Roley Home Textiles Xue Weicheng: Bedroom Products Make Billions Of Fortune

The textile industry can be divided into three categories: household textiles, industrial textiles and clothing.

According to the statistics of China Textile Industry Association, in the western developed countries, the consumption share of the three types of textiles is evenly divided, accounting for 1/3 of the total, while in China, the share of home textile products accounts for only 10%, and the market potential is very promising.

From the perspective of industry profits, the average profit of the textile industry is 3%, while the average profit of home textile products is 30%, far higher than the average profit of the industry.

As a leading enterprise in the domestic bedding industry, Roley home textiles has been focusing on the research, production and sales of home textiles based on bedding since its establishment in 1992.

In the increasingly fierce competition in the home textile industry, Luo Lai home textile has emerged as the only home textile company that has been approved by the market. The first share of the A share market is the home textile industry, making it a shining star in the home textile industry.

The Luo family textile listed company plans to issue 35 million 100 thousand shares to raise 522 million 970 thousand yuan, which is mainly used for the expansion of production base, the optimization of marketing network and the investment in design and research. This will be more advantageous to the future development of the home textile industry, and will be more conducive to the position of Gong Gu in the industry.

　　优势背后的不足

According to the prospectus issued by Luo Lai home textile, the important financial indicators of the company in recent years are ahead of the same industry and have obvious competitive advantages.

But, as the saying goes, "gold is not perfect, and no one is perfect, so is it for the company."

Behind the company's beautiful financial indicators, we will also find some deficiencies in the US and China:

First of all, a share pfer at the end of 2006 has always been questioned by the outside world.

At that time, Gu Qingsheng, a shareholder of the company, pferred 38.53% of his stake at a low price of 5 million yuan, but according to the net asset value at that time, the equity value of the company was 47 million 850 thousand yuan.

The paction price is far below the fair value, causing the outside world to speculate.

The prospectus explains that Gu Qingsheng has never participated in Roley's household management since he invested in the establishment of Roley home (Roley's predecessor) in May 2002.

This explanation is obviously not convincing, because according to relevant laws, investors do not necessarily have to participate in the management of the company. In the distribution of business results, we should adhere to the principle of "sharing the same rights and shares" and have nothing to do with whether or not to participate in business management.

Therefore, the catch can not be imagined.

In view of the ownership structure of the two companies, Nantong public Cci Capital Ltd and Wei Jia International Company Limited, we found that the two companies are actually holding the same person and are also the actual controlling shareholder of Xue Weicheng.

According to the analysis of relevant persons, this may be a cover between two investors for tax avoidance.

Because according to the tax law, the share pfer agreement is a property pfer book. The two parties should pay the stamp duty at 5/10000 of the agreement price, and for the pfer owner Gu Qing Sheng, the personal income tax should be paid for the pfer of the proceeds from the pfer of shares.

In view of this, both parties are still very likely to lower the price of the agreement in order to achieve the purpose of common tax avoidance.

　　2006年末罗莱家纺股权转让图

Secondly, the phenomenon of related party pactions is common.

There are related pactions in many links such as raw material procurement, product packaging, sales, housing leasing and so on, which is closely related to the background of the company's family business.

Although the company announced that the price of related party pactions is fair, the existence of related pactions has indeed promoted the company's net profit to a certain extent, but it is an indisputable fact.

For example, in November 2006, when the company acquired the sales company wholly-owned, it sold the company in connection with Luo Lai holdings. The company's net profit increased by 940 thousand yuan in 2005 and increased by 59 thousand yuan in 2006.

In the financial statements, the amount of other receivables and other payables is relatively large, but the company has not given more detailed reports and reasonable explanations, so that the suspicion of related pactions is not dispersed.

Thirdly, the change of the preferential tax rate enjoyed by the company has a greater impact on the net profit of the company. In other words, if the company does not enjoy the preferential policy of national income tax, the net profit of the company will be smaller than the current value.

Because the company is a production oriented foreign investment enterprise in the national economic and Technological Development Zone, enjoying the preferential tax policies of the state, it has been exempted from enterprise income tax in 2002-2003. In 2007, the enterprise income tax was levied half by 2004-2006, and the income tax rate of 7.5% was implemented. In 2008, the tax rate was 15%, and the 18% income tax rate was implemented in 2008. The company's income tax rate increased year by year.

How much is the impact of income tax changes on net profit?

We can get an intuitive understanding from the specific value. According to the calculation, if the company does not enjoy the preferential tax policy of income tax, the net profit of the company will decrease by 5 million 130 thousand yuan in 1-6 months in 2008, the net profit in the 2007 year will be reduced by 23 million 80 thousand yuan, the net profit in the 2006 year will be reduced by 1529 yuan, and the net profit in the 2005 year will be reduced by 9 million 840 thousand yuan.

In other words, the contribution rate of tax incentives to corporate net profit is 10% in 2008, 2007 in 1-6, 31% in 2006 and 35% in 2005.

It can be seen that the impact of tax incentives on net profit is great. From the trend, with the gradual reduction of the tax preference policy, the degree of influence on net profit is decreasing correspondingly. Therefore, when the corporate income tax rate increased to 20% in 2009, the contribution of tax preference to net profit will also be further reduced.

　　群雄割据，谁将成为未来的霸主

Because of low entry threshold and huge profits, the home textile industry has attracted many enterprises and even foreign brands to enter, and the competition in the industry has become more and more intense.

Low end home textile products market has been plunged into vicious competition in price war, and profit space has shrunk sharply.

The future of home textile industry lies in the production of high value-added products.

In the field of medium and high grade home textiles, the main competitors of Luo Lai home textile are Hunan Meng Jie home textile Limited by Share Ltd and Shenzhen fuanna home furnishings Co., Ltd., and the development mode of the two companies is very similar to that of Luo Lai.

The three companies occupy mountains and dominate each other, and actively expand their territory to the periphery. In such a fierce competition, they will not be forced to retreat and do not enhance their strength. They will be swallowed up by others. Therefore, the competition among companies in brand, channel and marketing mode will become more intense in the future.

Behind these competitions, what is really needed is strong financial strength as a strong backing, which is the fundamental purpose of every company actively seeking to go public.

It can be said that in the current competition, whoever wins capital gains the initiative of competition. Just like in war, whoever possesses more ammunition will have a greater probability of defeating the other party.

In the preparation stage of the war, we seem to have smelled the smell of smoke in the air, and Roley's home textiles finally declared victory at this stage.

The battle between home textile enterprises is going to happen, and who will gallop the battlefield and conquer the city and become the overlord of the home textile industry in the future? We will wait and see.