"Sox King" Longsha Shares "Out Of Favor" A-Share Market: Main Control Board Game, Industry Twilight Sample?

Langsha brand, which used to be full of advertisements, has gradually faded out of the consumer's vision. Just like its listed platform ronsa shares (600137. SH), it has been abandoned by more and more A-share investors.

In the fourth quarter of 2020, the total transaction volume of Langsha shares is 645 million yuan. Excluding ST shares and new shares, the total transaction volume ranks the third from the bottom in the whole A-share market.

Other indicators also show that its liquidity in the secondary market is worrying: the average daily turnover in the fourth quarter was 7.87 million yuan, the average daily turnover was 494000 shares, and the average daily turnover rate was 0.51%.

Langsha brand can be said to be a household name, in the past television advertising, especially Longsha's silk stockings advertising. Big s, Cecilia Cheung and other stars have been spokesmen, and the red color on the package of Longsha silk stockings is deeply rooted in the hearts of the people.

In 2007, Longsha backdoor * ST long-term control landed on a shares, and its share price once soared several times, becoming a sample of backdoor wealth.

Yes, there is no lack of a new myth of wealth creation.

However, after the second half of 2020, the company's share price has been going down. Up to now, the company's share price has dropped by nearly 40% from the highest point, and the market value is only 1.246 billion yuan.

Little known is that the largest sock business of ronsa is not in the listed company system, and its main business is underwear, shorts, bra, etc.

For investors, the biggest expectation is whether the controlling shareholders will inject sock assets into listed companies.

In the decade of Langsha's continuous downturn, this obsession may be the main driving force to support its share price. However, in the overall downturn of the clothing industry, ronsa socks industry has fallen into the "pyramid selling storm", the above expectation seems no longer worthy of praise.

Langsha's falling out of favor

"Langsha has invested tens of millions of advertising expenses in China's powerful media, covering all parts of the country. The complete and perfect marketing network makes the market share of Langsha products reach one third of that of the whole country. Several major brands of the company have successfully entered thousands of households and become well-known brands. "

Log into the official website of Langsha group, and such an introduction is displayed on the front page.

It can be seen that the company is quite proud of its brand marketing achievements.

In the era when she was keen on using well-known spokesmen, Langsha successively used first-line stars such as Cecilia Cheung, Su Youpeng, Zhou Huajian, Li Xiaolu, and big s as spokesmen.

But in recent years, there are few advertisements on TV screen.

This can be seen from the change of sales expenses of Langsha shares.

In 2013, the company's sales expenses reached 28.81 million yuan at one stroke. In this year, Langsha increased the proportion of TV shopping sales, resulting in an increase of 76.18% over the previous year; in 2014, the sales expenses of Langsha shares were still close to 20 million yuan; in 2015 and 2016, the expenses dropped to less than 10 million yuan. The company said that sales decreased and decreased mainly due to the impact of the industry's economic depression and disorderly competition Advertising and business promotion fees. In 2017 and beyond, the cost has remained between 10 million and 15 million.

At the same time, Langsha shares are gradually fading out of the vision of consumers.

Looking back on the time of long-term control of Longsha stock in 2007, it can be said that "all stars support the moon".

Before and after May 1, 2006, Longsha confirmed to participate in the reorganization of * ST long-term control. In August, Sichuan Yibin state owned assets company signed an equity transfer agreement with Langsha holding, transferring 57.11% of the equity of * ST long holding to Langsha holding at a price of 70 million yuan.

In March 2007, longsa holdings became the owner of * ST long-term holding company, which was approved by the CSRC. On April 13, the stock price of * ST long-term holdings, which had been suspended for nearly four months, rose continuously from 7.18 yuan before the suspension to 68.16 yuan. Among them, the highest charge reached 85 yuan, and the highest increase was 1379.8%.

This group of data, broke the record of the largest increase of A-share reform and resumption set by St Renhe at that time.

