Will Delisting Into The Delisting Finishing Period, How Did The Fabric Giant And How Did The Past "Decline"?

Customers have well-known clothing brands in China. Seven wolves, YOUNGOR, Metersbonwe, Zhuang Ji, nine Mu Wang, and Li Lang. And other international brands. Armani, Gap, POLO ... It has supplied fabrics for dozens of domestic and foreign high-end brand clothing manufacturers. Fujian Zhonghe and Limited by Share Ltd Now, however, the aura is dispersed and will move to the situation of delisting and delisting.

In May 27th, public and external announcement. It is said that after entering the delisting and finishing period, the company's stock will be delisted after 30 trading days in the delisting and consolidation period.

Printing and dyeing "legend" goes from bad to worse

Zhonghe was a legendary company.

In 1987, Xu Jinhe, a Putian native in Fujian, founded a small dyed factory, starting from the shoe upper cloth business of the small shoe industry. More than ten years later, as the scale of dyed plants gradually increased, the dyeing factory was renamed Fujian Zhonghe and Limited by Share Ltd. In 2005, at the price of about 80000000 yuan, the company acquired the leading company of Xiamen, China's Hua Lun printing and dyeing Co., Ltd.

At that time, the public has covered many fields such as printing and dyeing, weaving, and so on. 。 In October 12, 2006, they landed on the Shenzhen stock exchange. People who first came to the capital market were once favored by investment institutions. As the main high-end fabrics, the public and the gross margin of products is also higher than peers. In 2005, for example, the gross margin of public products was 19.76%, while the average gross margin of 4 listed companies was 8.94%. At that time, securities companies praised their "clear main business and steady growth in recent years" in the research report. At the same time, the broker also believes that the public and "have the basic characteristics of future growth into excellent enterprises."

But what is unexpected is that Since 2010, Zhonghe has set a net profit of 84 million 560 thousand yuan, and its performance has started to decline since then.

Relevant data show that In 2011 ~2014, the net profit was 68 million 720 thousand yuan, 41 million 470 thousand yuan, 42 million 90 thousand yuan and 13 million 340 thousand yuan respectively. With the continuous decline of performance, public and first appeared in 2015 since the listing of losses, and then continued losses for several years, failed to achieve profitability. Relevant data show that in 2015 ~2018, the company's losses were 147 million yuan, 199 million yuan, 1 billion 40 million yuan, and 573 million yuan respectively.

Total operating income and year-on-year growth rate

All over the years Net profit and year-on-year growth rate of parent company

The road of losses sustained for 4 years brought the crowd to the end of the delisting. In May 18, 2019, Zhonghe issued a notice on the termination of the company's stock market. The Shenzhen Stock Exchange announced in May 17th that it had decided to terminate the listing of the public and the stock market. Since May 27th, the public has entered the delisting and finishing period, and the Shenzhen stock exchange has delisted the shares of the company on the next day after the expiration of the delisting period. After the company's stock is terminated, it will be transferred to the share transfer system of the small and medium-sized enterprises in the whole country for share transfer.

Why is "sunset"?

It can not be denied that the public has already gone to the stage of delisting and has a glorious history. It has also occupied an indispensable position in the printing and dyeing industry. What is the reason for this famous company to move towards the present desolation?

Industry experts analysis. There are two backgrounds and reasons for the failure of Zhonghe. "In fact, in 2008, shortly after the listing, Zhonghe's printing and dyeing business was hit hard by the financial crisis. Due to external factors such as financial crisis and rising labor costs and the adjustment of industry cycle, printing and dyeing enterprises have greater difficulties in production. " Statistics show that in 2008, the net profit of Zhonghe was 33 million 970 thousand yuan, down 27.48% from the same period last year.

In 2010, although the prosperity of domestic printing and dyeing industry has picked up, Zhonghe also said in its annual report that the printing and dyeing industry has made gratifying achievements, and the output value has been growing continuously, and the business condition has improved. However, since then, the overall situation of printing and dyeing industry has been sluggish. 。 "The industry is in a doldrums, and it is hard for everyone to be independent." Insiders say.

Under pressure, the public is also seeking transformation, and the direction is the hot new energy lithium industry. However, due to environmental protection and other problems affecting lithium mines and output problems, many people want to go deep into the layout of new energy sources.

"Most enterprises do not die of hunger but die of desire." This is 360 founder Zhou Hongyi For Jia Yueting's defeat, he felt that he was right at this time.

"Many family businesses are keen on diversified investments in the name of transformation. In fact, they are a speculative mentality and take shortcuts. If the foundation is not solid, it is often a careless and total loss. The enterprises that have worked hard for decades have "many people in their hands". An industry insider said this assessment.

A lesson from the past

The industry giants of the past have become a thing of the past. The path of decline of the public is worth all the enterprises to think deeply about.

Zhonghe has also taken a series of measures to try to reverse the decline. For example, in terms of design, the company once had a provincial technology development center of more than 50 people, invested tens of millions of yuan each year to develop new varieties, and also hired the vice president of the French clothing association as a consultant to jointly develop research and development with several French companies.

In response, industry experts said: "freezing is not a cold day. Although many people have made great efforts in product development, they do not have their own outstanding advantages in product quality and new product promotion. In the era of rapid transformation, Zhonghe did not find its products and brand positioning very well. In the high-end market, the technological innovation capability of the competitors is not as good as that of the competitors in the low-end market, but also less than the price advantage of the small and medium-sized dyeing factories in Jiangsu and Zhejiang provinces.

China printing and dyeing industry association data show that In the 1~3 month of 2019, the output of printing and dyeing fabrics in scale printing and dyeing enterprises was 10 billion 344 million meters, an increase of 10.14% over the same period last year. During the period, the printing and dyeing enterprises above Designated Size realized 63 billion 885 million yuan of main business revenue, an increase of 5.65% over the same period, and realized a total profit of 2 billion 256 million yuan, an increase of 39.54% over the same period last year. The number of loss making enterprises in 1619 printing and dyeing enterprises above designated size was 459, with a deficit of 28.35%, an increase of 0.54 percentage points over the same period in 2018.

The printing and dyeing industry is becoming a fast growing paradise for those strong enterprises with excellent products. However, the fact that Zhonghe and other former industry giants are declining is telling us that in the face of fierce competition, those enterprises that are unable to adapt to market development will only wither away in this flourishing green space.