6 textile enterprises fell in front of the audit committee

From February 1, the China Securities Regulatory Commission requested that the IPO company's pre-disclosure time be changed from the sponsoring hearing five days in advance to one month in advance. Pre-disclosure of the New Deal Since the implementation of the New Deal for more than four months, there have been numerous examples of listed companies going to the front of the auditing committee.

In the textile and apparel industry, six listed companies, including Haishu House, have been subject to the termination of censorship decision by the lending committee and have temporarily missed the IPO feast. Some textile and apparel industry analysts stated to the author: “Because inventory is too high, the inventory turnover rate is low, that is, the inventory cashing ability is poor, which makes it difficult to determine sustainable profitability. This is the main reason why textile and apparel companies fell to the front of the audit committee. ”

In fact, because the textile and apparel industry has not attracted sufficient attention from capital, the intervention cost is very low and the risk is relatively low. Once the company expands through capital intervention, its return on investment will be much higher than that of the high-tech industry. It can be said that the rejection of the six IPOs sounded the alarm, but it also boosted investor confidence in the securities market. If the listed companies in the textile and apparel industry go through the IPO in a down-to-earth manner, subsequent developments will surely make other industry companies stand up.

Six textile companies could not stop issuing pre-disclosed new government for more than four months. The public's attention to listed companies has been significantly strengthened. The disclosure of most company's prospectus has immediately led to the indiscriminate bombing of the market.

According to the data released by the China Securities Regulatory Commission last week, since the IPO pre-disclosed the New Deal for more than four months, 35 enterprises have been successively lodged at the entrance of the auditing committee, and the review has been terminated. Including 10 companies to be listed on the Main Board and 25 companies to be listed on the GEM.

The IPO of textile and apparel companies has been frequently rejected since last year. According to public information, only 5 of the 11 IPO apparel companies last year met. The companies that have been listed this year are Xingye Technology (listed on May 7), Aokang International (listed on April 26), and Kanudi Road ( Listed on February 28). The six companies including Shandong Shulang, Nanjing Weige Nasi, Shanghai Li Bu Rui, Zhuhai Weisiman, Fujian Noci, and Shenzhen Ladies House were all denied. Nanjing Vignas, previously denied, is currently waiting for the second time for the Securities Regulatory Commission. At present, there are 11 IPO apparel companies, including Haishu Home, Jiangsu AB Group, and Jinbian Rabbi Baby & Baby Products. , Shanghai La Chapelle costumes, Zhejiang George White costumes, elegant birds, Jordan sports and so on. However, with the exception of Zhejiang George White, Birdie and Jordan Sports who have passed the review conference, the Hometown of Haishu has been denied, and most of them are implementing the feedback phase.

One month in advance disclosure of vulnerabilities The IPO was rejected. Each company had different reasons. “In the past, as long as the advance disclosure was conducted five days in advance, and even if it was disclosed on the weekend or even less than five days, one month in advance, the vast majority of the listed companies would be singled out for some problems. ** More detailed supervision led to the batch The company fell outside the IPO, and both the company itself and the sponsor institution have obviously felt the pressure since the pre-disclosure of the New Deal. Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, said.

It is precisely because of advance disclosure of pre-disclosure that is more forceful. The company's problems have been exposed by the media. The most significant issue is the company's ability to continue to grow.

Hailan home: inventory in trouble many industry analysts attributed it to poor IPO time point, and in the investment adviser IPO consulting analyst QI Qinchuan view, the key reason is that the inventory is too high, the inventory turnover rate is low That is, the ability to realise inventory is poor, leading to continuous profitability is difficult to judge.

According to statistics, the inventory of Hailan House was 1.305 billion yuan, 1.693 billion yuan, and 3.863 billion yuan from 2009 to 2011, with an average annual compound growth rate of 61.37%. In 2011 inventory accounted for 56.82% of assets, while Seven wolves in the industry accounted for only 395 million yuan, accounting for 16.23% of the total assets. Dayang created 11.92%. From the inventory turnover rate, in 2010, Haishu's home was 0.88, which was more prominent than the 5.53 Dayang Genesis, the 1.84 Annunciation, and the 3.68 of the Seven Wolves.

With regard to the problem of weak sales capacity, outstanding inventory problems, low inventory turnover, and weak liquidity, Haishuzhijia admitted in the prospectus that the increase in stores directly led to a rapid increase in inventory size, excluding new stores opened in each year, and old stores. The inventory turnover rate is significantly higher than the overall inventory turnover rate. From the end of 2009 to the end of 2011, the number of its stores was 903, 1389 and 2,096 respectively, and the corresponding inventory quantity was 13.03 million, 17.25 million and 33.93 million pieces respectively. During the reporting period, the average annual compound growth rate reached 61.37%. The faster the expansion, the greater the increase in stocks, which seems to have become a stranger for apparel brands.

