Zhejiang Senma Co., Ltd. – Clothing IpoEssay Preview: Zhejiang Senma Co., Ltd. – Clothing IpoReport this essaySenma clothing “IPO” three high case analysisFirst, the reason for the topicSince the reform of the new share issuance in 2009, the three-high IPO phenomenon has been a difficult problem in the supervision of the securities market. The “three highs” phenomenon refers to: high pricing, high price-earnings ratio, and high-paying. According to the statistics of Wind database, from June 2009 to September 2010, the IPO issuance price, the price-to-earnings ratio and the over-raised funds of Chinas main board, small and medium-sized board and GEM market showed a “stepped” upward trend. The average IPO of IPO of 128 companies on the GEM is 66 times, the over-raised funds are 57.398 billion yuan, and the over-raised ratio is 210%. The average IP-to-earnings ratio of IPOs of 211 companies in small and medium-sized enterprises is 51 times, and the over-raised funds are 102.102 billion yuan. 140%. Although the government has been working to reduce or eliminate the “three highs” phenomenon, the 22 companies that completed the reform from November to mid-December have not seen good results. The average price of new shares is 30.30 yuan, and the price-earnings ratio is 67.40. Times, the funds raised were 33.858 billion yuan, and the excess amount reached 124%. Before and after the comparison, the three-high phenomenon has not been significantly improved, and even more and more intense. This article is a case study paper, select the case of Senma apparel IPO, which is the listed company with the highest IPO price and the most over-raised IPO in the first half of 2011. Its issue price is 67 yuan, it is estimated that the raised funds will be 2.056 billion yuan, the actual raised funds will be 4.69 billion yuan, and the over-raised funds will reach 2.734 billion yuan. The purpose of this paper is to analyze the reasons for its existence, and put forward relevant suggestions from the system, issuer and regulatory agencies, to provide some reference for the improvement of the future new share issuance system, and to provide reference for investors investment choice.
Second, the company introductionZhejiang Senma Co., Ltd. is a brand clothing company, which is mainly engaged in the business of adult casual clothing and childrens clothing. The company holds two major clothing brands, namely “Senma” and “Balaba”. “Senma” is one of the most important clothing brands in China. It has a leading position in the leisure apparel industry. It was established in 1996 and has won many honors, such as Chinas well-known trademarks and national inspection-free products. Its “Balaba” was founded in 2002 and has won the advantage of the childrens clothing brand. It is also one of the first brands to be listed on the brand list of childrens wear brands. In the business model, Senma adopts a virtual production strategy. In the horizontal development, the Pearl River Delta, the Yangtze River Delta and 160 manufacturers in Shandong and Hubei have been integrated. In the depth development, the garment industry chain has been vertically integrated to make the supply chain system more efficient and responsive. In terms of marketing methods, the advocacy terminal is the best brand communication channel, expanding sales outlets, and has formed strategic partnerships with many institutions at home and abroad. In product
In terms of brand awareness, the combination of McKinsey has enhanced the brands influence in many aspects, such as product reputation, consumers, visual effects, and external image.
In March 2011, the first price of Senma clothing hit a new high of 67 yuan/share. The price-earnings ratio disclosed in the Prospectus was 44.97 times (after issue) and 40.12 times (before issue), and the share capital before and after the issue was 600 million respectively. Shares, 670 million shares. According to the estimated 670 million shares after the issuance, its market value is 44.89 billion yuan, which is ahead of the US$3,842 million and Youngors 2,057 million, occupying the top of the apparel industry. However, the first break of the listing broke, falling 7.3, after which the stock price of Senma apparel began to decline gradually. According to the financial statements, the net profit for the year after the listing of Senma apparel was 761 million yuan, which was 37.78% lower than the 1.23 billion yuan in the year of listing. In 2013, Senma Apparel acquired the high-priced M&A in the company with its high-end fundraising plan, but ultimately failed.
The Chairman: Toshiaki Aoshi, Chief Information Officer.
Mr. Aoshi is Chairman of FUSI (Fiscal, Stock-Based Investment Agency) (Yonhap), along with a handful of investors and their families. At the same time, he serves as vice chairman and former chief operating officer. He also has a large international investment fund (in China he was part owner). He has held other public positions and companies. For many years, he became chairman and a shareholder in an entity that also holds FUSI. To achieve his international objectives, Mr. Aoshi holds an A-B (Comprising Securities Act) that provides direct control over all assets of the financial institution. For FUSI’s share-based investment, Mr. Aoshi holds a certain amount of the board’s holdings, including stock, shares, or a combination of such holdings.
Mr. Aoshi also plays a role for China’s state-owned enterprises. A long-term investor in K-Wave, BHV Global Investment Co., was one of a dozen people who participated in the shareholder meeting in January 2013 on the topic.
In addition to his direct control over FUSI, Mr. Aoshi also has a role in China’s state-owned media industries. FUSI is the state’s most prominent channel (based at various stages of the economy) of public discussion and information media. More than six of the seven media organizations named by government documents were not on an active campaign in the national media. However, Mr. Aoshi is one of many individuals who held a position in the state media that had become public on September 3, 2013. To help ensure transparency and fairness in the market, Mr. Aoshi has been providing media owners with an unprecedented exposure to the new industry. The new media are expected to be as influential as the old ones. They may include state-owned broadcasting companies, state-owned media and state-owned news outlets. In 2014 his influence extended to the largest commercial television distributor in China, the state-owned China Media Network Company (CNPC), which is under the administration of Haoji and Mr. Aoshi and his family members.
Mr. Aoshi and his extended family are members of Mr. Sohn Sohn family company. From 1995 to 2009, the Sohn family held a large stake in China’s state-owned network network CNPC, which owns the Xinjiang news network Xinha. After Mr. Aoshi’s departure from CNPC, the Sohn family invested in two state-run media companies in early 2014, Yishan Press and Xingsha. (Yishan launched Xingsha in 2012 under a deal led by senior chairman Haidian Peng, a founding shareholder of Yishan, Jidong Li. Jidong Li is the senior chairman of FUSI and owns five state-owned companies.)
