The SFC Has Revealed The Reasons Why Several Garment Enterprises Have Been Denied IPO.

The securities and Futures Commission disclosed many clothing The reason why the IPO is not available. Clothing industry Overcapacity is hard to digest, and new business prospects are doubtful.

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.

November 2nd, women's clothing brand The failure of IPO in the ladies' house has been explained in the documents recently issued by the Commission. The construction of 322 Direct stores in the project is two years, and 161 sales terminals are built each year. In the same period, the ladies house planned to expand 180 shops independently. Two years later, new stores accounted for 63%. From the average sales revenue of the single store during the reporting period, the first year of the new shop has a big gap compared with other stores, reaching 70% to 90% of other stores in second years. Therefore, whether the new store can achieve the expected sales level in 1-2 years and digest the new capacity, and whether the 180 shops that can expand independently can be built as scheduled.

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 relatively short during the spanition period, and the profit situation of the new franchised stores is lower than that of the original franchised stores. This venture investment project is mainly based on the construction of franchised stores, and the company's future expansion of the terminal stores nationwide has the risk of reducing sales efficiency.

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.

What is more important is that Vigna has raised funds to invest 277 million 70 thousand yuan to open 85 new self operated stores, and in 2010, there were 46 stores in your company. As a result of a process from opening to profitability, the number of clothing sales has declined during the reporting period, and the stock market has increased significantly at the end of 2010.

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.