The IPO of clothing companies is difficult to break

Li Ning issued a performance warning announcement on the evening of the previous day. It is expected that the profit for the first half of the year and the whole year will fall sharply. Its rival ANTA also had a double-digit decline in orders in the fourth quarter of 2012.

On the one hand, the sporting goods industry is at the bottom, and enterprises issue profit warnings, and the number of orders is on a downward trend. On the other hand, many apparel companies are actively queuing IPOs. Although the IPO of apparel companies has been frequently rejected since last year, it has not affected the enthusiasm of garment enterprises to seize the capital market.

The sporting goods industry is still at the bottom. Li Ning issued a performance warning announcement the evening before yesterday. The company's annual orders recorded a high unit number decline, and it is expected that the profit for the first half of the year and the full year will fall sharply. Its competitor Anta also issued the same voice and has been verified at its May ordering meeting. Anta recorded a double-digit decline in orders in the fourth quarter of 2012, and the total order volume for the annual sales fair recorded a year-on-year decrease in high single-digit percentages. Yesterday, Li Ning fell 8.056%, Anta fell 3.328%.

Li Ning’s latest announcement stated that the ordering meeting in the fourth quarter of this year has been completed, and the amount of orders recorded a high double-digit decline, with double-digit declines in the amount of orders for footwear products, and low average retail prices and order quantities, respectively. Number and low double-digit decline. In terms of apparel, the order amount recorded a drop of more than 20%. Its average retail price and order quantity recorded a low single digit and a drop of more than 20%.

The person in charge of Li Ning said that since the beginning of this year, the competition in the sporting goods industry has become more fierce, and the discount sales efforts have been further increased, while the pressure on destocking at the retail end has remained severe.

The low threshold makes garment companies A-shares IPO frequently been driven by brand upgrades. Apparel companies have a high market enthusiasm, but it seems difficult to impress the market and regulators with enthusiasm alone. In May, the China Securities Regulatory Commission's Approved and Appeal Committee rejected the listing application of Haicang House Apparel Co., Ltd. According to the data, in 2011, garment enterprises became the hardest-hit areas for the A-share IPOs. Six clothing companies applied for IPOs were denied, and the rate of passing-out meetings was only 45%.

Analysts in the industry believe that the apparel industry itself has a low threshold and has a lot of mixed forces. Many companies do not have the core competitiveness of listing, and lack the stamina to sustain continuous growth; in addition, the core competitiveness of branded apparel is more of soft power and it is difficult to manage This is fully reflected in the data, which also makes it difficult for regulators to judge their value. For the listing application of this type of company, the supervisory department must also maintain a cautious attitude and select the best support for listing.

In the first quarter of 2012, the overall performance of the textile and apparel companies listed on the A-share market was clearly declining. Data show that the textile and apparel industry achieved a net profit of 2.647 billion yuan in the first quarter, a year-on-year decrease of 11.17%, a decrease of 15.51% compared to the previous quarter, and it was a declining performance for two consecutive quarters. From the operating income point of view, the textile and apparel segment realized operating income of 40.27 billion yuan in the first quarter, a decrease of 5.822 billion yuan, a decrease of 5.89%, this indicator has also been a two-quarter decline. In addition to poor performance indicators, garment companies are also facing high inventory, overcapacity, high property rental costs, and exports remain sluggish.