SFC Disclosure Of Several Clothing Companies IPO Is Not The Reason

Since the beginning of this year, more than ten garment enterprises have met on IPO, but only about half of them have been successful.

Recently, the securities and Futures Commission has revealed the reasons why many garment enterprises have been denied IPO. The overcapacity of the garment industry is difficult to digest, and the profitability of new stores is doubtful.

In November 2nd, the IPO of women's clothing brand ladies' house failed. The documents issued by the Commission recently explained that the construction of 322 Direct stores in the project was two years, with 161 construction each year.

To this end, the Commission considered that there is uncertainty in the market prospects and profitability of the project.

Similar problems also appeared in Fujian's Limited by Share Ltd.

The issuing committee pointed out that the reason why the company was listed was not because of the brand of Fujian, and the sales of products were mainly concentrated in the province. During the reporting period, the brand promotion fee and R & D expenses of the company were lower than those of the same industry.

The sales mode of the company is changed from direct sales to franchised sales, and the sales mode is shorter during the pition period, and the profit of newly opened franchised stores is lower than that of the original franchised stores.

It is understood that the company's application materials and on-site hearings did not fully and reasonably explain the above matters, and could not judge whether the above events would affect the company's continued profitability and whether the investment projects could have better market prospects and profitability.

In the case of a large backlog of inventory products and a decline in sales capacity of single stores, IPO tried to open new shops, which was also rejected by the Commission.

In the decision not to approve the application of Vigna S fashion Limited by Share Ltd for initial public offerings, the Commission pointed out that the operating income of the company from 2008 to 2010 was 141 million yuan, 201 million yuan and 313 million yuan respectively.

Although business revenue has increased significantly, the number of clothing sales has not increased in the number of stores from 143 in 2008 to 272 in 2010. The number of clothing sales from 2008 to 2010 is 581 thousand and 800, 603 thousand and 400 and 586 thousand and 700, respectively.

In addition, at the end of 2010, the stock grew substantially, from 38 million 160 thousand yuan at the end of 2009 to 100 million 970 thousand yuan at the end of 2010, and the stock was mainly in stock. In 2010, the inventory turnover rate was only 1.36.

More importantly, Vigna raised funds this time.

In addition, the performance of a single customer relies on a sharp rise and fall, and enterprises can not give full explanation of the situation, the Commission is also very cautious.

In April 22, 2011, the Commission issued an audit of the IPO application of the Limited by Share Ltd in Shanghai.

In the examination, the issuance examination committee was concerned that the company's products were mainly exported to the United States, Japan and the European Union.

During the reporting period, the sales revenue of the United States and the European Union declined year by year. The total sales revenue and the proportion of sales to the company decreased from 252 million 866 thousand and 900 yuan in 2008 to 59.54% yuan in 2010, to 132 million 376 thousand and 400 yuan and 20.54% in 2010. The sales revenue to Japan and the sales ratio of the company increased significantly from 82 million 322 thousand and 600 yuan in 2008 to 19.38% yuan in 2010.

Meanwhile, the gross profit margin and sales net interest rate of the main business during the company reporting period are significantly higher than those of the same industry level, and the prospectus's explanation for its reasonableness is not sufficient.