Fujian Nuoqi, Ladies House: Expansion is difficult as the Fujian Nuoqi and Ladies House starting is otherwise the company's future expansion of the terminal stores nationwide, there is a risk of reduced sales; the current investment project's market prospects and profitability is uncertain.

The review and appraisal committee noticed during the audit that Fujian Nuoqi Co., Ltd. had the following situations: Fujian Nuoqi established the Noqi clothing brand in 2004 and its product sales were mainly concentrated in Fujian Province. The company’s brand promotion fees and R&D expenses were lower during the reporting period. Listed companies in the same industry. The sales model of the company changed from direct sales to franchised sales. The sales model has a shorter transition period and the newly opened franchise profitability is lower than that of the original franchised stores. This fundraising project focuses on building franchise stores and the company’s future. Expanding terminal stores nationwide has the risk of reducing sales efficiency. The application materials and on-site hearings of Fujian Nuoqi Co., Ltd. did not provide sufficient and reasonable explanations for the above matters, and it was impossible to judge whether the above-mentioned issues had an impact on the company’s sustainable profitability and whether the fund-raising projects had a better market prospect and profitability.

The Ladies House prospectus (submission draft) disclosed that the estimated construction period of the 1.95 million garment home textile production projects of the company in this fundraising project is two years, and the production capacity has doubled from the current production capacity of 1.7 million units. After two years, the company had a total of 3.65 million independent production capacities, and its own production capacity satisfaction rate was 52.09%. The company's production capacity was dominated by directly operated stores. In addition, the construction period of 322 directly-operated stores in this fund-raising project will last for two years, and 161 sales terminals will be built each year. In the same period, the company plans to independently expand 180 stores. The new stores built after two years accounted for 63%. From the average single-store sales revenue during the reporting period, the first year of newly opened stores has a large gap with other stores, and it reaches 70% to 90% of other stores in the second year. Therefore, whether the newly opened stores can reach the expected sales level within 1 to 2 years and absorb new production capacity, as well as whether or not 180 stores that can expand autonomously can be built on schedule.

Shandong Shulang: High debt ratio is not lower Shandong Shulang admitted in the prospectus that he was “very poor”. From the perspective of asset-liability ratio, Shandong Shulang is not ideal. The average asset-liability ratio of the apparel industry is 35.97%, but Shandong Shulang is as high as 72.78%, more than twice the average, and the solvency is weak. From the development trend of Shandong Shulang in recent years, the situation has become more and more serious, and the asset-liability ratio has maintained a substantial increase. From 2008 to 2010, the asset-liability ratio was 66.17%, 66.94%, and 72.78%, which increased year after year. Repayment ability is the worst in the industry. In this regard, Shandong Shulang admitted in the prospectus that solvency is poor, indicating that the high debt-to-asset ratio is that Shandong Shulang has not yet been listed, resulting in a single channel.

Shanghai Rebuy: The analysis of competitiveness is difficult and sustained. It is found that the superior profitability of Liburui is to a large extent related to the huge export tax rebate it enjoys. From 2008 to 2010, Rebirth received a total of 66.3%, 46.4%, and 55.9% of the tax return cash. And, with the rapid growth of operating income, the amount of government tax refunds received by Rebecca has not changed very regularly. In 2009, the company’s operating income increased by 12.9% year-on-year, while the return on value-added tax rebates received by the company was down by nearly 1% year-on-year. By 2010, the company’s operating income increased by only 35.3% year-on-year, but the revenue received was refunded. But it increased by 50%. Analysts said that the unusual changes in tax returns made it difficult to disregard financial data. Once there is a major change in export tax rebate policy, whether the sustainable performance of the company's super profitability persists is unknown.

Zhuhai Weisiman: "Protecting for short-circuiting" does not impose a limitation on the issuance of an IPO review by Zhuhai Weisiman. The reason is that the issuance committee has received report materials. The material shows that in 2002, Wissman had more than 1,200 franchisees in the pre-IPO market, and the actual controller’s sweater brand was once more than 100. Subsequently, these franchisees almost all suffered operating losses. Forced to close, these brands have disappeared. This part of the content is in stark contrast to the continuous growth of the company's nearly three-year performance stated in the prospectus. According to Wissman's disclosure in the prospectus, the company's listing of funds to raise funds for 284,788,500 yuan, of which 200.5 million yuan will be used in 17 provinces and cities in the country to add 171 Wissmann brand stores.