Better Spanformation And Upgrading Helps Convertible Bonds Become A New Tool For Garment Enterprises To Refinance.

Since the beginning of this year, the A share market has been warming up through the issuance of convertible bonds.

Under such circumstances, convertible bonds have gradually become a common means of refinancing of apparel listed companies.

Search for special issue of convertible bonds and supply chain management

In April 15th, search special issued a public offering of Switching Company bond plan. The proposed fund raising fund does not exceed 1 billion 100 million yuan for the fashion industry supply chain headquarters (phase I) project and share repurchase project. The fashion industry supply chain headquarters (phase I) project intends to use the fund-raising fund of 800 million yuan, and the share repurchase project is intended to use raised funds of 300 million yuan.

In the announcement, he said, the fashion industry supply chain headquarters (phase one) project plans to add intelligent warehouses, general warehouses, comprehensive buildings and other supporting infrastructure. The company has introduced ERP system in management, to complete the order management, project management, procurement management, order issuance and other business processes. After the project is constructed, the intelligent storage system will dock with the existing ERP system. The intelligent warehouse system can predict product demand and supply, optimize inventory management, reduce leakage in the process of spanaction, and reduce leasing cost and labor cost in all locations around the company. The project is located in the land owned by Guangdong Mei Yi Da Supply Chain Management Co., Ltd., located in Dongguan, Dao Kau Town, Nan Ge, Zhou Zhou island. The plot area is 207.73 mu, and the project land is 106.67 mu.

Search for the 2018 annual report shows that the company achieved operating income of 18 billion 519 million yuan in 2018, an increase of 0.93% over the same period, and realized a net profit of 369 million yuan attributable to shareholders of listed companies, down 39.72% from the same period last year. One of the reasons for the change in performance is the company's development of supply chain management business. With the change of market environment, the company slowed down its growth rate. In the fourth quarter, the supply chain management of the company decreased compared with the same period last year. However, as the supply chain management business grew faster in the first half of the year, the supply chain management business increased by 4.09% over the same period last year, and supply chain management remained the main source of revenue and profit for the company.

In June 6th, search announced that the issue of convertible bond application was accepted by the SFC, which still needs the approval of the SFC. There is still uncertainty about whether it can be approved.

Tian Chong fashion intends to issue convertible bonds to build intelligent manufacturing base.

In May 30th, women's shoes enterprises launched a fashion announcement to issue a notice on the convertible bond program of the A company, which adjusted the company's original plan. Before adjusting, the company planned to raise funds of not more than 600 million yuan, all invested in intelligent manufacturing base construction projects, repurchase shares and supplementary working capital. After adjustment, the company plans to raise funds of not more than 600 million yuan, and will invest in intelligent manufacturing base construction projects and replenish liquidity. The announcement shows that the total investment of the intelligent manufacturing base construction project is 930 million yuan, and the proposed fund will not exceed 520 million yuan. The project will be built for 4 years. It will purchase 4 new automated intelligent production lines and 4 flexible production lines by purchasing FMSS automatic flexible production line, RSA Robert automatic data acquisition system, intelligent leather cutting machine man and other equipment. The aim of the project is to break through the limitation of production capacity and increase the proportion of self production, so as to resist the impact of future production costs, foreign suppliers' failure to supply products in time and quality defects.

The 2018 annual report shows that the company achieved a profit of 2 billion 52 million yuan in 2018, an increase of 18.37% over the same period last year. The net profit attributable to shareholders of listed companies was 242 million yuan, up 28.87% over the same period last year. According to the annual report, there are a total of 1925 brand stores in the offline market as of December 31, 2018, including 1377 direct battalions and 548 stores. Compared with the shops at the end of last year, there were 91 new outlets and 93 outlets. The company has upgraded its production line and launched the first large-scale intelligent production line in 2018 and has been put into operation. In 2019, the company plans to increase the proportion of sports and leisure products, and develop a user centered community operation mode.

Vigna S issues convertible bonds to invest in intelligent information spanformation

In February 14th, the company issued a notice of convertible bonds listing, and the convertible bonds were listed on the Shanghai Stock Exchange in February 19th. The convertible bond will be raised 746 million yuan, and the net amount will be 725 million yuan. It will be used to pay for the acquisition of Teenie Weenie brand and the related assets and business items of the brand, intelligent manufacturing, intelligent retail and supply chain collaborative information platform and supplementary liquidity. Among them, 461 million yuan will be used for Teenie Weenie brand projects, 155 million yuan will be used for intelligent information spanformation, and 130 million yuan will be used to supplement liquidity.

Fund-raising announcement shows that intelligent manufacturing, smart retailing and supply chain collaborative information platform project will invest 363 million yuan for enterprise intelligent manufacturing construction, ERP&DRP system upgrading, O2O platform, big data analysis, intelligent logistics and related infrastructure support facilities. According to the announcement, the traditional clothing industry has a long industrial chain, many industrial departments, and slow market reaction, while garment consumers have strong demand for fashion and personalization. Intelligent technology can realize flexible spanformation of design, R & D, manufacturing and supply chain management.

