Wu Zhize faced the phenomenon of separation of powers and the phenomenon of good news, Wen Cheng, currently suffering from widespread pain

The Annunciation and Wu Zhize faced another qualitative change. Did he dare to let go? This has also become a question of universal significance for the torture of Wen's business. It has expanded the family workshop into a company, and the Saint Angelo achieves the accumulation of quantity. Combining family businesses into a group company, Xioxiao has taken a big step forward; the company has been delivered to professional managers to manage the separation of ownership and management rights. The Announcement has gone one step further. Now the market demands share-sharing, Qixiong and Wu Zhize. Again faced with a qualitative change, he dared to let go? This has also become a question of universal significance in the torture of Wen's business.

At the end of 2005, Zhixiu Group Chairman Wu Zhize spent 6 million yuan and held a show for his clothing brand in Dunhuang Mingsha Mountain, aiming to pursue the original inspiration that the culture was brought to the company. Now, Wu Zhize has to do a bigger show to leverage the capital market to complete the emergence of family business to modern corporate governance. The opening of this big show is not as good as Wu Zhize's.

The China Securities Regulatory Commission's scrutiny committee held its 38th meeting in 2006 on September 19 to review the Announcement of IPO (Annual Public Offering) of Baoxi Bird and Shandong Dongfang Ocean Technology Co., Ltd. As a result, the Oriental Ocean succeeded in leaping Longmen, but it was reported that the birds had their wings but were kept out of the gate.

Market frustration

Wu Zhize, chairman of the Annunciation Group, said to the outside world that the reason for the failure was that it lacked some materials.

He also said that the Annunciation must continue to go public. Market analysts believe that Wu insists on listing because it is an opportunity for the company to completely withdraw the color of the family business, establish a modern corporate image, and expand the company.

"The Annunciation didn't pass. Is it difficult to get listed?" A Wenzhou enterprise owner in Zhejiang, with two or three factories, was shocked when he heard that the Annunciation had failed to pass the conference. In his opinion, the Annunciation is one of the best companies in Wenzhou, and it seems hard to imagine that the Annunciation will not pass.

The Annunciation has a high prestige in Wenzhou and is the largest taxpayer in Yongjia County. The chairman of the Annunciation Group, Wu Zhize, is also a local leader. The Annunciation Bird will not be able to make it on the market and it has caused a lot of shock among Wenzhou businessmen.

In fact, the Shengxiu Group completed the joint-stock reform in 2001. In that year, Shengxi Bird Group, as the main sponsor, and Wu Zhize, the chairman of the joint company, and five individual shareholders, established Baoxi Bird Co., Ltd. The group company injected suits, shirt production lines, factory buildings and other assets into the joint stock company. Wu Zhize and others invested in cash.

Among them, the group company holds 65% of shares, while Wu Zhize and others hold the remaining 35% of shares.

According to the pre-announcement of the Announcement of the Announcement of the Annals of the Annals of the Year, Announcement Bird intends to issue 28 million shares on the Shenzhen Stock Exchange, which constitutes 28% of the total share capital. The proceeds from the issuance will be used to expand the chain marketing network and be used to produce 950,000 pieces of high-grade shirts annually. Pipeline technological transformation project, and new product R&D center technological transformation project. Of which, the chain network has invested 120 million yuan, the shirt line 48.74 million yuan, and R&D technological transformation 19,230,000 yuan.

The birds that got up early had worms and did not think about it. The confident bird of euphoria did not catch any insects. On the phone, the sentiments of the board members of the Anniversary Group were a bit lost. "For the time being, we will not promote this matter." Internal staff of the company also said that it is still not clear how to proceed next.

Urgency

The Annunciation was once a typical Wenzhou family business. As early as 1980, Wu Zhize and his brothers started a family workshop company. In 1996, Wu and two other garment companies established a group company and resigned relatives and family members. Family businesses have taken a big step toward modern enterprises. The Annunciation used this to become one of the top 10 clothing brands in the country.

However, after entering the year 2000, the situation is changing rapidly. As of 2003, there were already 56,000 garment manufacturers across the country and the competition was fierce. The corporate structure of the group has been difficult to support rapid development.

Many companies began to seek new breakthroughs through listings. As of now, there are more than 70 clothing stocks in Shanghai and Shenzhen. Among them, companies such as Youngor, Shanshan, Hongdou, and Keno Technologies become leading companies.

