chains are often inconsistent existing accounting

Dong Yang securities times reporters as an important new business, chain-like Enterprise gradually become the darling of the capital market. Securities Times reporter was informed that at present there are a large number of chain enterprises are actively preparing for a share of first-onset (IPO) listing matters, including the Guangdong large chain drugstore, Hunan, Jiangxi happy LBX pharmacy medicine chain-like Enterprise; red flags in Chengdu SuperCity, Chengdu enjoyed the sincere department store retail chain Shenzhen zhonghang fitness club fitness chain; Yong Qi salon, East field, Guangdong Vanguard hairstyling, beauty salon chain, as well as great taste duck neck, South beauty restaurant chain. However, not all of chain enterprises IPO is governed by policies to encourage. Reporters learned from the many investment bankers,Due to the policy limit, for restaurants, bars, beauty, fitness, real estate brokers, KTV, foot bath, seven types of chain enterprises, listed as a share of time is not appropriate. But for a brand of medicine, Department stores, home appliances, hotels, such as clothing, household items, automotive service chain enterprises, their a-share IPO there are policies to encourage and support.In addition, in the process of listing, chain-like Enterprise easy there are some common problems.����GF one investment banker pointed out, poor single store profitability, offsite replication is not strong, clear brand strategy, the high rate of indebtedness, financial irregularities, and so on, is a chain-enterprises before the problem must be solved. Regulators recently held in Xiamen in 2011Training will also point out that the sponsor representative: "encourage listings of chain retail, brand management, but pay attention to the risk of rapid expansion of such enterprises, requires verification of every franchisee, concerned about whether it can continue to operate.����"Chain-like Enterprise is developing rapidly as domestic consumption continue to grow, various types of chain enterprises achieved rapid development in recent years. According toFigures showed China chain store and Franchise Association, 2010 sales of Chinese chain hundred enterprises amounted to $ 1.66 trillion, an increase of 21.2%, an increase higher than the total retail sales of social consumer goods 2.8%. This reporter has learned, according to industry classification, and domestic chain businesses are no longer limited to only work in the household appliance industry, catering, the clothing industry, medicine, and department stores zeroSales industry, also cover most of services trade. Including education, travel, hotels, real estate services, cosmetics, tobacco, photography, print, and so on.����According to shop morphology, taxonomy, chain shops consists mainly of direct store and franchise stores. But compared with foreign countries, but the scale and the concentration of chain enterprises in China is still low. Haitong securities researcher points out that, in Europe and the developedCountries, top chain sales usually account for retail sales of consumer goods to 40% per cent of the total, far higher than the proportion of 2010. According to an independent third party research Wo Advisory statistics, as of now, my above designated size (annual revenues over $ 5 million) medical stores more than 15,100, above designated size (annual revenues 10 or more) home appliance chain enterprises up to 231, with above designated size (annual revenues over $ 5 million) retail chain with 2,274, above designated size (annual revenues $ 2 million) hotel chain enterprises up to 14,300, above designated size (annual revenues over $ 10 million) estate agency chains with 679, above designated size (annual revenues 20 or more) restaurant chain with 349, above designated size (annual revenues over $ 5 million) fitness chain count reached 53. "From the perspective of the experience of developed countries, and size of chain enterprises in China also have a lot of headroom for the future. But, in relation to part of the chain retail, at present there was market saturation and the problem of excessive competition in the region, which need toChain to renew the correct brand strategy and market position, on the other hand driven way of some large chain enterprises must move towards consolidation.����"Wo Advisory Managing Director Cheng Jianhui's view. Seven types of chain retail IPO-temporary disruption of chain industry in recent years have shown high growth has attracted a lot of VC. Reporter has incomplete statistics show that up to 20November 11, over 100 chain enterprises have obtained from a VC financing, has covered almost all of the chain business. However, not all VC has a forward-looking investment perspective. Reporter was informed that the current policy not to support food, beauty, fitness, real estate brokers, bars, KTV and foot seven types of chain enterprises IPO.Ping an securities one investment banker pointed out, revenue recognition irregularities, financial confusion is most retail chain common problems existed, but the performance is particularly