Wan Dai clothing (hereinafter referred to as "10000 generation shares") is hitting IPO. The fund raised by the company is mainly used for the production base construction, R & D Exhibition Center construction projects, information upgrading and reconstruction projects and supplementary working capital of the Gulf Industrial Area, with a total investment of 366 million yuan. At the same time, the main competitors of Wan Dai stock have been listed, including 02232.HK, 01982.HK and 002091.SZ.
It is noteworthy that, as ZARA, GiorgioArmani and other famous clothing brand processing plants, the largest five customers in the past three years accounted for no less than 60% of the sales revenue, and 2016 to 2018, the company's bad debt preparation was 13 million 889 thousand and 400 yuan, 12 million 813 thousand and 500 yuan, 15 million 312 thousand and 900 yuan, most of these bad debts came from the company's former five major customers.
In June 28, 2019, Wan Dai shares submitted a prospectus to the China Securities Regulatory Commission, and plans to issue 23 million 627 thousand and 500 shares to the public, accounting for 25% of the total share capital issued. The funds raised are mainly used for the construction of three projects, namely, production base construction, R & D Exhibition Center construction project, information upgrading and reconstruction project, and supplementary working capital.
The investment amount of the above four items is 214 million yuan, 72 million 933 thousand and 800 yuan, 23 million 619 thousand and 200 yuan and 55 million 591 thousand and 600 yuan respectively, and the total investment amount is 366 million yuan.
The prospectus shows that the record number of the construction project of the production base of the Bay industrial area is the approval of the General Reform Commission  No. 17, and the reply / record information of the project EIA is the universal environmental assessment word  0031. The project aims to build a garment processing and production base of 2 million garment products per year, with a total construction cost of 102 million yuan. The construction area of the production area is 41 thousand and 400 m, the finished product and raw material storage room is 17 thousand and 300 m, and the comprehensive office building is 6000m.
The site of the project is located in the Nanshan Street Bay community of the city area. As of the date of signing the prospectus, the issuer has signed the contract for the assignment of the right to the use of state-owned construction land with the land and Resources Bureau of the land and Resources Bureau and the Land Bureau of the Bureau of land and resources of the Municipal Bureau of land and resources, and agreed to transfer the right to use the state-owned construction land at 64 thousand and 700 m to Wan Dai. The construction period of the project is 24 months.
At present, the "investment one line" only found the record information of the two projects of R & D Exhibition Center construction project, information upgrading and reconstruction project in the official website of the Environmental Protection Bureau.
The official website of the Municipal Environmental Protection Bureau shows that the record number of the WAN Dai garment research and development exhibition center construction project and the 10000 generation clothing and information upgrading project is 201921020200000049 and 201921020200000048 respectively. The two projects are located in the pikuiyuan square, 33 Kong Pu Road,
Chart source: the official website of the Environmental Protection Bureau of Wuhan City, the record of Wan Dai stock.
The record information of R & D center construction project, information upgrading and reconstruction project is consistent with the content disclosed in the prospectus, and the related property is still under construction.
Chart source: the official website of the Environmental Protection Bureau, the record information of R & D Exhibition Center construction project.
Source of the map: the official website of the Environmental Protection Bureau of the Municipal Environmental Protection Bureau
In view of the related issues such as the construction of the production base in the Bay industrial area, the investment line has sent a research letter to Wan Dai stock. The other side replied, "our company attaches great importance to information disclosure, and strictly implements the obligation of information disclosure in accordance with the company law, the Securities Law and the relevant provisions of the China Securities Regulatory Commission.
It is worth noting that the prospectus shows that in July 2016, the wholly owned subsidiary of Wan Dai stock, the Wan Wan Dai La Dadu washing Garment Co., Ltd. (hereinafter referred to as "La Dadu clothing") did not construct the construction license without permission. The comprehensive administration of law enforcement of the Urban Management Bureau of the Jin Jin Pu New District issued a decision on the execution of Dajin city.  No. 2616006 "administrative penalty decision", ordered 15 days to complete the formalities, and the construction contract price was 1.1% fine 209 thousand yuan.
On the other hand, in October 24, 2016, the law enforcement officers of the Environmental Protection Bureau of the new Jin Jin Pu new area found that in the process of law enforcement inspection, they found that the new dyeing workshop and the two 6 ton coal-fired steam boilers were not approved without authorization, and the water pollution control facilities had been put into production without acceptance. Therefore, the Environmental Protection Bureau of the Jin Pu New District issued the administrative punishment decision of the Environmental Protection Bureau of the Jin Pu new district in December 27, 2016 (the grand gold ring punishments  No. 33), which ordered the lawsuits to stop illegal activities, correct the time limit, and impose a fine of 174 thousand yuan.
