Why Does The Exchange Company Terminate The Listing Application?

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Competing to enter the harvest season,

Parent company Guangzhou Humei

Group Limited by Share Ltd (hereinafter referred to as "Hui Mei Group") abruptly suspended the application for listing in July this year.

Hui Mei group told reporters that since Fang Jianhua, chairman of the Hui Mei Group, wanted to increase the share of the company's shares, in accordance with the relevant provisions of the SFC, the application for cancellation of the listing is now cancelled, and the listing will be re applied next year.

Withdrawal of listing application

In the afternoon of December 15th, he announced that the Limited by Share Ltd, Guangzhou Humei fashion group, which invested in the stock market, would adjust its equity structure for its own strategic development needs, apply to the SFC to withdraw the initial public offering and apply for a listing on the growth enterprise market. In December 14th, it received the notice of termination of examination of administrative licensing application issued by the SFC, and agreed to terminate the examination of the above administrative licensing application of Humei fashion group.

The company held 60489054 shares of Sini fashion group, accounting for 25.20% of its total shares as of this announcement.

According to public information, Fang Jianhua, chairman and CEO of Yin Mei Group and founder of Yin man brand, started business in 1998.

In 2008, "Yin man" began to enter Taobao Mall (Tmall), from ODM, B2B to B2C pformation. In 2011 and 2013, "double eleven" ranked the top of Tmall women's wear brand.

It is reported that its own brand has been incubated by the Hui Mei Group, including: Yin man, Chu Yu, living in left, samyama, Dali Fang, autumn shell (formerly known as Qiu Qiu), Pass and so on. At the same time, the main brand of the company derives a number of related sub brands, such as home brand HOME, children's wear brand Kids.

Its products range from women's shoes, bags, sportswear, home decorations, furniture and so on.

Hui Mei Group is the first brand to stop listing applications.

At the beginning of May this year, nearly 50 listed companies on Alibaba platform were invited to the delegation to visit the Shenzhen Stock Exchange. Media reports said that 100 business enterprises had submitted their applications for listing. At present, the scale is still expanding, and the market valuation is expected to exceed 100 billion yuan.

In March this year, the ten Amoy brands submitted to the Alibaba group were three squirrels, remittel, Korea, dresso, rip, silk, camel, nu Fang, Han, AFU and puppy electric appliances, all of which belong to the representative brand of Tmall on the platform, covering snacks, clothing, cosmetics, electrical appliances and other fields, and the road of listing has also made varying degrees of progress.

In December 13th, Tmall announced that it had received three applications from nearly 200 Amoy businesses such as squirrels and Amman since its establishment.

Founder's equity holdings

Headquartered in Dongguan, the listed clothing company searched for 324 million of its investment in the US in March 2015, accounting for 25.2% of the shares.

Fang Jianhua once explained, "the clothing companies listed on the A shares in 2014 are generally 40 times the market value of the net profit of that year. We are a non-listed company, and the valuation standard is different from that of the listed companies. The value of this search to the US group is about 33 times that of 2014."

In July 1st of this year, the securities and Futures Commission issued a prospectus for its listing on the growth enterprise market. The prospectus shows that the company's actual controller Fang Jianhua, Dan Yufang and its concerted persons collects 42.58% of the shares of Hui Mei Group, and searches for 25.20% of the special shares and 13.20% of IDG's capital management.

In addition, Zhuhai Hui Cheng, a platform set up by Hui Mei Group for employee incentive plan, accounts for 9.17% of the total share capital of the company.

A securities analyst told reporters that the shareholding structure design is based on shareholder equity ratio, through a series of adjustments to shareholders' rights, shareholders' meeting and board of directors' powers and voting procedures, and so on.

Share allocation is the cornerstone of company operation stability.

Generally speaking, the distribution of shares is relatively clear at the beginning of the venture, and the structure is relatively simple.

However, with the development of enterprises, there will inevitably be gains and losses and various conflicts of interest in distribution.

At the same time, there are many special interests such as dormant shareholders and dry stocks. These uncertainties aggravate the risk of company operation.

According to the world clothing and shoe net, the suspension of listing applications is also widespread. Under normal circumstances, enterprises withdraw their listing applications because they are not in line with the listing requirements, and have to withdraw. For example, the queuing time is too long, resulting in inconsistent requirements for profits or changes in ownership.

