Li Kailuo: A few companies are happy about the road to market

Li Kailuo: China's famous fashion industry economic research expert Guangdong Provincial Institute of Fashion Industry Economics President of Lan International Investment Consulting Co., Ltd. since Lanzi successfully landed A shares and made profits and heads at 57 times earnings, a group of the domestic market Strong performance of the advantages of apparel companies have also accelerated the pace of listing, which has shown the mountains of the Hexin Group will bring its JORYA Zhuoya, ANMANI Enman Lin six major brands intend to land A shares, reportedly annual sales of nearly 3 billion, With a profit of nearly 500 million, the capital of LVMH Group will take a stake in this group and will become a major selling point in the capital market.

A capital war without gun smoke once again opened in the clothing business. However, the market is always happy with several concerns. In the boom of the listing of the flock, we should also see that the pass rate of the IPO of clothing and textile companies in the A shares is actually not high. Prior to this, Shanghai Liburui, Shandong Shulang, Zhuhai Weisiman, Nanjing Weige Nasi, the recent Fujian Nuoqi, Shenzhen Ladies House and many other companies did not pass. According to data from BLI International Financial Research Institute, as of now, there are 19 Chinese apparel and footwear companies listed in 2011, including 4 in Hong Kong and 15 A-shares. Of the 15 A-share listed companies, 4 have been listed, 4 have already met, and 7 have been IPO-indicated.

There is no doubt that listing is a common choice for many garment companies. The fashion industry is in a golden period of development, and ** listing is the only way to achieve leapfrog development. For companies full of market enthusiasm, the IPO is undoubtedly a "lethal injury." Wissmann, Shu Lang, Li Bu Rui, Ladies House, etc., these IPO "discussions" incident, leaving us should not just talk about money after dinner, but it should be a "warning mirror."

The road to listing is not as unobtrusive as it is unprepared. The listing of apparel companies generally takes one year or even several years, and its success is limited by many external factors. At the same time, problems within the company will also affect its listing. Relative to the rationality of capital inspections, many garment companies can only use capital to describe their journeys. The short lead-time for listing and the lack of guidance from professional organizations have led to the lack of timely awareness of the lack of management mechanisms and their application for listing. Nature will expose various problems. According to past experience, the IPO of apparel companies is mainly related to seven categories of issues such as sustainable profitability, regulatory operations, financial accounting, independence, subject qualifications, use of raised funds, and information disclosure. Specifically, most of the IPOs in apparel companies are concentrated on insufficient profitability. Loss of historical business data, operational efficiency and performance, weak anti-risk capability, unsustainable core competitiveness, over-packaging, and doubtful stock ownership. Whatever the reason, the final result is the same.

For many companies preparing to sprint for listing, the game rules of the IPO are a long and painful process of transformation. If there is no plan and no preparation, only with the enthusiasm of the moment to rush, then, not only consumes our physical strength, but also in the time, the brand and other incalculable costs such as heavy losses.

It is a systematic project to identify the issuer of a partner company. Whether a company can successfully pass a issuance audit depends on many factors such as the business model, business model and competitive advantage, asset quality and profitability. The corporate governance structure, future development prospects, and the ability of companies to respond to changes in industry risks and business environment are the focus of the regulatory authorities and investors. Before a company is ready to go public, finding a good partner who understands both the industry and the capital will help the company to go public.

Before starting the listing plan in a comprehensive way, through the assistance of professional companies, systematically combing out and carefully sorting out various issues, through the comprehensive evaluation, standardizing the restructuring of the quasi-capital operation, improve the company’s understanding of the capital market, effectively solve the problems left over by history, and know how to choose Intermediary agencies, whether to introduce strategic shareholders, etc. In addition, through the quasi-capital operation of professional companies, the company can help companies improve their valuation in aspects such as brand operation, marketing channels, model construction, and capital investment, and organically combine brand building, channel construction, model construction, entity operations, and financial measurement. Together, on the basis of standardized development, actively introduce strategic investors, rationally determine the method, location, and timing of ** listing, ensure that project companies grow rapidly in the industry competition to achieve capital value, meet the challenges of the capital market, and create a good The internal and external environment is obviously beneficial to the listing of apparel companies.

At the moment, more and more apparel companies have begun to realize the importance of capital operation. Many companies that are going to be listed have introduced professional teams in advance to legally and financially sort out and standardize companies, helping companies (brands) The quasi-capital period really enters into capitalized operations, which is undoubtedly a good win-win road for capital and many brand enterprises.