"Shan Shan" Is Expanding Again, And The Garment Industry Is Flying To Hong Kong Alone.

Plan partition

Last year, the 90% profit came from the stock market. At present, the Chinese fir Department has controlled 4 listed companies.

"The era of making money by clothing is over."

Zheng Yonggang, founder of Shan Shan, said so.

Shanshan, known as China's first garment industry, is planning to strip off its clothing business.

But this does not mean that Zheng Yonggang will "withdraw from the textile and garment industry".

A few days ago, Shanshan announced that it would apply to Hong Kong for its clothing business.

We plan to split up together, as well as the company's financial leasing business.

If completed smoothly, the capital territory of the Chinese fir series is expected to extend to Hong Kong stocks, which will control 6 listed companies.

The main garment industry goes to Hong Kong alone.

Starting from the clothing industry, Shanshan stock (600884) is preparing to divestiture the former main business from the listed companies.

However, in the description of Shanshan stock, this does not mean "abandonment": the clothing business that has worked for Shanshan has done a good job.

In a plan recently released by Shanshan Group, it is ready to carry out asset restructuring of its clothing business, and will control its subsidiaries.

The Limited by Share Ltd has become the only platform for the company to run its apparel business. The platform is the main body of the company, and it issues publicly the foreign listed foreign shares (H shares) and applies for listing on the main board of the Hongkong stock exchange.

In addition, there is a financial leasing company under the company's clothing business, which is stripped from the listed companies at the same time.

In June 6th, the company's shareholders' meeting will vote on the above motion.

Some analysts believe that after the completion of the spin off business, the garment business which has been performing poorly for many years will no longer be "dragging its legs".

According to the 2015 performance data, the main business income of the company's clothing business was 580 million yuan, down 49.32% compared to the same period last year, and the net profit attributable to the shareholders of the company was 17 million 620 thousand yuan.

Before that, the clothing performance of Shan Shan appeared a sharp decline in 2012, and it suffered a continuous loss in 2013 and 2014.

The poor performance of clothing has dragged down the profitability of Shanshan stock to a certain extent.

In 1989, Shanshan Limited by Share Ltd founded the main men's clothing design and production. In 1996, Shanshan became the first listed company in China's clothing industry, and the brand became "China's well-known trademark".

In the first 20 years of development, the clothing business has always been the pride of Shanshan.

But in recent years, the situation has been on a downward spiral. In 2013, the representative of the once famous domestic clothing brand was once broken out in the market and encountered a "10 yuan big sale".

The loss in 2015 can not be seen as a sign of revival of garment business: the stripping of knitwear business during the period is the main factor of "good looks" in 2015.

Apart from this factor, the clothing business of Shanshan did not achieve substantial improvement.

In this reality, let the clothing business "fly away from home" is also interpreted as a "dump" strategy.

"After 20 years of development, clothing only accounted for 13% of the total revenue last year, and the net profit accounted for about 10%.

In the first quarter of this year, clothes accounted for only 10% of our overall income.

In May 18th, when he was attending a forum, he made an explanation for the spin off. "In view of this situation, we now want to make arrangements for the entire clothing business, including our suits and other brand businesses, which we are working on urgently.

After finishing, clothing is equivalent to a separate listed company.

But the company did not consider the breakup as abandonment.

At the investor conference held recently, investors asked about the company's "consideration of the listing of H-shares in clothing business". The response of the company is that "spin off is conducive to expanding the financing channels and promoting the development of the company's clothing business."

Lithium battery business is becoming a new favorite.

The big move of splitting and listing makes the outside world see the determination of Shanshan to "engage in lithium power with one mind".

For Shanshan stock, the layout of the lithium battery field is not overnight.

In 1999, the company set up "Shanshan science and technology", officially involved in lithium battery business. After years of investment, the lithium battery business has been catching up with clothing as another major business of Shanshan.

If the spin off is successfully completed, the lithium battery will officially become the only main business from the current listed company's revenue "protagonist".

From the 2015 performance released recently, lithium ion battery materials sold 40613 tons a year, up 46.28% from the same period last year, and realized the main business income of 3 billion 400 million yuan, up 41.66% compared to the same period last year. The net profit attributable to shareholders of listed companies was 99 million 970 thousand yuan, up 28% over the same period last year.

In the past two years, whenever the lithium battery market in the capital market is "moving the wind", Shanshan shares will be threatened by the status of the concept stocks.

After the two sessions this year, it benefited from the policy of new energy vehicles, and the concept of lithium battery was hit by the capital market.

In the near future, Shanshan stock continues to raise its weight in this field: in May 6th, Shanshan Group launched a huge increase in the capacity of lithium batteries and new energy vehicles. It plans to invest 22.97 yuan / share, 150 million shares of non-public offering, raise no more than 3 billion 446 million yuan, and lay out the key technologies of lithium batteries and new energy vehicles.

