The Clothing Industry Is Becoming More And More Difficult.

At the end of December 2015, Busen announced a suspension of its major asset restructuring and plans to acquire 100% stake in Mdt InfoTech Ltd, Beijing.

After more than 7 months' suspension, the company terminated the process on the grounds of great changes in the domestic securities market environment and policies.

As a company specializing in garment production only,

The popularity of this brand does not seem to have been improved by focusing on it. In fact, the company's performance in recent years has proved this.

And surprisingly, in the seemingly double negative situation, the company's share price has recently hit a new high. What's the matter? Originally, Xu Maodong, the head of the Xinghe Internet company as a venture capital investor, took over the shell resources.

It is easy to see that the performance of the company has not shown any bright prospects in recent years, and its performance in recent 3 years is even bleak.

Compared with the overall performance of the garment industry, it is found that, although the company's gross profit is about 36.2% higher than the industry average, the net interest rate and net asset yield are -15.22% and -4.55%, which are nearly 25.1% and 14.6% lower than the industry average.

According to the 2016 China Daily report, the company's current revenue was 152 million yuan, down 15.3% from the same period last year, and net profit was 23 million 80 thousand yuan, which was expanded again compared with 5 million 797 thousand yuan in the same period last year.

Compared with other garment enterprises, it is easy to find that the company is undoubtedly competitive and its future performance is not optimistic.

As a former controlling shareholder, Busen group has long been worried about the growing severity of the future. If the performance continues to slump, the loss of share value will shrink and even face the dilemma of delisting.

Selling clothes to earn money is becoming more and more difficult. Selling the shell and making money is a hammer business, but it is easy and pleasant.

High cash in hand, thirty-six plan to take the lead!

In August 2014, Busen shares carried out its first major asset reorganization, which led to the pformation and sale of agricultural products through Hong Wah's agricultural backdoor listing. However, it eventually led to a restructuring abortion due to shareholder differences.

After the failure, Busen group decided to pfer 29.86% of its shares to Shanghai Rui Wei asset management partnership.

In May 6, 2015, Rui's assets succeeded in replacing Busen group as a controlling shareholder. At the same time, it immediately carried out two mergers and acquisitions for Hong Wah agriculture. However, it was once again aborted on suspicion of false information.

Up to now, although the failure of the three successive restructuring has led to a drop in share prices in the short term, the real reason for its record highs is that in August 18th this year, Xu Maodong adopted the 95.02% stake of the two companies in Lhasa Xingxing and Xinghe win the controlling shareholder of the two companies, thus indirectly pforming the actual controller of Busen shares.

The cost of Xu Maodong's actual controller is only 30 million yuan.

The way is through

Managing partner's status and obtaining a small amount of shares, but having the control rights of private equity funds.

The rest of the money comes mainly from private equity funds of general partners.

Why is it only a replacement of the actual controller? The reaction of the stock price is so fierce. In fact, when the Busen group pfers control right, it indicates that the pformation of the company is only a matter of time. What the specific pformation is done is determined by the new controlling shareholder. Nowadays, the target which is favored by the market is undoubtedly related to the Internet, which is exactly the industry Xu Maodong is good at.

As a senior private equity investor, Xu Maodong can take money from investors to earn money.

As a management partner, on the one hand, he can buy the shell with the money of the general partner. On the other hand, he can put the venture capital project cast by the general partner's money into the listed company that bought the shell.

Xu Maodong has been focusing on Internet entrepreneurship for nearly 20 years, and has long been committed to combining the Internet with traditional industries.

Before creating a high-quality Internet service platform for startups, Xinghe has set up different types of companies, including traditional industries, technology and the Internet.

It is worth affirming that rich entrepreneurial experience has made it possess a very keen sense of business and sense of smell, which can be seen from Xinghe interconnection.

Since the establishment of the platform in 09, up to now, nearly more than 100 start-ups have been successfully established, and there are many outstanding success stories, such as WOWO Limited (NASDAQ JMU) which has been listed in the US, and Egg Lars, a hand travel company bought by the Dragon management industry (sz.002619).

Not only that, these Internet Co cover a wide range, including O2O and electricity providers, artificial intelligence, intelligent devices, cloud computing big data, enterprise services, digital entertainment, music, media and social networking, Internet (health, finance, catering, clothing, tourism, education, agriculture, real estate, automotive) and so on, totaling 16 Internet segments.

In this regard, before the formal entry of Busen shares into the actual controller, Xu Maodong, who holds such a large and highly divided Internet assets in the field, has already fully prepared for the future pformation of the company, and may have made a careful layout for the development route.