There Are Several Worries About The Listing Of Clothing Companies.

Karol Lee

Economic research expert of China's famous fashion industry

Guangdong Province

Dean of the Institute of Industrial Economics

President of Bi LAN International Investment Consulting Co., Ltd.

Since landfall successfully landed on A shares and made the best of the 57 times earnings ratio, a number of strong clothing companies in the domestic market have also accelerated the pace of listing. Among them, the Hsing ho group, which has already seen its name, will carry its six major brands, including JORYA Zhuo ya, ANMANI nelman, etc., to A A shares. It is said that its annual sales volume is close to 3 billion, and its profit is nearly 500 million. LVMH group's capital stake in the group will become a major selling point of the capital market.

Prior to the Shanghai Li Rui, Shandong Shu Lang, Zhuhai weman, Nanjing Wenger, recently Fujian Nash, Shenzhen lady house and many other enterprises have not been approved.

According to data from the blue international financial securities research institute, as of now, 19 of the 2011 Chinese clothing and footwear enterprises are listed, including 4 in Hongkong and 15 in A shares.

Of the 15 A share listed companies, 4 have been listed, and 4 have been listed, and IPO has not reached 7.

There is no doubt that listing is the common choice of many garment enterprises.

Fashion industry is in a golden period of development. Listing of financing is the only way to achieve leapfrog development.

For companies full of enthusiasm for listing, IPO is undoubtedly a "fatal injury".

Wiseman, Shu Lang, Li Rui, lady house and so on, these IPO "crashed" events left to us should not just talk after dinner, but should be a "warning mirror."

Never fight a war without preparation.

The road of listing is far from being so unimpeded. The listing of clothing enterprises usually takes a year or even a few years, and its success is limited by many external factors.

At the same time, the internal problems of enterprises will also affect their listing.

Compared with the rationality of capital inspection of enterprises, many garment enterprises can only describe the journey of capital in a vacant way. The preparation time of listing is short and the guidance of professional bodies is short, which leads to their lack of timely recognition of the omission of management mechanism, and naturally exposing various problems in the process of applying for listing.

According to past experience, the IPO of garment enterprises is mainly related to seven major problems, such as continuous profitability, standardized operation, financial accounting, independence, subject qualification, fund-raising application and information disclosure. In particular, most of them focus on such aspects as insufficient profitability, missing historical operation data, inconsistency between operational efficiency and performance, weak ability to resist risks, continuous core competitiveness, excessive packaging, and doubtful stock ownership.

Whatever the reason, the final result is the same.

For many companies preparing to sprint, IPO's rules of the game can be regarded as a long and painful process of evolution.

If there is no plan, no preparation, only to rush ahead with the enthusiasm of one time, then it will not only consume our physical strength, but also lose a lot of money in terms of time, brand and other inestimable costs.

Identify partners

The issue and listing of enterprises is a systematic project.

Whether enterprises can successfully pass the issuance audit depends on many factors, such as business mode, business mode and competitive advantage, asset quality and profitability.

The company's governance structure, the future development prospects, and the ability of enterprises to cope with the risks of the industry and the changing of the operating environment are all the focus of supervision departments and investors.

Before enterprises are ready to go public, they can find a good partner who knows both the industry and the capital.

Before fully launching the listing plan, we can systematically sort out and clean up all kinds of problems through the assistance of professional companies. Through comprehensive assessment and standardized reorganization of quasi capital operation, we can improve the understanding of the capital market, effectively solve historical problems, know how to choose intermediaries, and introduce strategic shareholders.

In addition, through the quasi capital operation of professional companies, it helps enterprises improve their valuation level in terms of brand operation, marketing channels, mode construction and capital investment. It integrates organic brand building, channel construction, mode construction, entity operation and financial measurement together. On the basis of standardized development, it actively introduces strategic investors, reasonably determines the mode, place and timing of financing listing, ensures that project enterprises grow rapidly in the industry competition, realize capital value, respond to the challenges of capital market, and create a good internal and external environment, which is obviously beneficial to the listing of garment enterprises.

At present, more and more clothing enterprises have begun to realize the importance of capital operation. Many listed companies have introduced professional teams in advance to comb and standardize enterprises in law and finance, and help enterprises (brands) really enter capital operation in the quasi capital stage. This is undoubtedly a good win-win for capital and many brand enterprises.