Will Busen Continue To Return To Its Main Business?

Under the constant attention of the Shenzhen Stock Exchange and Zhejiang securities regulatory bureau, the Zhejiang Busen apparel Limited by Share Ltd, which has just announced its focus, is due to Mengyin's high level shock. A few days ago, Busen responded to the inquiry letter of the Shenzhen Stock Exchange and the Zhejiang securities regulatory bureau. The chairman and the actual controller Zhao Chunxia had left the country without a return schedule. Chen Jianfei, the former general manager, was dismissed.

In 2019, Busen, which had been engaged in clothing products such as men's shirts, Western-style clothes and trousers, began to focus on the clothing business. At the same time, Busen's business license has also changed, increasing the content of work clothes manufacturing. However, it is not easy to return to the main business. The industry believes that frequent changes in actual controllers and personnel changes in key positions are harmful to the company. Such changes will have a significant negative impact on the company's business stability and are not conducive to the implementation and implementation of the company's established strategy. In recent years, the operation of Busen shares has gone from bad to worse. The result of this high-level concussion is that the road to return to the main business has become more difficult.

Focus on main business

Recently, Busen shares announced that it intends to buy a 100% stake in Busen invested by Busen group at 96 million yuan. Busen shares said in a notice that the acquisition of Busen's investment is to acquire the land and factory buildings it owns, and further develop the company's clothing industry. In June 2019, Busen shares change company's business license, in the scope of operation, added anti static clothing, flame retardant clothing and other work clothes manufacturing content.

In view of the increase in business scope, Beijing Commercial Daily reporter interviewed Busen shares by e-mail. As of press release, no reply has been received.

In fact, since 2018, Busen shares have paved the way for returning to the main garment industry. In April 2018, Busen shares put forward in the annual report that it will take men's clothing business as the starting point, fashion dress as the core, vigorously layout the fashion industry, and integrate the development of new retail business. In July 2018, a wholly owned subsidiary of Busen shares saw that supply chain management (Zhuji) Limited and Guangzhou Tianma dress city signed a ten year contract to expand channels to open up the supply chain and enhance the capacity of garment business development.

Meanwhile, according to the 2018 annual report, Busen shares plans to continue to strengthen the resources and competitive advantages of the company in men's clothing business, accelerate the reform and innovation of garment sales channels, open up sales links under the online and offline sales lines, and vigorously develop new retail businesses.

Frequent high-level changes

Although there is a desire to return to the main garment industry, the frequent changes of top executives still make Busen shares powerless. In 2018, 8 directors and senior executives of Busen stock left, including key positions such as deputy secretary general and deputy general Lu Lijuan, financial director yuan Jianjun and deputy general manager Hu Qiang.

In June 13th, Busen shares announced that the board decided to remove Mr. Chen Jianfei's general manager's duties for consideration of the company's business. Subsequently, Chen Jianfei said in the notice reply that he did not voluntarily resign from the board of directors. The resignation of the resignation of the general manager is inconsistent with the facts.

In addition to frequent high-level changes, Busen shares have repeatedly staged control disputes. Since 2015, Busen's actual controllers have changed 3 times in four years.

According to public information, in 2011, when Busen shares landed at Shenzhen Stock Exchange, the company started to hold 59.55% of the company's original shares. Since 2014, it has reduced its holdings to 2.82% at the end of the first quarter of 2019.

In December 2018, the company held 22 million 400 thousand shares of Busen stock and was auctioned by law. The buyer, Beijing Dongheng Heng, was the largest shareholder in the company with a 16% stake. The industry believes that the auction will again bring real control changes, but Busen shares said that the actual controller at this stage is still Zhao Chunxia, will not change for the time being.

The future is complicated.

The frequent changes of the real controllers have led to frequent changes in the development strategy of Busen shares, and the strategy of returning to the main industry has also become hesitant. In 2016, Xu Maodong, a former real controller, promoted the spanformation of the company to the financial service platform. In 2018, the current real controller, Zhao Chun Xia, put forward the development model of "entity industry + new finance".

Song Qinghui, a famous economist, believes that frequent changes in actual controllers are harmful to the company. Such changes will have a significant negative impact on the company's business stability and are not conducive to the implementation and implementation of the company's established strategy.

Facts have proved that this is precisely the instability of the main industry, resulting in a sharp decline in the performance of Busen shares. According to the annual report, Busen shares made 369 million yuan in 2016, 6 million 599 thousand yuan in net profit to women, 2017 yuan in operating income and 343 million yuan in net profit, 338 million yuan in net profit loss to the parent company, 319 million yuan in 2018, and 193 million yuan in net profit attributable to shareholders of listed companies, down 6.99% and 470.36% respectively.

In this regard, Cheng Weixiong, general manager of textile and clothing management experts and Shanghai Liang Qi Brand Management Co., Ltd. believes that Busen shares are not understood by the fashion industry's acquisition of foreign capital, and can only continue to operate in the original clothing industry. Busen's return to the old bank is a familiar road, but it is difficult to determine whether the garment industry is getting warmer. The development of Busen's return to its main business is not clear. Author: Lan Zhaohui Li Meng