Sports Shoes Listed On The Joy And Pain

RMB appreciation, raw material prices, macroeconomic regulation and control resulted in tight money, rising labor costs, recruitment difficulties......

Many Chinese shoemaking enterprises have been very familiar with their current difficulties.

In the past ten years, the situation of making orders is different, and the repeated profits have made their living environment more and more dangerous.

A large number of shoe-making enterprises are seeking to raise funds urgently needed through listing.

The shoe industry is in trouble and listed as a new financing tool.

A few days ago, in Jinjiang, Fujian, Chen Dai Town, reporters learned that before and after the Spring Festival, there were 30 years of shoe making history in Jinjiang shoe enterprises, the first round of closure has occurred, and hundreds of factories have shut down. According to industry analysis, this situation will continue, and small and medium-sized enterprises will be phased out.

It is worth mentioning that here is the "Hometown" of CCTV listed companies, such as 361 degrees, del Hui, and gold lake. This area, which is only 38.8 square kilometers, has accommodated more than 3000 shoe enterprises and supporting enterprises, employing more than 300 thousand people. The locals once exported their production shoes to foreign countries as a major channel for getting rich, and at the moment, they had to consider new ways.

"Packaging fees increased by 30% to 50%, soles increased by 30%, and technical workers' wages increased by 30%."

On the one hand, RMB appreciation and rising raw material costs and workers' wages, on the other hand, the bank's tightening of money and the increase of private lending interest, the enterprise's capital chain unprecedented embarrassment.

"Triangle debt can also kill people, owe too much money, and the outside accounts will not come back, so many enterprises are so down."

Mr. Shi, who has two buildings with five storeys and tall buildings, has been engaged in shoe business since the 90s of last century. According to him, most of the cheddar enterprises started with family shops have been in debt relationship with each other.

Usury is a common way of financing. Generally, millions of loans are borrowed from each other. Under the oppression of high interest rates, many enterprises often pay debts by assets.

It is understood that the shoe enterprises in Chen Dai town are only about half of the peak period, and some of the brand enterprises have begun to move out, most of which are in disguised form of bankruptcy.

Data show that 90% of Jinjiang shoe enterprises financing difficulties, and 80% of export dependent enterprises are in a dilemma.

According to the official statistics of Jinjiang, in the first quarter of 2008, 309 of the 712 taxpayers of the shoemaking enterprises in the city were in the same period of decline or zero storage, accounting for a decrease of 40% yuan compared to the same period of last year, compared with a decrease of 32 million 770 thousand yuan.

In view of the above crisis, at the end of 2006, the first local level listing office was established in Fujian province. The Jinjiang listing office began to carry out substantive work and prepared to solve the urgent need for the shoe enterprises.

In March 2007, Lan Banghua, the chief representative of the Fujian provincial stock exchange, served as assistant mayor of Jinjiang to assist local enterprises in listing. He was also the first professional person appointed to the county level city by the Shenzhen Stock Exchange.

In the turmoil of small and medium-sized enterprises in bankruptcy and pformation, large-scale enterprises in Jinjiang are brewing a big campaign - listing financing.

In 2007, Anta (02020, HK) was successfully listed in Hongkong. In June this year, second Jinjiang sporting goods company XTEP International (01368, HK) traded on the HKEx.

The same as the Jinjiang footwear sports brand PEAK, Jordan sports, 361 degrees and so on also entered the countdown to the market.

This annual production of 1 billion pairs of sports shoes, the market share of the country's total 40%, the world's 20% largest Chinese shoe industry base, the high profile announced that it will create the "Jinjiang plate" by 2010.

According to information, "up to now, there are 65 listed companies in Jinjiang, and 49 listed companies are listed."

In an interview with the daily economic news, Lan Banghua said that in order to encourage more Jinjiang enterprises to go public and create the Jinjiang stock market, the Jinjiang municipal government intends to produce another about 20000000 yuan to encourage listed companies and listed reserve enterprises in addition to the 15 million 600 thousand yuan financial reward that has been fulfilled before.

It is understood that 10 listed companies in Jinjiang have successfully raised 8 billion yuan.

Successful listing: XTEP International's successful listing

In June 3, 2008, XTEP International (1368.HK) was officially listed on the stock exchange of Hongkong. It became the third Jinjiang sports shoes manufacturer to succeed overseas (IPO) after ChinaHongxBR9.SI and Anta sports (2020.HK).

It is reported that XTEP international listed a total of 550 million shares, raising about HK $2 billion 230 million, not only for XTEP countries

The long-term development, domestic and foreign acquisitions and investment in new projects have provided ample funds, marking the establishment of a modern enterprise management system and demonstrating the determination of XTEP to grow into a world brand.

Many sports shoes manufacturers in Jinjiang start from the OEM (OEM) business. With the advantage of low cost of domestic labor and raw materials, many enterprises earn "first pot gold".

XTEP international is no exception.

A senior official in the sporting goods industry 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.

However, as the demand for domestic sporting goods continues to expand, XTEP also starts to walk with "two legs", and at the same time doing well in the international market, it begins to attack the domestic market.

XTEP uses international experience to solve R & D, modernize its own factories to solve production problems, use contacts to solve distribution channels, invite celebrities to become image spokesmen, and promote their brand by way of entertainment marketing. This differentiated brand promotion strategy is sought after by the market.

