Red Dragonfly Wants To Finance 1 Billion
Following the completion of the listing of consumer brands such as BELLE, Anta and Metersbonwe in H shares and A shares, a large number of domestic shoe and clothing Brand Company have been listed on the official schedule or have entered the listing process. Qian Jinbo, chairman of Zhejiang Red Dragonfly Group, recently told the daily economic news in Beijing that it is accelerating its A share listing process. The group plans to report its application materials to the SFC next year, and will complete the listing in 2010. It expects to issue 100 million shares and hopes to raise funds from 500 million to 1 billion yuan.
At present, the red dragonfly is in the guidance period of listing. Qian Jinbo said the first IPO underwriter was CITIC Securities.
Red Dragonfly Group's business scope includes footwear, sports goods, clothing, leather goods, education, finance and other fields. In 2007, its sales volume reached 2 billion 500 million yuan, and its profit margin reached 10%. In the recent 3 years, the sales growth rate reached 20%, and the profit growth rate was around 11%. The group is pushing forward the sales mode of integrated stores to change the way of single store sales of single products in the past.
Qian Jinbo said that in 2007, sales of red dragonflies amounted to about 2 billion 500 million yuan, with a profit margin of 10%. From 2005 to 2008, the annual sales growth rate reached 20%, and the profit growth rate reached 11%.
At the end of April this year, there were more than 30 shops in the group. According to the plan, the integration store mode will develop to 500 in the next 3 years, and the sales of Red Dragonfly will reach 5 billion yuan. No matter for the expansion of channels or terminals, red dragonfly has great demand for funds at present.
However, A shares are in the doldrums. Qian Jinbo said that the current downturn in A shares is not conducive to the listing of shares, but this is a good time for companies to prepare for the listing.
In recent years, domestic shoe and clothing brand enterprises have launched a tide of listing. Following the listing of Lining, seven wolves and Hongxing Erke in the past few years, BELLE and Anta sports also listed on the Stock Exchange last year. In August this year, Metersbonwe also landed in the SME Board of Shenzhen Stock Exchange, and the Foshan footwear industry shares were first approved by the securities and Futures Commission on Saturday.
Qian Jinbo believes that consumer brands will be listed more and more, these enterprises mainly focus on brand and channel. Red dragonfly is also dominated by channel, not production, channel mode is mainly exclusive stores, the main brand and sub brand sales terminals are more than 4000 nationwide. At present, the red dragonfly is also talking about cooperation with Spain and Italy brand, and then enters the shopping mall channel.
Besides the footwear products, the Red Dragonfly Group also deals with leather products, clothing, accessories and other products.
Sun Jujian, a researcher at brand marketing and strategy research and Anhui Nongda University of light textile engineering and art, believes that in the days when the terminal is king, the product is homogeneous, and even the decision-making is homogenized, the brand competition of these enterprises is concentrated on the contention of the terminal resources, and the quantity and quality of the terminals have become one of the sources of these enterprises' core competitiveness. As the cost of the shops increases year by year, a street store with a good market and large area will be needed hundreds of millions of dollars. Brand competition is more and more reflected in the competition of the overall strength, especially the financial strength.
And financing difficulties have always been an important reason affecting the growth of domestic shoe and clothing enterprises. Compared with bank loans, listing financing is permanent and without return, it can significantly reduce the financial cost of enterprises, which is unmatched by general enterprises through primitive accumulation. Because the capital invested in the listing is permanent, and no need to return, it can significantly reduce the financial cost of enterprises, avoid the influence of financial policies such as the state's contraction of money and so on. Moreover, the amount of funds raised is large and fast, which is unmatched by general enterprises through primitive accumulation.
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