On May 30, 2007, * ST long-term control was officially changed to "* ST Longsha", and the backdoor listing was completed. On this day, the stock price of * ST ronsa will rise to 43.71 yuan / share, with a total market value of 3.1 billion yuan.

Listing is the peak?

Nearly 14 years have passed, the share price of Langsha has been falling all the way, and there was only one rebound at the end of 2016. After the second half of 2018, the stock price has never touched 20 yuan again.

In particular, in the second half of 2020, the stock price plummeted again. As of January 8, 2021, the stock price closed at RMB 1.282, with a market value of RMB 1.246 billion.

The low stock price corresponds to the low liquidity: in the fourth quarter of 2020, the total turnover of Langsha shares was 645 million yuan. Excluding ST shares and new shares, the total transaction volume ranked the third from the bottom in the whole A-share market, with an average daily turnover of 7.87 million yuan, an average daily turnover of 494000 shares, and an average daily turnover rate of 0.51%.

The average daily turnover is 7.87 million and the average daily turnover is 494000 shares. What kind of concept is this?

Taking Maotai, Guizhou Province as an example, on January 8, the total turnover of the shares was 11.345 billion yuan, with a turnover of 5.3862 million shares.

Sock industry injected into listed companies?

The low trading volume is only a window to observe the operating difficulties of Langsha.

On January 8, when asked why the company's liquidity was low and the turnover was low, the relevant person in charge of Langsha explained to the reporter of the 21st century economic news: "we mainly because the majority shareholders and the second shareholders hold nearly 70% of the shares, and they all pledge (shares), so the liquidity of stock tickets is poor."

"There is no plan to communicate with securities companies and funds." The person said frankly.

According to the report of the first three quarters of the company, among the top ten shareholders, Langsha holding group holds 42.68% of the shares, while Tibet JuLang Technology Co., Ltd., the second largest shareholder, holds 19.84% of the shares. Both of them are in the state of pledge, with a total pledge proportion of 62.52%.

According to the latest pledge announcement in August 2020, the controlling shareholder, Langsha holdings, pledged 8 million shares in order to supplement working capital. On the other hand, according to the previous Reply of Langsha shares, Tibet JuLang, the second shareholder, acted as a financial investment company and did not participate in the operation of the company.

Langsha shares share price downturn was also explained as the main control.

Langsha shares once responded on the interactive platform that "the secondary market of the company's stock has shown signs of being highly controlled by the main force. In particular, since the lifting of the billboard in Tibet, there are obvious signs of being controlled by the main force. This is a market behavior, which has a certain deviation from the company's fundamentals. "

According to the data, at the end of 2018, the number of shareholders of Langsha was 13135, which decreased to 12201 by the end of 2019. At the end of the third quarter of 2020, the number of shareholders decreased sharply, leaving only 7996.

However, the reduction of shareholders has also become an example of Langsha shares being abandoned by investors.

Put aside the reasons for capital, financial data show that the operation of Langsha shares is going from bad to worse.

In 2019, the company realized operating revenue of 331 million yuan, a year-on-year decrease of 14.59%; net profit attributable to 15.84 million yuan, a year-on-year decrease of 45.69%; non net profit of 8.88 million yuan, a year-on-year decrease of 61.71%. In fact, most of the profits come from financial management income. In 2019, the company uses its own funds to conduct short-term entrusted financial management, and the investment income accounts for 41.78% of the net profit.

In the first three quarters of 2020, the revenue and net profit of Langsha Co., Ltd. fell sharply again: the operating income was 195 million yuan, down 12.9% year on year. The net profit was 14.35 million yuan, down 15.27% year on year.

In addition to not earning money, around 2017, Langsha shares also went on hot search due to being accused of "Iron Rooster does not pay dividends for 20 years".

Since 2018, ronsa shares have finally paid dividends.

Langsha's dilemma is not unique.

In recent years, noble bird, rich bird, La chapel, MetS Bonwe and other clothing enterprises are struggling to save themselves, but the effect is very small.