Prior to the listing, the four companies had an annual production capacity of 600,000 sets, 300,000 sets, 250,000 sets, and 200,000 sets of Men's suits. But now, these four companies have respectively formed 1.5 million, 600,000, 570,000 sets of annual production capacity, an average increase of about 2.5 times.

Although the company reported that the company had established a stock company in 2001, it has not been listed and has missed the best development opportunities. The reform of the institutional framework and the overall improvement of the brand as soon as possible through listing have become an urgent task for the development of the Annunciation.

De-familyization

Chen He, a researcher at the Business Research Institute of Beijing Technology and Business University, believes that changes in the corporate governance structure should be the biggest appeal for private companies to go public. The development of the Annunciation for the past 10 years confirms his analysis.

In 1996, after Zhi Zhize established the group company, he continued to dilute the color of the family business and strive to establish a corporate governance structure that meets the needs of development. Resigning relatives was the most direct action of his reform at that time.

After the establishment of the stock company in 2001, the company reported that the de-familyization went deep into the separation of ownership and management rights.

Wu Zhize and the group company where his entrepreneurial team is located are no longer responsible for operating assets, mainly through equity management. The joint-stock company that owns the operating assets began to manage through managers.

According to the Annals of the Annals of the Annals, currently more than 50% of the senior management personnel of the stock companies have been introduced from outside. A general manager, three deputy general managers and a chief financial officer of the company are all employed talents with experience in clothing management.

The transformation of a family-owned enterprise into a group enterprise is a transformation. The establishment of a joint-stock company and separation of ownership and management rights is a change. However, such reforms are still unable to meet the market demand. Equity should be dispersed, and the solution to solve the problem that the major shareholder should be single and become a new market requirement. In the past few years, Chinese investors have already formed a new understanding of this.

This has become a new challenge for Annunciation and Wu Zhize. At least for now, he is not determined to solve this problem. The prospectus shows that prior to the issuance, the company's founder, Baoxi Group, took up 65% of the shares, and Wu Zhize, Wu Zhensheng, Chen Zhangyin, Wu Wenzhong, and Ye Qinglai and other 5 natural person shareholders held 16.50%, 8.20%, 4.90%, and 4.90 percent of the company's shares, respectively. After the issuance of % and 0.50%, the direct and indirect shareholdings of the 5 natural person shareholders were 26.86%, 15.26%, 12.89%, 12.89% and 4.10%, respectively, which together held 72% of the shares. The company’s publicly issued shares were listed as 28%. Such a stock distribution structure means to remove 28% of the shares issued to the public and the remaining shares are all held by 5 large shareholders. Under this structure, the listed company is significantly controlled by the five major shareholders. This time the listing will fail, the newspaper reported that the reason for the lack of part of the declaration materials. However, the concentration of equity may also be one of the important reasons.

Distribute shares

According to the Annals Announcement of the Annals of Birds, the reasonable structure of the 5 shareholders of the company can effectively achieve equity checks and balances to ensure scientific decision-making. Analysts believe that before the listing, it is true, but the start-up shareholders hold 72% of the listed shares, at the same time lack of necessary checks and balances of strategic investors, will inevitably lead to the protection of the views of small and medium investors.

This actually reflects the thinking of the family business.

Chen believes that this is a psychological barrier that Wenyou needs to crack. To go public, family businesses cannot always think that the more shares they hold, the company is its own, and it is afraid of losing control over the company if it reduces the proportion of shares held.

Fortunately, the businessmen in Wenzhou area have already begun to try and change their shareholdings. A typical event is: Wenzhou Xia Meng Group and Italy Zegna Fashion Group Co., Ltd. set up a joint venture garment company with 50% shareholding. The chairman of Xia Meng Group voluntarily gave up the post of president of the joint venture company.

In May, eight local companies in Wenzhou set up a strong force lock group. The company changed the structure of the family business. Each of the eight fund-raising companies sent one person to the board of directors. Equity dispersion and a reasonable number of board of directors ensure that the company's decision-making is democratic and scientific. At the same time, Qiangqiang Group also clearly stipulates that the immediate family members of all shareholders must not enter the group management.

These practices are similar to those in the same year when Wu Zhize completely removed his relatives, but they are more rational. Wu Zhize, a man full of dreams, will go even further.