Why Did The Rich And Noble Bird Formally Withdraw From The Market? Why Did The "Shoe King" Road Take "Oblique"?

After 3 years of suspension, the listed companies of Hong Kong stock will be eliminated in August 26th. The company started producing men's shoes in 1995. In 1998 -2012, it was awarded the first "China shoes king", "China genuine leather shoes king", "China famous trademark" and many other awards. It was listed in Hongkong in 2013. It can be stopped half of the time in the 6 years since its listing.

In the late August 24th, CCTV financial review invited the financial commentator Wan Zhe and CCTV financial commentator Liu Ge to visit the studio.

On the verge of delisting, what did fortune bird do wrong?

In August 9, 2019, the Hongkong stock exchange sent a letter to the fortune bird, telling its final listing date to be August 23, 2019, and the listing status of the stock will be cancelled at 9 a.m. in August 26, 2019. On August 21st and 22, the bird of fortune announced that it had applied to the HKEx for a review of the cancellation of the listing status of the company, and had received the HKEx's reply to accept its application on 21.

Wan zhe: in the asset bubble, swimming bubble has returned to nothing.

Financial commentator Wan Zhe: one of the biggest mistakes in the experience of rich birds is to take the asset bubble as an opportunity and plunge into it. When the bubble recedes, it will find that there is nothing in it. When it invested in P2P enterprises, it may feel that the income is relatively high, but in fact it is very blind. This situation is not just rich birds, shoes, clothing, fashion enterprises have many similar experiences, Lian Baojie such enterprises in 2008 has also expanded in many fields. Enterprises that have had such choices may face great difficulties later.

Liu Ge: riches and birds keep on doing their duty and fail to keep their duties.

CCTV financial commentator Liu Ge: in the early days of reform and opening up, many enterprises made shoes, including birds of fortune, some enterprises were the first to have brand awareness and quality consciousness. When many enterprises were still churning out quantities, they stood out. This is to stick to their duties, because the best part of the product is their duties; but slowly, some enterprises begin to take another road, for example, the listing is more appealing.

I checked that the juridical representative of Fu's bird is also a legal representative of 25 enterprises. The case of Fujian Shishi court's breach of financial contract, the bird of fortune and the fortune bird industry are the common executors in the fifty or sixty contract disputes. This is not excessive development but overmuch. Those areas that they do not understand or are good at at all will hit themselves badly once the environment changes.

Wan Zhe: the probability of turning a bird of fortune is minimal.

Financial commentator Wan Zhe: Although there is an opportunity for complaint and review, the HKEx has strict rules on delisting, with a long suspension period and a low volume of stock trading. In addition, three bonds were issued before and after fortune birds. At present, it is generally believed that they are essentially a breach of contract. And it also has many related guarantees, as well as some capital lending. In this case, the capital chain is very tight, and the chance of subsequent turnover should be minimal.

How does the company go to the "oblique" road?

Ma Li, principal analyst of textile and garment industry, deputy director of Soochow Securities Research Institute: from 2014 to 2018, the composite growth rate of shoes and clothing industry is around five percent points, and the growth rate of shoes is almost the same. However, there are differences in the interior: the part of leather shoes, such as leather shoes, has not grown or even shrunk, even though the number of head enterprises has not changed much in recent years. On the contrary, profits have shrunk because of rising costs. This situation will be difficult to change in the next 2-3 years.

The growth rate of sports category is very fast, with a compound growth rate of about 15%, and the head enterprises are even faster. Moreover, consumers are concentrating on the leading brands, and they are optimistic about the development of sports category in the next 2-3 years.

Wan zhe: consumer demand is upgrading, company management needs upgrading.

Financial commentator Wan Zhe: an interesting phenomenon is that many shoe companies are depressed. But we also see a very hot phenomenon, that is, fried shoes, a pair of shoes may sell tens of thousands of dollars, and is still trading. So there is demand in the market, but now this demand is totally inconsistent with the past understanding and imagination of shoe companies. With the changing demand of consumers and market, enterprises should keep abreast. We notice that when many private family businesses inherit the industry, the understanding of the founders often represents the understanding of the enterprises. If personal cognition is obsolete, enterprise cognition will also have problems.

Liu Ge: it is more difficult for enterprises to create brands, but they still have to face difficulties.

CCTV financial commentator Liu Ge: the explosive growth of the electricity supplier is a major challenge to the traditional consumer goods manufacturing enterprises. In the field of clothing shoes and hats, the original brand must have good design, advertising and windows, which can create the so-called high-end brand atmosphere, and then generate premium. But this road, which has been going on for many years, seems to be blocked now.

Under the impact of the electricity supplier, for many middle enterprises that are between luxury goods and bargains, they can not only persist in doing "stupid things" but also lose their market completely. This is really hard, but looking back, shoes are just needed, leather shoes also have about 4000000000 pairs of output a year, and industrial concentration is also very low.

Wan Zhe: the market has changed. Enterprise thinking must keep pace with the times.

Wan Zhe, a financial commentator, can be said to be a representative of the flourishing of private enterprises after the reform and opening up. From the first few brothers to do more and bigger; from the beginning of the main business is not clear travel companies, to focus on shoes; from buried products to the market, there is no lack of barbarism growth. But listing is a major change, which means a comprehensive docking with modern governance structure. On the other hand, changes in the consumer market need to be studied, and we can not take it for granted that young people like what they like.

Liu Ge: the decline of enterprises may be the lack of skills, perhaps because of "too big a skill".

Liu Ge, a commentator of CCTV financial commentator: the market is always going to be ebb and flow. But many companies may need to be vigilant when they collapse.

For example, when listed companies are rich, they feel that they have the ability to do what they always want to do. However, this confidence is less than the fact that they are really engaged in, and it is easy to be beautified by imagination.