Textile and garment enterprises of two transition road:

First, through the implementation of major asset restructuring or backdoor listing, complete transformation to achieve the main industry changes, such as China Resources Jinhua, new Yang Feng, Busen shares, Huafang textile and textile companies such as Southern Fujian

Second, through cross-border acquisition of assets, realized main business to keep pace with the new business, seeking a "multi-legged walking," such as one hundred round pants industry, the public and shares, Jiangsu Sunshine other companies

In recent years experienced weaker exports, under pressure from rising labor costs, the profit decline in the apparel industry is increasingly grim, textile and apparel directly trigger a wave of mergers and acquisitions of listed companies set off a wave of restructuring.

In recent months, especially since the relevant company's merger integration moves frequently, and share price performance is unusually hot. Such has been the resumption of Lukang technology, Caesar shares, one hundred round pants industry, Busen shares and Thailand and Asia shares. Up to now, the company has still suspended for Saturday Lancy shares and Jialin Jie.

Main business was bad pressure

From the end of 2011, the domestic textile and apparel industry boom began to decline. On the one hand, raw materials, labor costs and rising rents shop, on the other hand, the rapid development of electricity providers have a great impact on offline sales, the overall industry downturn.

Throughout the textile and clothing companies semi-annual report released in 2014, nearly nine-tenths of the company to achieve profitability. Although the textile and clothing companies generally profitable, but the situation remains the company's performance fell significantly. Data show that in the second quarter of this year, industry-wide revenues of listed companies fell 1.61 percent, respectively, 4.30%; net profit fell 0.62% and 2.37%.

To one hundred round pants industry as an example, in 2013 net profit fell 39.86 percent in the first half 2014 net profit fell 44.81%; Busen shares in the first half net loss of 33.2898 million yuan, down 394.18 percent. Based on performance decline, its share price has seen a dramatic dive.

Golden State Securities industry researcher said the second half of textile and garment industry will continue hovering at the bottom, corporate financial indicators continued to deteriorate, also confirms yet reached the bottom of the industry.

Transformation to find a way

In this grim situation, the textile and garment enterprises have to find a way out, big business vertical and horizontal expansion territory, small businesses are simply restructuring and asset injection, the main exit of textile industry. This year, basically out of the listed company's main business includes textiles China Resources Jinhua, new Yang Feng, Busen shares, Huafang Textile and Southern Fujian spinning.

The evening of August 21, suspended for nearly four months Busen shares lifted the veil of its major asset restructuring. Program includes major assets, asset sale, issue shares to buy assets and issue shares to raise matching funds. Upon completion of the reorganization, the shares Busen garment enterprises will be transformed into a high-end eco-agricultural enterprises, the main business to achieve complete transformation.

Again Huafang textile company Sept. 10 announcement, the Commission has approved the company's major asset restructuring plan. According to previously announced plans to Huafang Textile owns all assets and liabilities as part of the 100% equity equivalence set out the assets and Kerry Group and other 96 counterparties Jiahua owned energy replacement, replacement of these assets by the company to the difference counterparty by price 5.32 yuan / share issue 932 million shares to pay.

Insiders said that similar kind of completely out of the main textile industry through the backdoor, etc., is indeed some poor performance, operational difficulties of the enterprise can be considered a way out. Currently, the textile industry, the upstream chemical fiber enterprises are also some companies have such consideration.

Seek diversified development

At the same time, some companies keep the original in case the main industry, seeking through "cross-border" mergers and acquisitions to achieve higher valuations and earnings growth.

From the announcement of the Case has been, since 2012 to enter the field of new energy and new materials, the public and the shares all the way overweight layout related industries. June this year, the company released set by plan, proposed issuance of not more than 250 million shares, raising not more than 1.5 billion yuan, used to supplement working capital, accelerated layout lithium battery industry, textile printing and dyeing industry by promoting the transition to the lithium industry and has initial construction of lithium ore, lithium, lithium series material relatively complete industrial chain.

Hundred round pants industry is the price of 1.032 billion yuan of the proposed acquisition of cross-border electricity supplier Universal Tesco, which hundred round pants industry intends to pay 972 million yuan on the price of the stock, to pay 60 million yuan in cash. Previously hundred round pants industry's main business is in the low-end retail pants. Electricity suppliers have a certain impact on their offline sales network, combined with industry competition and other factors, the company's performance declined. The acquisition of Universal Tesco, as its transformation to seek a path.

In addition to these larger acquisitions, some smaller integrated action is endless. Part of the acquisition and integration of upstream and downstream enterprises to build the industrial chain, some companies cross-border business development. As Semir clothing intended to be 100 million yuan acquisition-related equity firm, in a bid to enter the children's education market.

Subject close to the hot market

It is noteworthy, whether it is to completely change the main industry or diversification, restructuring the company's textile and garment industry are all subject belongs to the hot market, the distribution of new energy, new materials, medical, mobile games and media culture and other fields.

The most typical to hundreds of round pants industry. Hundred round pants industry intends to purchase Tesco is the subject of global cross-border electricity supplier leading B2C businesses, the number of commodities, prices, supply chain integration, cost management, and so has outstanding advantages; Meanwhile, Universal Tesco clothing and 3C products Lord, is a vertical cross-border electricity supplier companies, has accumulated over 600 million registered users. B2C market that is still in the stage of rapid growth.

Thus, in the hot market stimulation, one hundred round pants industry shares in the past two months Lianfan tripled. August 27, shares hit a new high since listing in December 2011, to close at 52.48 yuan per share, compared with the closing price on April 8 stop plate in front of 15.1 yuan per share soared 248%.

The technology is also close to the market Lukang hot cross into the film and television industry. 100% stake in the company to "equity + cash" approach to the acquisition of holdings Chenhan Hai, Wuhan Branch of the century queue, on the price of 470 million yuan. After meddle cultural television concept, Lukang technology being sought in the secondary market, after the May 22 resumption of shares hit the daily limit for two consecutive days.