Letter Of Intent For The Public Offering Of The Footwear Industry

According to the securities times, in November 16th,

At the same time, Thailand footwear Limited by Share Ltd

By the end of last night, reporters had tried to contact Tsing Ya's investment shareholder, Lin Song Bo, but the phone failed to get through.

Profits are mainly from sole sales.

In the prospectus, Tai Ya shoes said that the profit of the company during the reporting period was mainly due to the main business profits generated by the sales of sports shoes sole, while other business income, investment income and extra business income had little impact on the company's profits.

Among them, the advantages of the company's R & D design are gradually reflected in the gross margin of the product, while the quality customer resources ensure the steady growth of the company's performance.

In addition, the scale advantage has better controlled the cost of raw materials. The company has strong bargaining power through the bulk purchase of raw materials, reducing the procurement cost of raw materials.

Prospectus shows that in recent years, the company has been Anta, XTEP, 361 degrees, Hongxing Erke, del Hui and other domestic well-known brand sports shoes enterprises as a development partner level supplier, it is the highest level of suppliers, each brand enterprise development partner level suppliers usually do not exceed 3.

The letter of intent indicates that the company's sales proportion to high quality customers, such as Anta and XTEP, is increasing year by year, product quality and price are gradually recognized by high quality customers. Under the company's cost plus management profit pricing model, although the prices of the main raw materials in the reporting period have risen greatly, they have little influence on the company's gross interest rate level, and the company gross interest rate is rising steadily during the reporting period.

High quality and stable customer resources provide a guarantee for the sustainable development of the company.

Raise funds for new projects

According to statistics, the company raised funds for the annual production of 20 million pairs of sports shoes sole project and technology center expansion project.

According to introducing, Tai Ya focuses on the development, production and sales of sports shoes soles, and the products are mainly supplied to the main domestic brand sports shoes enterprises represented by Quanzhou region.

The company is an advanced enterprise in Fujian province and a key enterprise in Quanzhou. It is the largest shoe sole enterprise in Quanzhou with the largest scale, the strongest design capability and the highest level of R & D technology. Now it is the sole sole supplier of Anta and XTEP, and is also the sole supplier of 361 degrees, Hongxing Erke and del Hui top five.

The letter of intent of the prospectus holds that the high quality soles enterprises rely on the close cooperation relationship with the large sports shoes brand enterprises, and make full use of their own research and development strength to continuously develop products that can meet the needs of the finished footwear enterprises, expand the profit margins and accelerate the development, so that they will gain a larger market share in the sole market, thereby gaining a higher growth rate than the average market growth rate.