evident in the seven types of chain-like Enterprise. In particular, the bar, KTV, foot bath belonging to the entertainment industry, lack of relevant industrial policy support, poor social benefits of such listings; beauty, fitness and quite new formatIt had no precedent for listing, the existing business model maturity requires further observation; Quanjude restaurant industry diablo 3 gold, Hunan, Hubei, some businesses, such as listing of precedent, but the industry still many problems, easy financial package or fake, on the auditing more difficult to grasp. It was also one Southwest Securities Investment Bank said "the current chain business in these categories belong toCaution recommended ranges, even IPO material was counsel out back or queue indefinitely. "Restaurant chain industry, for example, Cheng Jianhui pointed out that the catering Enterprise normative generally poor, the income and cost in financial statements cannot be reliably measured, paid in taxes, employee social security and other aspects, there still exist many problems. In addition growth there is considerable uncertainty, lack ofSpent sustained profitability, and some specialty shops lack of replication, life expectancy in many catering only for 2-3.����Taking into account the community's growing concern about food safety issues, food enterprises listed on the road is even more dismal. Again a case of fitness chain, guangfa securities one investment banker pointed out that, as an emerging industry, most fitness chain-like Enterprise profitsForce has to be raised, mainly business model relies on membership fees there is a question of sustainability.����Sustained profitability concerns during regular audits, regulators are often the most concerned about the continuing profitability of the chain. Foregoing Southwest securities investment banking sources, "in accordance with the requirements for chain enterprises, sponsor institutions requires at least verification 70% Above the shop of earnings, for the franchise to all verification. "" Chain stores are mostly adopted MOM, or self-employed business models, due to lower taxes, smaller coupled with operational risk, many chain stores accounted for a large proportion of enterprises. This model there are two problems: first, because headquarters to store loose management of, storeEarnings usually vary; the second is a listed company must have the complete legal entity, but too many chain stores, are more easily listed the main problem of nonstandard.����"The people think. Cheng Jianhui is recommended, chain-like Enterprise dealing with direct store and franchise relationships. Stores ' proprietary high quality as far as possible, and this enhanced headquartersControl on the other, in operating results reflected in the consolidated financial statements, you can quickly meet the listing requirements of the performance threshold.����In particular, the foregoing guangfa securities investment banker pointed out that, irrespective of the retail chain for companies, there must be at least 10 or more profitable than strong store support, so will it be possible to market success. In addition, some ofBecause the regional characteristics of chain enterprises stronger, less offsite replication are more prone to sustained profitability of weaker, on the future of growing uncertainty. Pastry team dietary chain Wang in Shenzhen and Shenzhen Shun electric home appliance chain, for example, the reporter was informed that both Shenzhen local chain several years ago has started a-share IPO plan, but because of offsite replication of business models toForce is not strong and eventually ran aground.����Financial regulatory issues to be ironed because affiliates more for chain and dispersed, financial management and norms is quite difficult, so its financial regulatory issues are more easily influenced by regulatory authorities are particularly concerned. "Chain-like Enterprise financial norms reflected problems usually have two aspects, nonstandard financial systems on the one hand, the other isTo steal financial fraud issues arising from tax evasion. In respect of financial systems, chains are often inconsistent existing accounting, the accounting policies used is incorrect, accounting documents are not regulations, and so on. In respect of financial fraud, do not open or less invoicing, meter revenue diablo 3 power leveling, much less considering cost and concealed accounts of phenomena such as the more.����"Preceding ping an securities investment banker said. In addition, the chain enterpriseAlso easier to regulate the operation of other problems, such as unpaid or low paying employee social security and Housing Fund, and because wages are too low causes great loss of personnel risks. Foregoing guangfa securities investment banker pointed out that the chain solves the problem of a large number of social and employment, but for cost-saving reasons, some chain-like Enterprise has reduced staff of social welfareSuch listings does not help create a good social benefits, is expected to be listed in the future employee benefit audits will become more and more restrictive.