Busen Funded The Establishment Of Internet Small Loan Companies And Star Gold To Meet The Pformation

Zhejiang clothing Busen (Limited by Share Ltd), which is mainly engaged in the design, production and sale of men's clothing, is fading away from the original garment business. Busen issued a notice on February 24th afternoon. The company will set up 238 million yuan to set up an Internet small loan company and an Internet Financial asset trading center respectively.

Busen shares said that in order to meet the needs of the company's strategic planning and business pformation, Xi'an folk Financial Street Klc Holdings Ltd (hereinafter referred to as "investment control company") and "Beijing Zhixin commercial factoring Co., Ltd." (hereinafter referred to as "Zhixin factoring") will jointly invest 100 million yuan with the self financing fund to set up Xinghe Internet financial assets trading center limited in Xi'an (the tentative name is approved by the registration authority).

Among them, Busen shares invested 34 million yuan, the proportion of investment was 34%; investment and control companies invested 35 million yuan, the proportion of investment was 35%; to letter guarantee the contribution of 31 million yuan, the proportion of investment is 31%.

The Xi'an Xinghe Internet financial assets trading center limited, which is set up by Busen, covers various types of financial products such as debt, private equity, asset backed securities, financial products, etc., and provides financial intermediation services, e-commerce and other related businesses relying on Internet and other technical means.

In addition, Busen shares and related party Beijing Xinghe World Group Co., Ltd. (hereinafter referred to as "Xinghe world") intends to jointly invest 400 million yuan in self financing to set up Xi'an Xinghe network Small Loan Company Limited (provisional name, subject to approval by the registration authority).

Among them, Busen shares invested 204 million yuan, the proportion of investment was 51%; Xinghe world invested 196 million yuan, the contribution ratio was 49%.

Zhejiang Busen apparel Limited by Share Ltd and Beijing Xinghe World Group Co., Ltd. belong to the enterprise controlled by Mr. Xu Maodong, the same practical controller. Therefore, the foreign investment constitutes a related paction and does not constitute a major asset reorganization.

The Xi'an Xinghe network micro credit company, which is planned to be established by Busen, covers business scope of small and medium enterprises and personal loans, provides SME development, management and financial advisory services, and handles other approved businesses.

Among them, the loan business can be launched online through the Internet, and the offline business is limited to Xi'an only.

Industry insiders told reporters that Busen's stock pition financial technology is so fast that it is unprecedented, and that at least in one period, Busen is extremely optimistic about the prospects for the men's wear industry.

Pacific Securities analyst Liu Li also said that in the three quarter of 2016, the growth, profitability and operation ability of the men's clothing sector in brand clothing category had no obvious signs of warming. The income was constrained by slow growth or negative growth in the demand side. From the perspective of profitability, gross profit margin declined significantly, and the profit margin of men's clothing industry was limited. But the cost side control ability was strong, so the net profit margin remained at the level of 2015.

Liu Li believes that from the perspective of growth, the growth rate of men's wear sector revenue shows a trend of regional shocks, and the decline in profitability leads to a slowdown in net profit growth.

From the perspective of operational capability, inventory turnover days and accounts receivable turnover days showed signs of shortening, but the turnover days of accounts payable rose slightly and the cash cycle continued to decline.

According to the financial report, in the three quarter of 2016, Busen realized operating income of 246 million yuan, down 17.33% compared with the same period last year. Net profit attributable to shareholders of listed companies fell 232.77%, 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.

Reporters access to historical data also found that Busen clothing since its listing in 2011, its performance has experienced a short period of good, and then all the way down.

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.

Busen has said that the reasons for its poor performance are largely influenced by the environment, and that the domestic terminal apparel brand retail market has not improved significantly, and the impact of the electricity supplier on traditional physical stores is growing. The distribution of international brands in the Chinese market has further increased the competition of traditional sales channels, and garment enterprises are facing greater business pressure.

Reporters here also learned that since the second half of 2016, the growth of online channels has slowed down, and the new retail background has come off the retail regression line. At the same time, offline stores have basically completed the first round of business adjustment, which has attracted considerable attention from experiential consumer groups.

Double effect, clothing retail industry began to show signs of warmer in the three or four quarter of 2016, but the main catalysts for warming up are different. Not all consumers are active reflux. Therefore, the apparel industry in the industry has generally maintained a wait-and-see attitude in 2017.

Market participants Wang Yanru revealed that the main men's clothing category from the main department stores in one or two or three tier cities in China was investigated. The results showed that men's clothing in the first tier cities increased by 10% over the same period after the brand adjustment, and the volume and price rose. The men's clothing in the two or three line cities was not performing well, mainly due to the low consumption power of the male and the larger impact from the electricity supplier, which was a year-on-year decline.

In Wang Yanru's view, in recent years, Internet Co has used its own technology and data advantages to continuously carry out financial innovation, meticulously divide the customers, launch various differentiated and targeted internet consumer finance products, and greatly release the consumption demand of Chinese residents.

Busen shares invest heavily in Building Internet small loan companies and Internet financial asset trading centers. Busen shares said that it will rely on the company's Beijing Xinghe gold clothing Group Limited business platform, break the traditional mode, combine the core technology of financial technology, and provide services for the company's high-quality small and medium enterprises and customers.