How Did Busen Survive After It Was Abandoned? New Boss Cuts The Main Business

It has been quite impressive after encountering the sale of the parent company.

Clothing caught in the dilemma of survival.

Zhejiang Busen apparel Limited by Share Ltd (hereinafter referred to as Busen dress) said in its latest announcement that it plans to set up a wholly owned subsidiary, Beijing Xinghe gold clothing information technology Co., Ltd., and began to enter the field of financial science and technology services.

Self chopping

The main industry, and involved in the field of science and technology, is the pformation of Busen's clothing and accessories Internet Co after the Xinghe interconnection.

According to the insiders, following the sale of the old owners, the new boss was ordered to rectify the development of Busen.

Cut down on the main business

Recently, the Zhejiang Busen apparel Limited by Share Ltd has issued several announcements that it adopted the motion on the establishment of a subsidiary Beijing Xinghe gold clothing information technology Co., Ltd. at the twenty-first meeting of the Fourth Board of directors, and will set up the wholly-owned subsidiary with a cash contribution of 12 million yuan.

Beijing Xinghe gold clothing information technology Co., Ltd. mainly engaged in technology one-stop service, computer technology training, and other areas related to Internet technology.

Xinghe Internet group said that the establishment of the subsidiary is based on the long-term development in the future, providing one-stop financial services for SMEs, and has a positive driving significance for the future integration of Busen apparel industry.

It is reported that Busen apparel has been abandoned by more than one shareholder.

After the change, Xu Maodong, chairman of starriver Internet, began to "move" the original main business of Busen clothing.

The first is to terminate Busen clothing and apparel industry as the core business.

In November 17th, Busen clothing issued a notice on the cessation of clothing investment projects, halting the use of 62% investment amount, "an annual output of 400 thousand high-end products."

Production line construction project ".

On the same day, Busen costumes said that the investment real estate owned by Busen clothing, Hefei Baima clothing City store and Chengdu Shangdu dress Plaza Shop, were pferred to Busen group. Busen clothing will receive assets pfer income of about 10 million 672 thousand and 200 yuan.

It is worth mentioning that Busen clothing also announced that 5 executive directors and 1 independent directors of the board of directors have resigned, and are currently holding Busen clothing, Limited by Share Ltd chairman Xu Maodong, Xingyang Internet vice president, Wei Jing Han, Xu Maoming's nephew Li Xiaoyu, Xu Xiangyang, Interactive Technology Co., Ltd., director Yang Li Jun, taking over Busen clothing.

Industry experts pointed out that after the departure of the former executives, the new owners quickly let the directors familiar with the Internet industry "patch up", and further confirmed the strategic intentions of Busen's apparel pformation.

Declining performance is a long way to go.

Judging from the development in recent years, Busen has a long way to go.

In October 25th this year, the three quarter report of Busen apparel released in 2016 showed that the operating income in the first three quarters was 246 million yuan, down 17.33% compared to the same period last year. Net profit attributable to shareholders of listed companies fell by 232.77% compared to the same period last year, and there was a loss of 28 million yuan.

In explaining the reason for the slump in net profit, Busen apparel said it was mainly due to a decrease in operating income and a decrease in operating profit.

And because of the downturn in the clothing market and the continuous decline in sales, the company expects that the loss in 2016 will expand to 38 million -0.45 billion yuan.

As a matter of fact, Busen clothing has been on the market since 2011, and its performance has experienced a short period of glory.

In the 2012 earnings report, the net profit of Busen's apparel declined by 23.98%. In the 2013 earnings report, Busen's apparel attribution net profit dropped 84.9% compared to the same period last year. In 2014, the net profit of Busen's apparel fell 1792.27% to -1.03 billion yuan, the first loss since the listing. In 2015, although the net profit of Busen's clothing turned into a profit, its operating income still had a double-digit decline.

In order to reverse the decline, Busen began to implement the "diversification" development strategy, not only investing in financial affairs, but also developing real estate business, but from the earnings report, this seems to be of little help to Busen group's performance.

In addition, Busen clothing performance continued to decline, but also encountered many failed restructuring.

Although Busen apparel has been listed for less than six years, it has undergone 3 failures.

In August 2014, Busen clothing took the first step of restructuring. Hong Wah agriculture intends to buy Busen and achieve backdoor listing. However, it finally led to the restructuring and abortion due to differences between shareholders.

After the failure, in March 30, 2015, Busen group announced that it would pfer 29.86% of its Busen clothing shares to Shanghai Rui Wei asset management partnership, and then its assets became Busen's apparel control shareholder. In May of the same year, it planned to re implement the merger and acquisition with Hong Wah agriculture, but it was once again blown off because of suspected false information.

In January 18, 2016, Busen apparel bought an automobile industry chain downstream enterprise, intends to carry out the third reorganization, but then failed.

After many failed restructuring, Busen apparel disclosed in August 17th that it was 95.02% of the assets of the company and became the new controlling shareholder.

To this paction, Xinghe Internet group told the Beijing Commercial Daily reporter that the acquisition of shares in listed companies was mainly due to the long-term value of Busen's clothing investment and its future development prospects.

However, the industry believes that Xinghe Internet Group, as an off line capital, has taken the lead in Busen clothing and has implemented a series of pformation policies. Most of them want to make use of the identity of Busen apparel listed companies for capital level operation.

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It is hard to find a way to survive.

Experienced the controlling shareholder "big change the blood", the reduction clothing main business Busen clothing, the future development power has already grasped in Xu Maodong's hand.

After the change, the Busen dress said that in the detailed report of change of rights and interests, it did not rule out that in the next 12 months, it would try to adjust the assets and business of Busen clothing, and did not exclude the possibility of selling, merging, buying and reorganizing assets.

Public information shows that Busen group has reduced nearly 100 stores in the first half of last year, and as of now, there are about 1000 Busen men's stores.

Beijing Business Daily reporter login Tmall mall, Jingdong mall found that Busen's official flagship store is still running.

But it is worth mentioning that although Busen men's wear is still on sale, fans of Tmall's official flagship store only have 70 thousand fans, while the seven wolves also have 1 million 520 thousand fans as well as 391 thousand men's fans.

To a certain extent, this reflects consumers' low concern for Busen men's clothing.

For the future of Busen Menswear, the Beijing Commercial Daily reporter interviewed the office and Planning Department of Busen group on the phone. The official of the Office pointed out that Busen clothing is no longer attributable to Busen group.

And Xinghe Internet group said that the company has sufficient funds and resources, in the future will play a role in promoting the development of Busen men's clothing.

But in the view of independent fashion critic Ma Gang, Xinghe Internet as an off line enterprise, it is unrealistic to simply hope that the performance of Busen clothing can be pulled through capital and resources.

At present, the domestic men's wear industry is in a downward stage. The impact of medium and high-end men's clothing is particularly obvious, so that the competitiveness of enterprises is far from being so simple.

Moreover, from the current action analysis, the new actual holding company is more likely to see Busen clothing as a shell company.