Industrial Textile Enterprises Consider Financing Channels Under The Most Stringent Review System

It is known as the strictest in history since this year Issuance and review system More than 268 enterprises have terminated the review, including Zhejiang Guxiandao New Material Co., Ltd., Suzhou Longjie Special Fiber Co., Ltd. and other industrial enterprises spin Product enterprises. The CSRC has not yet conducted the second batch of spot checks on the list of listed companies, and 666 enterprises to be audited still need to undergo the financial test of the semi annual report. More enterprises in the industry are waiting in line and even wandering outside the door.

From this round IPO In terms of various reasons for river closure, the decline in performance, substandard environmental protection and poor growth are the more concentrated reasons. The industrial textile enterprises in the high added value areas of the industry were once considered as the sub sectors that could easily pass the listing review, have a large space for the stock price to rise, and have a market value potential that should not be underestimated. This time, it is a warning that many companies have returned empty handed. Now these enterprises, after a painful period of reflection, begin to make targeted rectification and prepare for the final sprint.

At the same time, some industrial textile enterprises are making long-term plans for entering the capital market in 5-8 years. What they see is the convenience of financing channels brought by listing, and the convenience of employee income and company value evaluation brought by public stock pricing. In addition to contacting with private equity investment and other investment institutions, they are also cultivating new products and new markets in hot areas consistent with policy guidance, such as recycling of waste fiber, self-sufficiency of domestic high-performance fiber, etc.

What is worth thinking about is that there are also a number of industrial enterprises that are completely unmoved by the bait of listing. Compared with their values and happiness of operating enterprises, the so-called management norms brought about by listing are nothing more than passivity and restraint. Regardless of the high cost investment before and after listing, they are more afraid of being attacked by hostile acquisitions. It cannot be denied that there is a lack of vision and awareness of industrial textile enterprises behind this. They have not found a good fit between the accumulation of enterprise assets and the accumulation of social wealth. Of course, it does not exclude the risk factors hidden from the lack of strict governance of the capital market itself.

01 The huge performance gap led to the clearing equity of ABC International

Jiangsu Hengli Chemical Fiber Co., Ltd. has been on the IPO journey for a long time, and has recently accepted the listing environmental protection inspection publicity. The company's internal signs were all changed to "Hengli Shares", and two shareholders' meetings were held. However, due to too many enterprises queuing up for IPO, PE began to seek to withdraw from the Pre IPO market. The original shareholder of the company, ABC International, publicly listed its shares at the end of last year. In addition, the company also plans to issue 400 million ordinary shares in RMB for the construction of "functional differential fiber project" and "composite fiber project".

Before the restructuring and listing, the company had only two shareholders, Jiangsu Hengli Group and Hong Kong Dechengli International Group. Since the company sought listing, a pile of PE has entered as strategic investment. In addition, the industry in which the company operates was in a downturn last year. According to the financial data, as of October 31, 2012, the net profit of the company was only 221 million yuan, while the net profit of 2011 was 1.3 billion yuan. Such a depressed market and huge performance gap may be the reason that ultimately impels the equity of ABC International clearance company. ——Wen Hao, Deputy General Manager of Jiangsu Hengli Chemical Fiber Co., Ltd

02 Rejected listing due to some indicators of environmental protection verification not reaching the standard

The name of Zhejiang Guxiandao New Material Co., Ltd. has been officially changed to "Zhejiang Guxiandao New Material Co., Ltd.", and it has become the first foreign-funded joint-stock company in the city. The company plans to raise 1.78 billion yuan from IPO in the A-share market, mainly to invest in the project of "Guxiando Green Fiber Co., Ltd. with an annual output of 300000 tons of differential polyester industrial fiber". The project has been approved by EIA a few days ago.