"Langsha's dilemma almost represents the plight of the industry. From the perspective of its performance, since the backdoor listing for more than ten years, the revenue is almost unchanged. If Langsha can not solve the problem of growth, in the future tide of registration system, it will probably become a fairy stock, forgotten by the market. " A broker pointed out.

For Longsha, it is not entirely without growth point. Longsha socks industry is expected by investors.

On the interactive platform of the Shanghai Stock Exchange, investors from time to time asked whether the company would consider injecting into the assets of ronsa socks industry. An investor put forward: "since long Sha backdoor listing, listed companies have not developed much. Does the company have relevant plans, such as increasing the market value or injecting assets. To tell you the truth, the company's market value of 1.8 billion is indeed very small among the listed companies in Shanghai and Shenzhen. "

Whenever dealing with such problems, Langsha shares said that it did not know that the shareholders had similar plans.

The dilemma is hard to break

Whether or not Langsha socks industry can be injected into the listed companies, as far as it is concerned, it is already in trouble.

An administrative ruling issued by the people's Court of Huangmei County, Hubei Province (Document No. (2019) e1127 Xingshen No. 24) shows that the market supervision and Administration Bureau of Huangmei County has investigated and dealt with the case of Langsha knitting suspected of organizing pyramid selling.

In the process of investigation and punishment, in order to prevent Langsha knitting from transferring or hiding illegal funds, Huangmei County market supervision and Administration Bureau filed an application to the people's Court of Huangmei County on May 7, 2019, requesting to freeze the affiliated fund account of Longsha knitting in financial institutions.

After examination, the people's Court of Huangmei County held that the application of the market supervision and Administration Bureau of Huangmei County complied with the legal provisions, and ruled to freeze the affiliated fund account of Langsha knitting in financial institutions in accordance with relevant provisions.

According to the official website of Longsha group, the business entity of Longsha socks industry is Longsha Knitting Co., Ltd.

Langsha group and its affiliated enterprises are not limited to Huangmei County in Hubei Province, but also in Guangdong, Henan, Jiangxi, Sichuan and Shandong provinces, china.com Finance reported.

Langsha group is to expand its business in this way: to promote "Langsha e + life Pavilion" series franchise stores. Next, to open a franchise store training for training franchisees suspected of pyramid marketing organization model and sales promotion model. At the same time, the enterprises affiliated to Longsha group have produced a series of functional products, including the comfort and air permeability of women's palace hugging underwear, men's magnetic energy stone functional underpants, women's adjustable beauty bra, Longsha Tongluo physiotherapy socks, etc., which are used as "props" to carry out pyramid marketing business in various places.

At the end of 2019, Langsha said in response to this, the operation business of "Langsha e + life Pavilion" franchise stores is a marketing mode carried out by shareholders and related parties, and the listed companies have not participated. Intelligent health care clothing is a series of functional products produced by enterprises affiliated to shareholders and related parties, which are not involved in by listed companies.

Ronsa shares have nothing to do with the above matters? It doesn't seem to hold water.

The reporter of 21st century economic report inquired and found that Zhejiang Longsha Underwear Co., Ltd., a wholly-owned subsidiary of the company, has applied for a number of similar patents.

On March 26, 2019, Langsha underwear obtained a patent right of a hyaluronic acid moisturizing and maintenance one-piece suit (Patent No.: zl201820930235), and a patent right of a hyaluronic acid skin care vest and trousers (Patent No.: zl2018209273578) on May 17, 2019, both of which are finished with hyaluronic acid finishing agent and can play a role in skin care. On January 17, 2020, it applied for the patent of high waisted and abdominal warming pants, saying that there are far-infrared cutting pieces in the waist and abdomen, which can improve the body through far-infrared effect.

The above "brain hole" patent, some industry insiders frankly said, "this may reflect the plight of Langsha stock's performance decline, so that they choose some business of edge ball to take risks."