In July 20, 2016, the WAN Dai stock itself was fined 2000 yuan by the customs and customs because of the "Declaration of declaration manual for declaration of export customs documents in November 6, 2015". In November 13, 2018, the company was fined 5000 yuan by the customs and administrative department for "failing to apply the price of G1 and G2".
Wan Dai stock has been engaged in garment processing and sales since its establishment for 13 years. Its main customers include Indo Textile Group (ZARA parent company), GiorgioArmani group, fashion fashion (Jack&Jones, Only, VeroModa), Benetton group (UnitedColorsofBenetton) and so on.
Wan Dai shares first entered into cooperation with Indo textile group. In 2005, ZARA, Bershka and Pull&Bear of Indo Textile Group became the company's customers. In 2012, MassimoDutti also became the company's customers. In 2014, the GiorgioArmani of the group company was cooperating with the company. In 2017, LevisStrauss joined the company. In 2018, Ralph's PoloRalphLauren cooperated with the company.
Indo Textile Group and group are from Spain and Spain respectively, so the European region has become the main export place of the company's products. In the past 2016-2018 years, the sales revenue of European generation products in Wan Dai shares was 807 million yuan, 919 million yuan and 926 million yuan respectively, accounting for 78.26%, 77.18% and 74.84% respectively.
It is worth noting that the dependence of Wan Dai stock on large customers is large. In the 2016-2018 year, the sales revenue of the top five customers accounted for 70.12%, 65.35% and 66.78% respectively.
In 2018, the top five customers of the company were Indo Textile Group, silk fashion, Benetton group, group group, and Si Jie Global Holdings. The total sales amount was 826 million yuan, accounting for 66.78% of the revenue. The top five customers in 2017 were Indo Textile Group, fashion fashion, group, Benetton group and 002269.SZ. The total sales amount amounted to 778 million yuan, accounting for 65.35%. Before 2016, the five main customers were Indo Textile Group, fashion fashion, group, Benetton group, COFRAHoldingAG, and the total sales amount amounted to 723 million yuan, accounting for 70.12%.
As of December 31, 2018, according to the end balance of accounts receivable collected by arrears, the top five customers were BENETTON ASIA PACIFIC LTD., Mei Bang dress, G.A. OPERATION SPA, ITX TRADING S.A., and ATEX Asia Pacific Business Management Co., Ltd. the balance was 39 million 712 thousand and 100 yuan, 31 million 738 thousand and 200 yuan, 21 million 843 thousand and 500 yuan, 17 million 260 thousand and 500 yuan and 15 million 459 thousand and 100 yuan respectively, totaling about 126 million yuan, accounting for 48.92% of the accounts receivable balance. These brands are operated by Benetton group, Mei Bang dress, group and India Textile Group.
In 2017, the balance of the accounts receivable balance of the first five customers totaled 126 million yuan, accounting for 49.27% of the accounts receivable balance. In 2016, the balance of accounts receivable remaining at the end of five accounts for a total of 169 million yuan, accounting for 63.24% of the accounts receivable balance.
In addition, in the past 2016-2018 years, the bad debt preparation of 10000 generation shares was 13 million 889 thousand and 400 yuan, 12 million 813 thousand and 500 yuan and 15 million 312 thousand and 900 yuan respectively, showing an upward trend of volatility.
In the past 2016-2018 years, the company's revenues were 1 billion 38 million yuan, 1 billion 197 million yuan and 1 billion 241 million yuan respectively, with net profit of 60 million 349 thousand and 200 yuan, 24 million 114 thousand and 300 yuan and 62 million 863 thousand and 900 yuan respectively.
The export tax refund policy of 10000 generation shares will enjoy the export tax rebate policy of value added tax. In 2016-2018 years, the amount of export tax refund received by the company is 91 million 592 thousand and 300 yuan, 111 million yuan and 111 million yuan respectively. If the tax rebate amount is excluded from the net profit of the year, the company's losses will be 31 million 243 thousand and 100 yuan, 87 million 375 thousand and 200 yuan and 48 million 138 thousand and 600 yuan respectively, with a total loss of 167 million yuan.
Source: Investor writer: Wang Xia di