The environmental protection inspection report on the listing of the company published by Zhejiang Provincial Environmental Protection Department shows that although the company has not had major environmental pollution accidents in the past three years, there are obvious deficiencies in pollution prevention and control, and many indicators in the reporting period do not comply with relevant regulations. In 2011, the company's wastewater volume exceeded the allowable discharge amount, because the pollutant discharge amount in this year was converted into the annual discharge amount based on the discharge amount in the first half of the year, which is generally the peak production season. In addition, SO2 emissions exceeded the emission permit during the whole inspection period. Some indicators of the company fail to meet the above requirements and are now being improved. ——Wen Guoqi, Manager of Zhejiang Guxiandao New Materials Co., Ltd

The decline of 2003 annual report data does not meet the review standards of the CSRC

Suzhou Longjie Special Fiber Co., Ltd. has suffered serious losses and is difficult to continue its business due to the sharp changes in the market environment and the outdated management concept. With the care and support of Zhangjiagang Municipal Party Committee and Municipal Government, the enterprise later established Suzhou Longjie Special Fiber Co., Ltd. through thorough restructuring. The company plans to make an initial public offering of shares a few days ago, and has accepted the guidance of Guosen Securities Co., Ltd., and has handled the guidance filing registration with the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission. In addition, the company's cleaner production audit has reached the acceptance conditions. At present, the prospect of listing is not optimistic.

The main reason for the withdrawal of IPO is that the CSRC has strengthened its financial review of listed companies. Many enterprises with defects in the original IPO prospectus application draft and declining performance in 2012 had no choice but to withdraw. The enterprise has not yet been listed, which should be because there are still some problems, especially because the economic situation last year was not good, and the 2012 financial report data of the enterprise was not very good, so it failed to meet the relevant requirements for listing. ——Yang Jianming, Manager of Suzhou Longjie Special Fiber Co., Ltd

04 Reduce PPS raised investment capacity for incomplete business system

Jiangsu Xinzhong Environmental Protection Co., Ltd. applied for A-share listing at the end of 2010, but was finally rejected. At present, the company's listing environmental protection verification has entered the publicity period.

The company's business system is incomplete and there are major defects in its independence, which is the main reason for being rejected for the first time. The actual controller of the company also controls Xinsheng Company whose main business is PPS resin. According to the company's existing capacity of PPS fiber products and the new capacity of fund-raising projects, the demand for PPS resin meets or exceeds the capacity of Xinsheng PPS resin. However, Xinsheng Company has not been included in the listing subject, which is inconsistent with the provisions of Articles 14 and 19 of the Administrative Measures for Initial Public Offering and Listing. Today's inspection publicity does not intend to reveal the company's current fund-raising projects, which are respectively "150 sets (sets) of XLDM bag type dust removal equipment per year" and "1000 tons of polyphenylene sulfide (PPS) fiber per year". The company's reduction of PPS fiber's raising and investment capacity this time can be said to be a lesson learned from the last defeat, so as to successfully land in the capital market. ——Chen Song, General Manager of Jiangsu Xinzhong Environmental Protection Co., Ltd

05 The application for stock issuance can be submitted after the coaching period ends

Hongxiang New Materials Co., Ltd. chose to go public at this time. First, it is time for the company to go public at this stage of development; Second, although the current environment of the whole textile industry is not very good, it has little impact on enterprises; Third, the company has been supported by the municipal government. Dezhou County Finance Office has selected 50 high-quality enterprises, established a county-level listed backup enterprise resource pool, implemented dynamic management, helped listed enterprises to solve the formalities of industry and commerce, land, environmental protection and other issues, actively coordinated and helped enterprises solve the difficulties in the process of restructuring, and introduced private funds and other issues. The company completed the guidance filing in Shandong Securities Regulatory Bureau on December 15, 2012, which marks that the listing of Hongxiang Chemical Fiber has made significant progress. The company has recently completed the share reform, entered the stage of listing guidance, and renamed Shandong Hongxiang Chemical Fiber Group Co., Ltd. as "Hongxiang New Materials Co., Ltd.".