Semir Shareholders Reduce 135 Million Shares Of Founder Family Continued To Reduce Holdings Questioned

Recently, the changes in the ownership of domestic casual wear and children's clothing giant Zhejiang Semir dress Limited by Share Ltd (hereinafter referred to as Semir dress) have aroused widespread concern and discussion in the market.

Semir apparel shareholders reduce their holdings by 135 million shares

Semir clothing recently announced that the company recently received the letter signed by Qiu Yanfang, its shareholder, on signing the "share pfer agreement", indicating that she signed the share pfer agreement with Wang Yaohai on May 31, 2019.

Statistics show that Wang Yaohai is the actual controller of OPPLE lighting Limited by Share Ltd.

According to the agreement, Qiu Yanfang pferred the agreement of 135 million shares of 5% of the total share capital of the company to Wang Yaohai.

After consultation, the price of the proposed share pfer is 9.69 yuan per share and the total pfer price is 1 billion 308 million yuan.

After this change, Qiu Yanfang still holds 169 million shares of Semir clothing shares, accounting for 6.26% of the total share capital of the company; Wang Yaohai holds 135 million shares of Semir clothing, accounting for 5% of the total share capital of the company, and has become more than 5% shareholders of the company.

Although the changes in interest rights did not lead to changes in Semir apparel controlling shareholders, real controllers and their concerted actions, such a large reduction and assignment still caused concern and heated debate.

Past information shows that Qiu Guang, founder and chairman of Semir group, and Qiu Yanfang are the father daughter relationship. Qiu Yanfang is one of the Semir costumes real controllers.

For the reasons for the reduction, Semir clothing has previously been interpreted as "shareholders' personal capital needs of Qiu Yanfang". Taking into account the fact that the company's actual controller and related party share a relatively high share, the liquidity of the company's stock market is poor, and the reduction is also conducive to enhancing the market liquidity of the company's stock.

Shareholders frequent reduction, was questioned "cash out"

In addition to Qiu Yanfang's larger share pfer, Zhou Pingfan, another partner of Semir apparel, has also been quite frequent in reducing her holdings.

Reporters in flush query Semir clothing since July 2018 to date nearly 35 shareholding changes, found that a total of 31 times are Zhou Pingfan's reduction, the total reduction of more than 50 million shares.

For Qiu Yanfang and Zhou Pingfan, the small investors of Semir clothing have expressed doubts and concerns.

In January 2019, on a stock bar online exchange, a few small shareholders suggested that the couple should sign a pfer agreement with the institution and complete the equity reduction at once, so as to reduce the market sentiment.

At that time, Semir clothing director said that "this valuable advice and suggestions will be conveyed to shareholders in a timely manner."

And after the reduction operation in May 31st, there were concerns that whether Semir's recent "annual report data was unfavourable and the operating difficulties appeared" could only make its executives "cash in and speed up".

One of the reasons for the outcry is Semir's rising stock of clothing.

At the end of 2018, the balance of Semir's clothing inventory jumped sharply, increasing by 85.28% to 4 billion 417 million yuan compared with last year.

Generally speaking, the larger the inventory of a garment enterprise and the slower the inventory conversion rate, the less conducive to its smooth operation or abundant capital.

On the issue of reduction, the reporter called Semir apparel investor relations department to ask, as of press time, has not yet received a reply.

Author: Zhou Hongyan