Industry Analysis: Talking About The Listing Of Clothing Enterprises

The development of garment enterprises needs capital market. Through listing, a large amount of capital can be brought, and capital structure can be changed.

Listing can increase

How to enter the capital market for clothing enterprises? There are four steps in the current domestic listing process: the first step is to restructure and establish intermediaries to establish a Limited by Share Ltd through investigation, and the time is more than 6 months.

The second step is listing guidance and material production. The intermediaries conduct a comprehensive net worth survey, sign the counseling agreement, the CSRC guidance and acceptance, and the intermediaries make declaration materials.

The third step is to issue the audit. The intermediaries send the materials of the listed companies to the CSRC issuing department or the GEM board, which is examined by these two departments and the audit time is 6~9 months.

The fourth step is to issue a listing. After obtaining the approval of the SFC, the company will make a public announcement, and issue the price and issue it for 1~2 months.

We think listing is very difficult, actually it is not so difficult.

In fact, the financial indicators of listed companies far exceed the threshold.

In the past 3 years, the pass rate of audit has been as high as 80%. If the application is not approved, the application can be made again after 6 months, and the second pass rate is over 95%.

Clothing enterprises should pay special attention to Asset Integrity in listing in China.

Clothing enterprises are likely to have incomplete land use rights in production and operation places. Therefore, enterprises generally need to solve the problem of Asset Integrity in the process of auditing.

At present, the basic requirement is that if the third party site is hired, the importance of site use should be considered, for example.

At the same time, as many garment enterprises are private enterprises and their brothers and sisters are doing business together, it is very likely that there will be related party pactions.

For example, there is an enterprise in Jinjiang. The boss is a controller of a listed company. Some of his sales are sold to his sister. His elder sister manages dozens of stores. The property right of this shop belongs to his sister, and the paction between them belongs to the related paction.

The SFC's main points for auditing related pactions are neither encouraging nor prohibiting. First of all, look at the serious nature, focusing on selling related party pactions, purchasing related party pactions and developing related party pactions.

Second look at the price, third look at the procedure.

What should we do if there is a related paction? First, we need to adjust the ownership structure of the affiliated enterprises, generally speaking, we should not exceed 30%.

Or the acquisition of related enterprises, for example, the boss bought his sister's store, or his elder sister pferred the shop to others, that would solve the problem.

Besides, there may still be some financial problems in the listing of enterprises.

There are many stores in the clothing industry. The way of settlement is different from other enterprises. The sales revenue is easy to counterfeit. Therefore, in the process of audit, four aspects are paid special attention to.

One is whether the sales revenue is reasonable? Two, is the gross margin reasonable, and whether the gross profit margin is higher than that of the same industry? The growth rate is too fast. Three is the book analysis for the accounts receivable, so the enterprises should explain the bad debts in detail.

The four is to pay attention to whether the accounting policy is compliant and whether it is in line with the characteristics of the industry. Therefore, enterprises must be consistent with the same industry in accounting treatment, especially in many garment enterprises.

Finally, some suggestions for enterprises are listed: early preparation, early planning, no hidden danger and legacy.

Establish a correct listing concept, listing two development is not wrong, do not blindly operate.

Listed companies should choose the appropriate sponsor agencies, pay attention to the sponsor level and the spirit of the sponsor's business.

The chief executive of a company must take charge of himself, and the chief financial officer must select professionals.