At the opening of trading on March 7, Meibang Apparel, which had broken out of the eight-day market before, opened higher and moved higher. Less than 15 minutes after the opening, it hit the daily limit again, at 3.75 yuan/share.
Starting from March 25, 2021, Meibang Apparel began to raise its daily limit, from 1.51 yuan per share before the daily limit, to the daily limit of 3.75 yuan on April 7, and has continued to close. It has reached 9 daily limits, with a cumulative increase of 135.85%, and the market value has also risen rapidly from around 3.7 billion yuan to the latest around 9.422 billion yuan.
Meibang Clothing and Metersbonwe Clothing Co., Ltd. are mainly engaged in clothing design and development, clothing, shoes, knitwear, leather products, down products, bags, and toys. , design, production and sales of jewelry, handicrafts and paper products. It is a relatively representative enterprise in the field of domestic clothing. In the recent Xinjiang cotton controversy caused by H&M, domestic brands such as “Metersbonwe” and “Li Ning” have become direct beneficiaries because of their unequivocal support for cotton produced in Xinjiang, China. Analysts believe that amid the continued hype in the market, Meibang Apparel has become the leader in the field of apparel countermeasures by taking advantage of its position.
On the afternoon of April 6, a reporter called the office of the Secretary of the Board of Directors of Meibang Apparel and asked whether the reason for the company’s recent continuous price limit is because of its support and use of Xinjiang cotton?
The Office of the Secretary of the Board of Directors of Meibang Apparel responded, “We cannot give specific reasons for the fluctuations in stock prices in the secondary market. From the perspective of the Board of Directors Office, all the disclosures we make are fair and reasonable. According to regulations. Some of our apparel products use Xinjiang cotton, but certainly not all products use Xinjiang cotton. We have also answered this question.”
Due to the excessive short-term increase in stock prices , the company has disclosed many changes in announcements, and regulatory attention has come immediately.
On April 2, the Shenzhen Stock Exchange issued a letter of concern to Meibang Apparel, requiring the company to verify and explain a number of matters, including whether there have been major changes in the company’s fundamentals and recent stock price increases. Whether the maximum is consistent with the company’s fundamentals and fully prompts the relevant risks.
At the same time, the Shenzhen Stock Exchange also disclosed regulatory developments on April 2 that showed that from March 29 to April 2, a total of 38 cases of abnormal securities transactions were Self-regulatory measures have been adopted for this behavior, involving abnormal trading situations such as intraday pump-and-dump, false declarations, etc. We will continue to focus on monitoring “Shunkong Development”, “Meibang Apparel” and “Northern International” that have experienced abnormal increases for many consecutive days, and take timely supervision measure.
On the evening of April 6, Meibang Apparel responded to a letter of concern from the Shenzhen Stock Exchange stating that after verification, the company did not have any major matters that should be disclosed or undisclosed, and no recent public media reports on the company were found. Undisclosed material information that has a greater impact on stock trading prices.
It is worth noting that in the announcement of Meibang Apparel’s reply to the Shenzhen Stock Exchange’s letter of concern, Meibang Apparel stated that after self-inspection, the company’s production and operation conditions are normal, both internally and externally. There have been no major changes in fundamentals such as the business environment and business model. The company expects to suffer losses in 2020. The company’s stock price has increased significantly recently, which has deviated from the company’s fundamentals to a certain extent.
In the 2020 performance forecast, Meibang Apparel said that the company actively responded to the impact of the new crown epidemic on the apparel industry and changes in the market environment, and increased Efforts will be made to promote brand upgrade and digital transformation. Sales revenue in the fourth quarter is expected to increase compared with the third quarter, and profitability will improve quarter by quarter.
For this reason, Meibang Apparel relies on selling equity to improve its performance. On March 10, 2021, the company announced that it would sell 100% of its equity in Shanghai Model Public Industrial Co., Ltd. to Shanghai Bacchus Employment Company for a planned sale amount of 448 million. After the transaction is successful, it will bring income to the company of approximately 250 million yuan. As of March 24, the company has received approximately 400 million in payment from Bacchus Wine Industry. The sale of this part of assets should be able to effectively improve the financial data of Meibang Apparel in the first quarter.
Despite this, the 2020 performance forecast released by Meibang Apparel in October last year showed that the company’s loss in 2020 is expected to be: -820 million yuan to -580 million yuan. In 2019, Meibang Apparel’s net profit loss attributable to shareholders was -82.6 billion yuan. Since the audited net profit of Meibang Apparel in the last two fiscal years may continue to be negative, it may trigger the conditions for the exchange to issue a delisting risk warning for the company’s stock trading. As a result, the company’s stock may encounter *ST after the disclosure of the annual report. deal with.
In addition, Meibang Apparel announced on March 1 that the company and its subsidiaries have reported possible reductions at the end of 2020. For assets with signs of value, including inventory, accounts receivable, other receivables, non-current assets due within one year, long-term receivables, investment real estate, etc., conduct a comprehensive inventory and asset impairment test.Afterwards, it is planned to make provision for impairment of various assets in 2020 of RMB 366 million.
This means that the company’s net profit will be reduced by 366 million. In 2019, the company also reduced its accrued assets by 465 million. In other words, Meibang Apparel has made provision for asset impairment for two consecutive years, with the amount of asset impairment provision reaching 830 million yuan. </p
