XTEP International Hongkong Listed Olympic Concept As Capital Market Hot Spot

Following the listing of Hongxing Erke, China sports and Anta sports, XTEP International's public offering in Hongkong in from May 21st to 26th is expected to be listed on the main board of HKEx in June 3rd.

"The concept of Olympic sports is a hot spot in the capital market at present, and the time to choose to go public is just right."

In May 21st, people from XTEP international told the newspaper reporter.

Reporters learned that, following XTEP international, Nike, Adidas and other well-known sports brand distributor Baosheng international also began to open the stock market in May 26th, and is expected to land at the Hong Kong Stock Exchange in June 6th.

Reduce OEM ratio

XTEP international IPO plans to issue 550 million shares, 90% international placement, 10% public offering, issuing guidance interval of 4.05 to HK $5.5 per share.

According to this calculation, the minimum amount of funds raised is HK $2 billion 228 million, up to HK $3 billion 25 million.

Like many local sports shoe companies, XTEP international started from OEM business.

A chief executive of a sports shoe enterprise in Quanzhou revealed that XTEP's actual controller Ding Shuibo was only 17 when he started his business, when he joined two friends to raise 1500 yuan.

At that time, the shoe factory of Ding Shui Po was similar to a family workshop. Its business process was to buy raw materials from the market first, then to the nearby families for processing and production, and then to get the market to sell.

Since then, Ding Shuibo and many local sports shoes enterprises, relying on footwear OEM business started rapidly.

At present, XTEP international has developed, produced and sold sports brand goods, and has the Chinese franchise rights of XTEP, Colin brand and Disney sports series brand.

In 2007, XTEP's international turnover amounted to 1 billion 360 million yuan.

In the recent speech of XTEP international chairman and President Ding Shuibo, the reporter saw that after developing its own brand, the retail business now accounts for more than 90% of the company's business.

The proportion of clothing and footwear of XTEP international is 1/3 and 2/3 respectively, and the future target is half of each.

Ding Shuibo made it clear that the proportion of OEM business in the company will gradually decrease. Last year it was 7.8%. The target of this year's control is less than 2%, and the future will be reduced to about 1%.

To become an international brand

"With the help of capital market, we can rapidly promote the rapid development of brand."

XTEP International believes that.

The reporter has learned that about 24% of the funds raised will be invested in the acquisition of brand and new projects. About 22% will be involved in media advertising and brand promotion activities. About 17% will be used to expand and improve distribution networks, and about 19% will be invested in the expansion of garment production plants.

"Takeover brand takes outdoor sports brand, children's shoes and so on as the goal, regardless of international or local brands will consider."

XTEP international sources said, "XTEP's investment in Olympic marketing this year will not be less than 200 million yuan."

"Our goal is to become the world's brand. Nike spent 40 years to achieve this goal. Adidas spent 80 years believing that we could go faster."

Ding Shuibo said.

At present, the sporting goods industry in China is developing rapidly, and the market share is constantly concentrated on a few well-known brands.

According to former sharp (Shanghai) Business Consulting Co., Ltd., the sales revenue of the top 5 brands accounted for 40% of China's sports apparel market, while Nike and Adidas always ranked first and second.

Anta sports, which is adjacent to XTEP international, was listed on the Hongkong stock exchange in July 10, 2007. It used HK $3 billion 100 million to expand the scale of production and expand its marketing network for brand promotion. It relied on strong capital, rapid expansion of sales channels and brand reputation. The orders in the first three quarters of this year increased by 50% compared with last year, and the gross margin level increased from about 33% to 38%.