Among them, the controlling shareholder of Shanshan Group, Shanshan holding company, will subscribe 90 million shares for 2 billion 67 million yuan.

However, lithium battery business alone seems hard to support the current profitability of listed companies.

The 2015 annual report shows that Shanshan stock company achieved operating income of 4 billion 300 million yuan last year, an increase of 17.58% over the same period last year, and realized a net profit of 665 million yuan attributable to shareholders of the company, an increase of 90.81% compared with the same period last year. According to this net profit level, the lithium battery business will be the only main industry in the future, and the net profit realized in the year will only account for about 15% of the net profit of the listed company.

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Last year, stocks contributed 90% profits.

Last year, supporting the performance of Shanshan stock is neither the original traditional clothing industry nor the new lithium power main business: the 2015 annual report shows that last year, the company achieved a total investment income of 615 million yuan through disposing of trading financial assets, trading financial liabilities and available for sale financial assets, mainly including the proceeds from the sale of bank shares in Ningbo.

Roughly estimated, net profit realized through the "stock market" last year accounted for more than 90% of the total profits of listed companies.

The revenue came from the realisation of an investment many years ago.

In 2015, through the two level market trading, Shanshan stock held a reduction in its holdings of Ningbo bank shares.

During the period, the company accumulated 33 million 490 thousand shares of Bank of Ningbo and gained investment income (including tax) of 610 million yuan.

Statistics show that in 2004, Shanshan shares became shareholders of the Bank of Ningbo. In 2014, after 10 years of holding Ningbo bank, Shanshan stock company, whose main business performance was sluggish, sold its shares for the first time, and made a profit of over 200 million yuan in that year.

Up to now, Shanshan stock still has "enough ammunition" in the field of "stock speculation".

Data show that by March 31, 2016, Shanshan stock company was still the fifth largest shareholder of Ningbo bank with 4.52% stake.

In addition, the company also owns 247 million shares of Chou Chou bank, accounting for 8.07% of the total share capital of Chou Chou.

"Although there is no name, stock speculation is the latest main business of Shanshan." on the snowball forum, some investors joked that before the performance of lithium batteries was enough to support the company's earnings, it seemed "enough to eat for a while" alone.

"Chinese fir series" expansion again

"Shanshan stock" has never been the only chip of the Chinese fir department. If the spin off listing can be carried out smoothly, "Shanshan" will have 6 platforms.

Since the second half of last year, the motion of the FIR system has been quickening.

At the end of 2015, Edisi, a listed company, announced that it had been backdoor listing by STO. After the announcement, Edisi welcomed the 13 trading limit, rising from 13.7 yuan before the suspension to 47 yuan, and the "Shanshan" company became the winner behind the scenes.

In November 2014, the "Hongshi investment" of "Shanshan" invested 1 billion 290 million yuan to take over 89 million 500 thousand of the shares held by Edisi controlling shareholders and their concerted actions. Zheng Yonggang, the real controller of Shanshan Group, became the actual controller and promoted the reorganization of Edisi.

According to the latest stock price, the Chinese fir is 1 billion 100 million.

During this period, the Chinese fir was also invested in Jiang Quan industry.

In June 10, 2015, Jiang Quan, the controlling shareholder of Jiang Quan Industrial Co., invested 93 million 403 thousand and 200 shares of Jiang Quan Industrial Company, which was held at 8.67 yuan per share, to Ningbo Shun Chen investment and Li Wen respectively.

Ningbo Shun Chen investment has become the largest shareholder of the company.

Statistics show that Zheng Yonggang, chairman of Ningbo Shanlong Investment Co., Ltd., holding 90% of the chairman of Shanshan Group, owns 61.81% of Shanshan holdings, while Shanshan Group is a wholly owned controlling shareholder of Shun Chen investment.

As a result, the actual controller of the company changed to Zheng Yonggang.

Before the intervention of the above two companies, the "Shan Shan Department" had successfully operated in Yinghua and achieved "systemic retreat" in the second half of last year.

In addition, in February this year, Shanshan energy was officially listed on the new three boards.

Combined with the listed company Shanshan stock, and the upcoming clothing and financial business split from the listed companies, "Shanshan" will have 6 platforms of listed companies, and the capital territory will expand again.

Zheng Yonggang has publicly stated that "mergers and acquisitions, integration and upgrading of listed companies will be one of the most important business models of Shanshan in the future."

However, for the prospect of the spin off, some market participants find it difficult to judge at the moment.

"Compared with the long-term downturn in the mainland's clothing sector, the Hong Kong stock market has a higher degree of recognition for textile and apparel stocks."

But he thinks the situation may be slightly different.

