Textile And Chemical Fiber Enterprises Should Be The Selling Point And Cost Before Going Public.

As an important part of China's gross national product

The main advantage of listing is to raise enterprises' development and expand the funds needed.

By raising funds on the stock market, enterprises do not have to bear the pressure of repayment, and the right to determine dividend allotment is also in the hands of the enterprises themselves.

But at the same time, enterprises also shoulder certain responsibilities. For example, management should gradually establish a responsible attitude towards small shareholders, improve the pparency of their own management and operation, and establish a good public image of enterprises.

In essence, listing is actually the sale of shares of a company by selling its own business to the public.

Therefore, the listed companies need to evaluate themselves and make clear the selling points of enterprises, such as business prospects, industry status, market share and profitability quality.

Under normal circumstances, the listed clothing enterprises need to have certain competitive advantages to attract investors' attention, including their advantages in the market position, marketing network, promotion channels, product design, development and production capabilities.

For example, when a clothing enterprise is listed, the selling point is that it ranks first in a certain market range; the sales volume of a garment enterprise has reached a certain proportion in the past three years; the number of sales outlets of a garment enterprise has reached a certain scale; the management layer of a garment enterprise has more than a certain number of industry experience and so on.

In addition, enterprises need to consider the location, timing and cost of listing, including time cost.

Before 2007, the location of Chinese garment enterprises was mainly in the A shares in the mainland.

Since 2007, the number of A shares listed on the mainland and Hongkong's main board has been relatively close.

At present, Chinese clothing enterprises usually choose mainland A shares or Hongkong main board as the market place.

For the choice of listing place, the main factors for enterprises to consider are the issue price earnings ratio, the time required for listing approval, and the regulatory environment.

Among them, the issue price earnings ratio is the issue price per share divided by the earnings per share, so the higher the issue price earnings ratio, the more funds can be raised.

Mainland China's A shares are generally higher than Hongkong's main board in terms of price earnings ratio.

However, the time required for listing and approving A shares in the mainland is longer than that of Hongkong's main board, and the regulatory environment is also stricter than Hongkong's.

Therefore, the choice of listing sites needs to balance many factors and consider the timing of the listing.

The timing of listing depends mainly on the change of macroeconomic cycle and the change of government policy cycle. Besides, it also needs to consider the preparatory situation and capital demand of the enterprise itself.

Because the industry has not listed the clothing industry as a listed industry, and the time of examination and approval is uncertain, it is difficult for enterprises to control the timing of listing. Therefore, more and more Chinese clothing enterprises have chosen Hongkong as the venue for listing.

The listing of enterprises generally takes a year or even a few years, and its success is limited by many external factors.

At the same time, the internal problems of enterprises will also affect their listing.

According to past experience, the common internal problems of Chinese clothing enterprises in the listing process include: reorganization of legal framework, independent operation principle, business divestiture, related party pactions, competition in the same industry, tax problems, accounting problems and corporate governance.

These internal problems can be categorized as legal and financial problems in general.

In the near future, many listed companies have introduced relevant legal teams and financial teams in advance to sort out and standardize enterprises in law and finance, so as to ensure that enterprises will not obstruct the process of listing because of their own reasons when the best time to market is coming.