On Tuesday, January 9, Huashang International released its annual report forecast. Due to the huge investment in the company's production base under construction, the company suffered losses in 2011.

As soon as this prediction came out, the stock price was even more unstoppable... it fell.

When Huashang International first went public last year, the reason why it became a monster stock was because of its amazing performance and high dividends. Otherwise, even if Fang Haohua wanted to speculate, there would be no subject matter.

If any stock wants its stock price to double, two factors are essential, one is the subject matter and the other is strong capital. Only when the two are combined can they generate powerful power and drive the stock price to rise. If there is only one factor, the stock price will not rise much higher.

As a result, the annual report foresees losses this year, and this prediction did not tell any lies. Huashang International did suffer some losses this year, but it was not because its main business was not profitable.

After the annual report is truly released, those who are interested will know that this year, Huashang International's main business, that is, clothing sales performance, has improved significantly compared with the whole year. The reason for the loss is that the largest clothing production base in China is about to be put into use.

According to Wang Ye's requirements, this clothing production base will build hundreds of production workshops in all sizes. This is a complete clothing production industry chain, from facial accessories to ready-to-wear processing, all of which can be completed in the production base.

Moreover, the garment processing factory that Wang Ye requested is not a large workshop like the Lihua factory, which can accommodate more than 500 workers. The garment processing workshops in the new clothing production base are all small, with only about 100 workers in each workshop, but there are many workshops, with a total of forty!

Of course, this has also led to a significant increase in production line procurement costs, and Wangye requires that the production line purchased must be at the world's first-class level!

Because of this, a large amount of profits generated by Huashang International’s clothing sales continued to fill the bottomless pit of the production base, and losses occurred on the books.

Since you have lost money, there will definitely be no dividends this year. The stock price will definitely have no hope of rebounding in a short period of time.

At this moment, retail investors who were originally holding their hands tightly could not sit still and began to sell out. However, there was only selling orders and no buying orders, and the stock price could only press on the limit down.

Although Huashang International has fallen a lot during this period, it is not the worst. Many companies have to issue annual report forecasts due to huge losses. As a result, the stock price fell to the limit several times in a row.

In comparison, Huashang International's stock price has not yet fallen sharply. According to the new valuation given by securities companies, it is expected that Huashang International's stock price will fall to the range of 15-20 yuan.

This time, even Li Qinghuan couldn't sit still. She ran to ask Wang Ye worriedly.

"Mr. Wang, the Huashang International stocks I have in my hands can be sold after 20% of them are lifted. Should I sell them?"

Wang Ye was staring at the computer and looking at a piece of information. When he heard Li Qinghuan's words, he said without raising his head: "Why are you selling it? Are you short of money?"

"Uh... I don't lack money, but I see that many experts have analyzed whether Huashang International's stock price will fall. The most important thing is that you don't plan to take charge of Huashang International yourself. What's the point of keeping the shares there?"

Wang Ye no longer returns to Huashang International, which was Li Qinghuan's own guess. She judged that Wang Ye had earned his first pot of gold at Huashang International, and then he only retained his shares and no longer took care of specific matters.

After leaving himself to work in the cosmetics industry, Wang Ye has indeed done a great job in this industry this year, and the wealth he earned far exceeds what he got at Huashang International.

Moreover, Wang Ye also set up a clothing brand THE  TOP  SHOP here. This company is obviously more potential than Huashang because high-end brands are the most difficult to build.

So Li Qinghuan judged that Wang Ye should not return to Huashang International again. The shares there should be transferred when the three-year ban period expires. Since this is the case, it would be boring to keep his shares, so it would be better to sell them.

After reading the information, Wang Ye stood up and went to the reception area, sat down on the sofa. Li Qinghuan also walked over behind him.

With leisurely crossed his legs, Wang Ye looked at Li Qinghuan and said, "I am the chairman of Huashang International and I have never stepped down. So, I have never left, so why should I go back?"

Li Qinghuan is a little embarrassed, and he thought about it. Wang Ye’s identity as chairman has always been retained, and every few months, he will go back to Huashang International to take a look. It’s not said that he has left Huashang International.

After hesitating for a moment, Li Qinghuan asked: "Now THE  TOP   SHOP has a good development prospect. I feel that it will be able to surpass the Huashang brand in two years. This positioning is relatively high-end, and the profit is much higher than that of Huashang. Moreover, it is fully direct and has a management advantage, so the profit margin is even greater."

From 2010 to 2012, it took only two years to make the clothing brand business model have also undergone a major change. Previously, most domestic clothing brands were mainly franchised, and few were directly sold.

