsBVI, offering an offer of 80% remaining rights to PortsHK with PortsBVI at a price of 2 billion 400 million yuan.

As for the reasons for the sale of shares, Baozi indicated that consumers' shift from traditional retail to online shopping, as well as China's macro environment and other factors, led to a downward trend in corporate financial performance over the past few years.

"It is more in line with shareholders' interests to withdraw from our traditional fashion and apparel business and shift our company's strategic focus to the relevant sectors that are expected to bring better returns to shareholders," said baozi.

This announcement has been interpreted by the outside world as a possible dilemma for baozi to be forced into the fashion and clothing business.

A clothing industry observer told reporters that in recent years, the development of women's clothing industry has indeed encountered difficulties. The cost of raw materials, labor, shops and rentals is high. The electricity supplier is also constantly competing for the "cake" of the physical retail store. Many enterprises are faced with the problem of continuous operation.

The total sales revenue of baozi in the 2014 fiscal year decreased by 12.1% to 1 billion 879 million yuan compared with the same period in 2013. Although its gross profit margin remained at 80.8%, its profit plunged by 75% to 73 million 200 thousand yuan.

Another women's clothing company, the company's shares, also suffered from the decline of its performance. In the 2014 fiscal year, its operating income was 1 billion 235 million yuan, down 10.40% from the same period last year.

The net profit of shareholders was 121 million yuan, down 48.14% compared with the same period last year.

However

At the end of last week, it was publicly stated that the core idea of the announcement that caused "Misreading" was to gradually pform baozi's China business into A share listing.

"In the history of baozi, fashion is a core link.

Baozi International Group covers many fields of real estate, high-tech, finance and insurance, but the core business is fashion. We will not quit this industry.

A brokerage garment industry analyst Zhang Ling (a pseudonym) told reporters: "the announcement of the so-called equity acceptance Fang Dongfang rich sea is the industry's well-known PE, now A shares market shell resources are many, through.

It is also not impossible to help baozi backdoor listing on A shares.

In fact, in January 2015, Kenneth Chan and Chen Hanjie, the main shareholder of baozi, bought the issued share capital of Baodi 6.8% with HK $3 per share, which amounted to HK $112 million, triggering a mandatory comprehensive offer. If successful, Hongkong will privatize its withdrawal from the market.

However, due to various reasons, the offer was not completed, and Baozhuang privatization was blocked.

This stock sale is another attempt of baozi capital operation.

According to the above clothing observers, some traditional clothing companies have increased their share price through various means, including the acquisition of mature business teams from Taobao Tmall, the layout of O2O, diversified development, the sale of clothing industry to commercial real estate and other businesses.

However, "capital means only" speculation "behavior, enhance performance or need to focus on the development of main business.