After the company has developed to a certain scale, it is urgent to break through its various bottlenecks in order to seek greater space for development. Small household appliances exports are now entering the integration stage of survival of the fittest. Under the background of increasing export pressures and domestic sales facing large home appliance companies and foreign companies entering the small household appliance market, in order to further enhance their competitiveness in overseas markets, small Household appliances companies urgently need to seek ways to become bigger and stronger and increase their ability to resist risks. At the same time, they also need more capital to increase their ability to withstand the risks of the export market. Therefore, listing financing has become the preferred strategy and strategic goal for many small household appliances companies. From 2011 to now, many well-known small household electrical appliance enterprises have made their way to the capital market.
There are four main purposes of the company's listing: First, raise funds to solve the company's use of funds; Second, to achieve the standardization of the company's operations, to adapt to the new rules of the larger stage, and keep the company truly advancing with the times; The third is to enter a larger space for enterprise development and discover and seize more opportunities. Fourth is to use the credibility and charisma of listed companies to obtain more human resources and provide convenience for the company’s talent strategy.
However, for many small home appliances companies, the problems of lack of institutional innovation, lack of independent brands, and difficulty in diluting equity have become a stumbling block on the road to listing. If these issues are not overcome, the road to listing will not be smooth.
First of all, the management of many small home appliance companies is still "familial management," and has not yet established a modern enterprise system in accordance with the standards of listed companies. This is a big hurdle for the listing. For example, many small household appliances private enterprises have not achieved a true separation of personnel, finance, assets, organization, and business, and they are still in the “world†situation, so it is difficult to achieve transparent and open market operations. The listed companies require that the financial statements be made public and transparent, be exposed to the sun, and be subject to public supervision. This seems to be difficult for many small home appliance companies that rely mainly on the family's nepotism and like to make small moves in taxation. At the same time, equity dilution in family businesses is extremely difficult. Many employers think that their hard-earned companies have to share some equity with others, and their hearts are inevitably somewhat unbalanced. Not only want to go public, but also want to embrace private rights, which for many small home appliance business owners is a big battle.
Secondly, the main business of domestic small home appliance companies mostly comes from OEMs (OEM manufacturers). The visibility of self-owned brands is low, market share is not high, and the proportion of domestic sales is insufficient. It is difficult to effectively build the ability of enterprises to resist risks. For example, Xinbao Electric and Kangbao Electric and other brands are relatively weak in this regard. Brand advantages, patent protection, and marketing network construction need to be further improved.
In addition, after the listing, we must also prevent the "double-edged sword effect." For most companies, opening the door to the capital market is more simply to solve the bottleneck of the company's capital, and it is more likely to be abandoned for the deeper meanings brought about by the listing, such as changes in the corporate system. It is tantamount to "buying and returning money."
Enterprises must be clear that the huge funds raised by the listing are sometimes life-saving money, and sometimes it will become a kind of burden. How can the money be spent on reasonable planning, otherwise it may block the refinancing channels and make the financing of listed companies? Enter the vicious circle of vicious circles. If a company's operating performance is low and the returns it brings to shareholders are embarrassing, then companies can't continue to grow to raise more funds. As a result, corporate stocks are sold off, corporate resources are shrinking quickly, and business operations are difficult. Even after being delisted, even more permanent is segregated from the capital market. This shows that the listing of small household electrical appliance companies is a "double-edged sword", small household electrical appliance companies should think twice.
There are four main purposes of the company's listing: First, raise funds to solve the company's use of funds; Second, to achieve the standardization of the company's operations, to adapt to the new rules of the larger stage, and keep the company truly advancing with the times; The third is to enter a larger space for enterprise development and discover and seize more opportunities. Fourth is to use the credibility and charisma of listed companies to obtain more human resources and provide convenience for the company’s talent strategy.
However, for many small home appliances companies, the problems of lack of institutional innovation, lack of independent brands, and difficulty in diluting equity have become a stumbling block on the road to listing. If these issues are not overcome, the road to listing will not be smooth.
First of all, the management of many small home appliance companies is still "familial management," and has not yet established a modern enterprise system in accordance with the standards of listed companies. This is a big hurdle for the listing. For example, many small household appliances private enterprises have not achieved a true separation of personnel, finance, assets, organization, and business, and they are still in the “world†situation, so it is difficult to achieve transparent and open market operations. The listed companies require that the financial statements be made public and transparent, be exposed to the sun, and be subject to public supervision. This seems to be difficult for many small home appliance companies that rely mainly on the family's nepotism and like to make small moves in taxation. At the same time, equity dilution in family businesses is extremely difficult. Many employers think that their hard-earned companies have to share some equity with others, and their hearts are inevitably somewhat unbalanced. Not only want to go public, but also want to embrace private rights, which for many small home appliance business owners is a big battle.
Secondly, the main business of domestic small home appliance companies mostly comes from OEMs (OEM manufacturers). The visibility of self-owned brands is low, market share is not high, and the proportion of domestic sales is insufficient. It is difficult to effectively build the ability of enterprises to resist risks. For example, Xinbao Electric and Kangbao Electric and other brands are relatively weak in this regard. Brand advantages, patent protection, and marketing network construction need to be further improved.
In addition, after the listing, we must also prevent the "double-edged sword effect." For most companies, opening the door to the capital market is more simply to solve the bottleneck of the company's capital, and it is more likely to be abandoned for the deeper meanings brought about by the listing, such as changes in the corporate system. It is tantamount to "buying and returning money."
Enterprises must be clear that the huge funds raised by the listing are sometimes life-saving money, and sometimes it will become a kind of burden. How can the money be spent on reasonable planning, otherwise it may block the refinancing channels and make the financing of listed companies? Enter the vicious circle of vicious circles. If a company's operating performance is low and the returns it brings to shareholders are embarrassing, then companies can't continue to grow to raise more funds. As a result, corporate stocks are sold off, corporate resources are shrinking quickly, and business operations are difficult. Even after being delisted, even more permanent is segregated from the capital market. This shows that the listing of small household electrical appliance companies is a "double-edged sword", small household electrical appliance companies should think twice.
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