Vigna S's 2018 annual report shows that the company achieved operating income of 3 billion 86 million yuan in 2018, an increase of 20.34% over the same period last year, and realized a net profit of 273 million yuan attributable to shareholders of listed companies, an increase of 43.65% over the same period last year. The company has three women's clothing brands, namely, Nanjing brocade "Yuan Qian" brand, a high-end brand VGRASS brand located in high-end women's clothing and a "TEENIEWEENIE" brand positioned in high-end casual wear. By the end of 2018, the company had 1386 stores, 63 fewer than 2018 at the end of the year. Vigna S said that the VGRASS brand invested in the "micro mall" online channel and tried to use the online channel to try O2O mode.

Vigna S announced in June 20th that the company has completed the registration of industrial and commercial changes, and has obtained the business license issued by the Nanjing municipal market supervision authority. The name of the company has been officially changed to "Jinhong fashion group Limited by Share Ltd". The company's securities abbreviation will be changed from "Vig Nash" to "Jin Hong Group" in June 26, 2019.

Wanlima intends to issue convertible bonds for smart manufacturing upgrade

In May 30, 2018, Wanlima issued a public offering plan for Switching Company bonds. The total amount of funds raised is not more than 180 million yuan. The capital raising investment project is "intelligent manufacturing upgrading project", "R & D center upgrading project" and "information upgrading project". Among them, the intelligent manufacturing upgrading project will be invested in 128 million yuan.

The announcement said that the intelligent manufacturing upgrading project is going to carry out intelligent upgrading and upgrading of the existing 3 production lines, and build 2 intelligent production lines. The informatization upgrading project is going to upgrade the company's information system on the basis of the company's existing ERP system and OA system.

Up to now, Wanlima's issuance of convertible bonds is still in the stage to be approved, and there is still uncertainty about whether it can be approved. Wanlima announced in May 30, 2019 that the company intends to extend the validity period and authorization period of the public offering convertible bond general meeting resolution to June 14, 2020.

Wanlima's 2018 annual report shows that the company achieved operating income of 693 million yuan in 2018, an increase of 14.77% over the same period last year, and realized a net profit of 37 million 797 thousand and 300 yuan attributable to shareholders of listed companies, an increase of 1.25% over the same period last year. The company expects the net profit of shareholders belonging to listed companies in the first half of 2019 to be 12 million 810 thousand and 300 to 14 million 30 thousand and 300, up 5% to 15% over the same period last year. The company said that in the first half of 2019, the company's operating revenue continued to grow compared with that of last year. The company's subsidiaries acquired excellent performance and the net profit attributable to shareholders of listed companies increased compared with the same period last year. It is estimated that the impact of the non recurring gains and losses on net profit of the company in the half year of 2019 is less than 100 thousand yuan, mainly from the government subsidy funds and inventory surplus received by the company.

Convertible bonds have become a new tool for garment enterprises to refinance.

In addition to the above several clothing enterprises that are applying for or issuing new convertible bonds, in July last year, Hai Lan's home raised 3 billion yuan to issue convertible bonds, and the proceeds would be invested in the upgrading project of the industrial chain information, the construction of logistics park and the building of Aju rabbit R & D office building. Among them, the company's industrial information chain upgrading project plans to invest 620 million yuan, including the construction of 5500 stores' intelligent service system, and the "precision marketing system" including 1000 stores. The logistics park construction project plans to invest 1 billion 950 million yuan and the oju rabbit research and development office building plans to invest 430 million yuan, to support the company's electricity supplier and women's clothing brand love rabbit business development.

Combing the current situation of refinancing of convertible bonds issued by garment enterprises, we can find that this year's clothing enterprises can not reduce the issue of convertible bonds, even more than last year, which is also consistent with the financing situation of convertible bonds in the capital market. According to media reports, the turnover of convertible bonds in the first 5 months of this year increased by 186.11% compared with the same period last year. It can be said that convertible bonds have become a major means of refinancing A share companies. For apparel listed companies, convertible bonds have also gradually become the "new favorite" of corporate refinancing.

However, after all, convertible bonds are only a tool for refinancing, which is a choice or outlet for the financing channels of clothing enterprises, and the purpose of financing is more noteworthy. At present, the issue of convertible bond financing by clothing enterprises is mainly used to increase the development of main businesses or supplement liquidity, and is also concerned about some "new" business development directions. For example, almost all garment enterprises mentioned in the preplan of issuing convertible bonds that they should develop new manufacturing and new retail projects such as intelligent manufacturing, intelligent logistics, intelligent stores, such as the intelligent manufacturing base of Tian Chong fashion, invest in intelligent warehouses for special plans, invest in intelligent manufacturing and intelligent retail projects, Wanlima intends to build intelligent production lines, and sea LAN homes to build smart stores.

In general, convertible bonds, as a financing tool, will also have a cooling down or "callback" when heating up. We should see that while some enterprises are allowed to issue the convertible bonds, some enterprises are still waiting for the audit of the regulators or choosing to withdraw or terminate the convertible bond plans. In the long run, it is more likely to get the recognition and favor of the capital market to correct the issue of "motive", reasonably design financing projects and raise the efficiency of financing funds, and help the garment enterprises to better upgrade.