According to Hui Mei Group's introduction, the withdrawal of the listing application was due to the withdrawal of Fang Jianhua, chairman of the exchange group, in accordance with the provisions of the securities and Futures Commission.

However, the person did not disclose the specific amount of Fang Jianhua's holdings.

According to the prospectus, Fang Jianhua holds 18.50% of the company's shares directly, holding 3.51% stake in the company through Zhuhai Hui Ji and Zhuhai Hui Zhi.

New brand brings profit pressure

For Amoy merchants themselves, seeking listing has become a key link in business competition.

Some analysts pointed out that whether it is the dissipation of the electricity supplier bonus or the invasion of the international fast fashion brand, the day of the brand development is even more difficult than before.

In addition, the high cost of Amoy brand itself relies on Ali platform, which also makes its net profit lower. In order to deal with such a situation, some Amoy brands even start to expand the form of offline stores, but they do not have a line of operation fund, which has also increased the pressure on this pformation.

Fang Jianhua said earlier that listing is to raise funds, it can also enhance the company's brand awareness, increase the tools and capabilities of expanding business, attract talents, and also reduce the operational risk of the company.

After the listing, the company can also have more opportunities for mergers and acquisitions in the future, and use capital market to expand the company's business.

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According to the world clothing shoes and hats net, in 2013 -2015, the operating income of Hui Mei Group was 590 million yuan, 949 million yuan and 1 billion 141 million yuan respectively, with net profit of 33 million 307 thousand and 300 yuan, 31 million 907 thousand and 800 yuan and 15 million 814 thousand and 800 yuan respectively.

Net profit declined for a long time. Hui Mei explained that the new brand's rapid hatching had a certain impact on the performance: new brands such as "left", "Pass" and "autumn" were added in 2014. In 2015, new brands such as "Dali Fang", "five beans" and "Yin man HOME" were added. The new brands need to invest a lot of operation cost in the initial stage of incubation. Meanwhile, the new brands should also be gradual in terms of market acceptance and acceptance. From the initial incubation to the realization of profits, they need to undergo a period of cultivation, thus lowering the overall performance in 2014 and 2015.

Looking for opportunities under the line

Beginning in 2015, the group began to move from line to line, launched its brand O2O project, and the "Yin man + thousand city stores" project was developing rapidly. By the end of 2015, "Yin man + thousand city stores" had signed 163 outlets, covering 23 provinces and cities.

Prospectus shows that in 2015, the proportion of offline business income of the group was 2.01%.

The funds raised by the group after the listing are planned to be put into three major projects, including the paction and interaction channel upgrading project (O2O project), the fashion brand incubator construction project and the information construction project.

The total investment of the three major projects is about 450 million yuan, all of which come from the listed capital.

In terms of operations in the year to October this year, the business is normal.

During the double 11 period this year, Fang Jianhua announced that it has upgraded from an Internet brand to a new retail brand.

"We need to break the traditional retail thinking and mode of business and use new thinking to do offline business.

The integration of online and offline channels and cooperation with professional modern logistics enterprises will make good use of our advantages: fans, technology, big data and so on.

Under the direction of the Amoy brand, the offline brands are forming a new competitive relationship with all the Amoy brands including the Hui Mei Group. From this year's "double 11" women's clothing sales comparison, the brand names such as Neman, rip, silk and other brands that had once been bully almost fell across the board, but on the top of the traditional offline brands such as UNIQLO, ONLY and La Natsu Bell.

This contrasts strongly with eight years ago and several years of "double 11".

This year, Tmall's "double 11" women's wear brand sales list ranked the top five in order to be UNIQLO, ONLY, Bosideng, Han dresses and Lok Ting, if sold from merchants, followed by UNIQLO official flagship store, ONLY official flagship store, Han Dali House official flagship store, Lok Ting official flagship store, and La Natsu Bell's official flagship store.

The Amoy brand has almost completely withdrawn from the list, leaving only the Korean clothes house.

Even if the list is expanded to the top ten, there is only one brand of Korean clothing house.

In 2012, "double 11" data showed that the top three women's clothing categories were all brands of Amoy, followed by Yin man, rink and silk and Han dresses.

More interesting reports, please pay attention to the world clothing shoes and hats net.