"Unlike the clothing stocks listed directly on the Hong Kong stock market, as a medium and long term bad business segment in the original listed companies, there has been a" performance poor "performance of the Shanshan clothing business, which is not necessarily a high profile on the Hong Kong stock market.

In addition, the SFC's restrictions on overseas spin offs have left suspense to the Shanshan branch's plan.

Characters

Zheng Yonggang of Zhejiang Merchants: from "tailor" to "shell intermediary"

Relying on the clothing industry to complete primitive accumulation, led the Chinese fir department to carry out a number of capital operations; twice act as "shell intermediary", which borrowed Edisi floating surplus 1 billion 100 million.

In the clothing circle, the name of Zheng Yonggang has been known for many years, but in the capital circle, Zheng Yonggang gradually began to emerge.

In the past two years, in the capital market, Zheng Yonggang is expected to become the actual helm of the 6 listed companies.

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"Hope to be called financier"

Compared with Li Rucheng, Ningbo's fellow townsman and YOUNGOR chairman, Zheng Yonggang, the steering director of Shanshan Group, is more high-profile and confident.

In 1989, Zheng Yonggang, who was 30 years old, founded the Shan Shan suit, and after more than 20 years of "scenery", the main garment industry was declining.

Zheng Yonggang, who relies on the garment industry to become rich, said his wish now is called "financier".

In recent years, through the intervention of several listed companies, Zheng Yonggang's capital wrist has begun to emerge.

In 2015, Zheng Yonggang concluded publicly that "in the capital market, the clothing concept of Shanshan has been very thin."

Based on this cognition, Zheng Yonggang led the Chinese fir series to carry out many capital operations, and the original clothing industry gradually became marginalized.

Zheng Yonggang has no regrets about the withering of clothing industry. His understanding is "successful pformation."

In the media interview, Zheng Yonggang likened the pformation to "finding an object to get married".

"Transformation is the demand of the enterprise itself, just like people who want to get married when they are old, not to be married by their parents."

In Zheng Yonggang's view, the biggest role of the clothing industry is to help the Chinese fir to complete its primitive accumulation, to go public early, and to acquire abundant capital.

At this time, "it is no good to go on doing the old business again. We need to pform and upgrade."

Zheng Yonggang said that thanks to the forward-looking thinking of pformation fifteen years ago, the pformation of "Shan Shan" has been successful.

The pformation Zheng Yonggang referred to was not a lot of capital action in recent years.

These investments are not only involved in banks and insurance, but also in futures, equity investments, venture capital and other businesses through a number of private equity funds and Vc firms.

Among them, especially the two "shell intermediary" attracted much attention.

In the process of intervention and operation of Aidi and Jiang Quan industries of listed companies, Zheng Yonggang's personal "financial skills" played an excellent role, and the method was similar: they had quickly entered the main business through the newly established investment platform, which was pferred by agreement. After controlling the company, they did not put energy into the camp, but immediately promoted the reorganization through changing management layer, so as to achieve the final selling.

With the good news of STO's backdoor listing, Zheng Yonggang's capital operation for Edisi has proved to be a success.

When Zheng Yonggang intervened in Edisi, the cost was 1 billion 290 million yuan. According to the latest market price, his shareholding value amounted to about 2 billion 410 million, and the floating surplus was over 1 billion 100 million yuan.

The restructuring of the industry is still under way.

YOUNGOR's "Derby city"

At the beginning of its listing, Shanshan stock was often compared with YOUNGOR, a listed company in Ningbo.

The two have even staged "Derby" in the various stages of development, and their "turn around" actions are exactly the same: at the beginning of the development, YOUNGOR and Shan Shan were both men's wear brands. In the process of diversification, YOUNGOR and Shanshan had "three carriages"; in the past two years, YOUNGOR and Shanshan have gained considerable benefits through stocks.

Both the listed companies and even the accusations they encountered in the capital market are "not doing the right thing".

As a listed company of garment industry, YOUNGOR's profit comes from stocks and real estate, and the actual contribution of its new high-tech industry is not outstanding.

With the simultaneous pformation of the two enterprises and the deviation from the main garment industry, the competition between YOUNGOR and Shanshan has also weakened, but the capital market does not seem to have forgotten the origins of the two companies.

Some people speculate: between the two Ningbo bosses, who can bring their own clothing companies to a better place? Compared with the YOUNGOR led by Li Rucheng, the Chinese fir treated by Zheng Yonggang appears to be more "unrealistic". When YOUNGOR is engaged in real estate, financial investment and international trade, Shan Shan will turn its attention to the immature lithium battery industry.

"From the scale of assets or operating income, the gap between YOUNGOR and Shanshan is larger. The lithium batteries and new energy vehicles currently involved in the industry belong to the industry with long cycle and high risk."

Sun Jiang, an analysis of the private sector, said, "from a capital perspective, YOUNGOR's investment direction seems more realistic."