How easy it is to join, the channels are fast and the costs are low.

The common operation at that time was to set up a new brand, find two designers, buy samples on the market, form a plate of goods, and then find a processing factory, first place an order to produce a batch of goods. Then recruit a recruitment team, and the company opened.

With the investment promotion team as the core, we began to recruit agents or franchisees in various provinces and cities. As long as we gain one or two large agents or have one or two single-store franchise customers, we can basically support the operation of the entire company.

Then, even if this new brand survives successfully, whether the company will live well or die slowly depends on many factors, and there is no need to explain in detail.

However, since 2011, perhaps because there are too many clothing brands and there are not so many agents and franchise customers, it is difficult for such brands that mainly engage in investment and franchise to survive.

Think about it, when a new customer wants to open a store, he finds that there are dozens of brand manufacturers asking him to join. When the conditions given are more preferential, the customer's appetite will be greater. It not only depends on the strength of your brand, but also requires more preferential policies.

In this case, those new brand companies cannot recruit agents and franchise customers at all. They do not have the strength to compete with old companies. They cannot compare with their strength and cannot afford preferential policies.

Since 2011, Huashang International has also seen a significant slowdown in opening stores. Fortunately, it is a listed company with a wealthy and strong reputation and dares to give new customers greater preferential policies and subsidies, so it has barely achieved the expansion speed of 3,000 stores a year.

So, what model is popular now?

It is obvious that it is the full direct sales model of THE  TOP  SHOP company founded by Wang Ye!

The domestic market has passed the stage of wild growth and making a lot of money. Now it is too difficult to think of a new brand.

It not only requires your brand positioning to be accurate and your products are distinctive, but also requires your company to be strong and able to support the early difficult stages.

Like Wangye’s THE  TOP  SHOP is the biggest highlight in the domestic clothing market this year!

The brand positioning is high-end, the designer style, strong personality, full direct sales, high-end shopping mall stores!

These factors combined together form THE  TOP   SHOP’s unique charm, and has become the favorite brand of domestic fashion women, and it is also a brand that major shopping malls are trying hard to introduce.

Li Qinghuan is now the person in charge of THE  TOP  SHOP. Of course, she deeply feels the vigorous vitality and prospects of the THE  TOP  SHOP model. From the bottom of her heart, Li Qinghuan is now a little disdainful of the Huashang brand.

That's why she said what she just said.

After hearing this, Wang Ye smiled. He could see Li Qinghuan's thoughts clearly. In fact, her judgment was correct. Huashang brand is indeed a traditional domestic clothing brand. From the perspective of prospects, it is incomparable to THE  TOP  SHOP.

However, the Huashang brand is not the whole of Huashang International. I am afraid that few people can see this clearly.

However, Wang Ye did not explain to Li Qinghuan now, but just told her that since the stocks in her hands are not urgently needed, it is better not to sell them for the time being.

Of course, Li Qinghuan believed Wang Ye's words and no longer paid attention to Huashang International's stock price.

...

On Friday, January 12, when the stock market closed, the stock price of Magic City Jiahua was still firmly closed at the daily limit!

In the past two weeks, the stock of Magic City Jiahua has hit the daily limit for 9 consecutive days! The stock price has risen from 6.5 yuan to 15.5 yuan, tripling.

In the current sluggish stock market, this is the most dazzling star, and it seems to be about to repeat the trend of Huashang International in January 2011.

All the investors and stock review experts were attracted to this stock. Some bold investors began to place orders at the daily limit every day, trying to grab some chips.

After the securities companies issued an analysis report, stock review experts also jumped out to analyze why the stock price of Magic City Home Furnishing rose so high.

In addition, from the news, company performance, development prospects, overall stock market situation, and even the mentality of investors, we compared the current Magic City Home Furnishing with Huashang International, which has just been listed throughout the year.

The conclusion drawn is of course the stock price of Magic City Home Furnishing is expected to repeat the trend that Huashang International shocked everyone's attention last year!

In other words, although the stock price of Magic City Home has been on the rise for nine consecutive days, the rising momentum of the stock price has actually begun. How high can it be in the end depends on the degree of participation of funds.

On January 13, the shareholders' meeting of Jiahua of Magic City was officially held. Wang Ye flew to Magic City and presided over the meeting.

In previous years, Magic City Jiahua held shareholder meetings every year, but basically no one paid attention to them, because even though they knew there would be no major news, who was full and could pay attention to a company's shareholders' meeting.
Chapter completed!