What Has Happened To Dalian Dayang, A Garment Manufacturer Who Has Been Backdoor Listed?

Yuantong Express is the first listed company in China's express industry. With the help of Dalian Dayang creation Limited by Share Ltd, it completed the backdoor listing in 2016. From January 16, 2016, the first disclosure of the backdoor scheme to the successful landing of A shares was 8 months. What is the origin of this garment processing factory that is closely watched?

Founded in September 1979, the Limited by Share Ltd, founded in September 1979, focuses on the production and marketing of all kinds of high-end clothing products, and has a senior men's clothing brand TRANDS. It was listed on the Shanghai stock exchange in June 2000.

Backdoor listing means that a Private Companies gets a certain degree of controlling power by investing assets in a less valued listed company, making use of the status of its listed company to make the assets of the parent company be listed. Usually, the shell company will be renamed.

The qualification requirements for shell companies are: 1. small market capitalization, low 2. price, clear 3. equity relations, 4. small liabilities, 5. no major financial or legal problems, 6. local government support, 7.. If the acquisition process is related to the acquisition of the assets of the original listed companies, the smaller the listed companies are, the less expensive the borrower pays.

Obviously, Dalian Dayang creation Co., Ltd. is in line with the demand for "shell" by the express delivery service. But why does the creation of Da Yang create "shell"?

Why did Da Yang create "shell"?

According to the analysis of the personage in the industry, that is, when Dang Yang created the world market, it was the financing demand for the development of the enterprises under the background of the rapid growth of the domestic and foreign clothing market. The listing did indeed raise a large amount of capital to support the growth of the enterprise when the company needed to rapidly expand its capacity at that time. However, in the current market background and enterprise development plan, the financing demand of enterprises is not so urgent. In addition, Yuantong Express urgently seeks these objective factors.

The creation of Da Yang after being backdoor

To put it simply, the companies that are being taken back from the listed companies are still in the process of being replaced by assets instead of listed companies.

After a major reorganization, Dayang will further focus on the development of the brand to make further progress. Through cross-border capital cooperation, it will seek synergies between the upper and lower industrial chains and provide capital support for the further development of the clothing industry. In the future express delivery, Dayang still holds 132 million of the shares. The stock market is now worth two to three billion yuan. In the future, it can be liquidated at any time. If there are other industries in the future, it can realistie other investments.

The founder of Da Yang created a high-end suit, which used "exclusive line" mode to "suit customers' needs". Because some high-end suits can be ordered at dozens of times at the same time, so the "single volume and single cut" mode is now applied to the customized business.

This is regarded as a large market with great market potential and higher profits. In 2007, the demand for European customers began to enter the custom market. Today, Dayang group has established a wholly owned company in the United States and has 400 single volume shops in the United States. In addition, they also signed a contract with INDOCHINO, Canada, to jointly develop the tailor tailored market for Internet suits in North America and Europe, and gradually extend to Australia. With only half a year's cooperation, the customized orders from INDOCHINO now exceed 10 thousand orders per month. According to the plan of the two sides, the order will reach 1 million orders per year by 2020. If we can really get what we want, this means that Dayang group will become the largest garment customization factory in the world.

It is worth mentioning that in this project of cooperation with Canadian partners, Dayang group also holds 21% of the shares. At the same time, in March 2016, Dayang group's domestic customization business officially started, mainly facing the clothing brand and custom shop, and strive to build a domestic menswear customized supply chain. In just six months, it has harvested the cooperation intention of more than 40 enterprises in China.

Dayang creation company, which has no market performance pressure, has invested a lot of money in equipment, design and customer maintenance, and has won a vast market overseas.