Of course, XTEP is a sports brand after all. It can not be completely divorced from sports marketing.

In October 2004, XTEP formally signed up to become the only partner of the sports industry in the Tenth National Games, while sponsoring the Jiangsu, the PLA and other delegations to receive the award equipment.

Thanks to the excellent performance at the ten sports meeting, XTEP's brand influence in the industry and sports circles has been greatly improved, and officially entered the first group of sporting goods in China.

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.

Last year, XTEP international sales amounted to 1 billion 360 million yuan.

However, Ding Shuibo said recently that XTEP international will further increase its own brand development in the future, and gradually reduce the proportion of OEM in the company's revenue. "2007 is 7.8%, and this year's target control is less than 2%, and it will drop to about 1% in the future."

Ding Shuibo said.

Speaking of the benefits brought by the listing to XTEP international, one industry believes that on the one hand, XTEP initially adopted the way of family management, which has gradually changed in recent years, and the listing will help enterprises to establish a modern enterprise management system in an all-round way. On the other hand, the funds raised are conducive to the sustainable development of enterprises in the future, and the speed of XTEP's international growth to the world brand is accelerated through the acquisition of domestic and overseas products.

Since 2008, due to the continued depreciation of the US dollar, the prices of raw materials such as oil have continued to rise, and many industries, including the sporting goods manufacturing industry, have been hit.

CCTV's economic channel survey also showed that many small and medium shoemaking enterprises in Jinjiang have varying degrees of losses, and the industry shuffle is inevitable.

XTEP international is successful at IPO at this time and will have enough capital to make acquisitions.

XTEP international insiders told reporters 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.

"The acquisition brand takes outdoor sports brand, children's shoes and so on as targets, and both domestic and foreign brands will consider it."

This person said, "this year XTEP's investment in Olympic marketing will not be less than two hundred million yuan."

But listing is not a versatile way to finance, and Fujian's brand Quanzhou's dragon is a good example.

Suspension of the market case: Xi Long listed on the eve of strange stop

As early as June, the Quanzhou sports brand, Xi long, who launched the listing plan in Hong Kong, originally planned to officially land on the Hongkong stock exchange in July 11th. However, just a week before its listing, Xi Dalong announced the suspension of its listing plan, and became the first company to announce the suspension of the listing plan in the second half of this year.

Founded in 2001, Xi De Long is mainly engaged in the development and wholesale business of "shoe brand" shoes, which has been growing rapidly in China's two or three tier cities, mainly in Southwest China and Northwest China, with sales revenue of 1 billion 296 million 400 thousand yuan in 2007.

As of June 20, 2008, the company has established more than 3000 retail outlets through 24 distributors.

Xi long long listed before the action is also spectacular, so that the industry attention.

In June 27th, he made a public offering in Hongkong, planned to complete the offer in July 3rd, and officially launched in July 11th.

The company planned to sell 500 million shares, with a price of HK $1.38 to HK $1.98 and a scale of HK $6.9 to HK $990 million.

The Hongkong public offering began in June 27th and ends in July 3rd. It plans to start trading on the main board of HKEx in July 11th.

Goldman Sachs (Asia) Limited and Kai Ji finance are listed sponsors.

The company originally planned to use the net proceeds of 33% of the global sale for the brand and publicity activities; 24% of the net proceeds were used to expand the sales distribution network, including natural growth and selective acquisition distributors, through the company's distributors; 15% of the net proceeds were used to expand production facilities and purchase production equipment; 6% of the proceeds were used for the implementation of the information management system; 15% of the net proceeds were allocated to long-term R & D expenditure, including the purchase of research and testing equipment, recruiters, salaries and training for R & D centers, and the development of new products, and the remaining funds would be allocated as general working capital.

However, the slump in the Hongkong stock market has affected investors' confidence and fettered the pace of mainland enterprises going to Hong Kong to go public.

Just as everyone agreed that the listing of the project was in full swing, in July 3rd, he announced in a notice at the Hongkong stock exchange, "because the company needs more time to consider the new situation that is now known, the company and its sponsors decide not to make the global sale according to the original schedule."

Hongkong stock market is not as good as it imagined. During the stock market, Xi Long lung has not been favored by investors. As of now, the amount of margin subscription is still millions of dollars.

And the new shares in the same period with the new stock, Tianyi fruit, Zhuo Zhi holdings and so on also failed to win the market admiration.

Analysts believe that the continued downturn in Hong Kong stocks is the main reason why Hongkong's new shares are not welcomed by investors.

Suddenly, a lot of people in the industry were not expecting it.

Some media even suspect that the listing of Xi De Long has been stranded, which is related to the latest "online fraud".

In this regard, from Sun Xiangtao, chairman of the board of directors of Xi De long, to President of the office of the president, all insisted that "nothing is the case".

"In the bear market, the issue of new shares is actually a very normal thing."

A securities analyst in Xiamen believes that this is mainly due to the bad market.

"It is estimated that the suspension of the listing is also expected to wait for better timing of fund-raising."

Listing positive case: PEAK actively seeking listing blueprint

Although XTEP (01368.HK) hit the listing price on the first day in June, 00977.HK was more shelved in July 2nd against the backdrop of weak Hong Kong stocks. However, with the craving of funds, the impulse of Jinjiang sports footwear industry cluster to go to Hong Kong is still unchanged.

"I can't disclose the details of the listing now. I can say that, though the factors of capital market are