China'S Trend Is Gorgeous. Chen Yihong Is Popular In China.

A few days ago, the 3818.HK of China listed on the Hongkong stock exchange closed at HK $5.43 on the first day.

According to this calculation, China's total market capitalization reached 29 billion 870 million yuan, far exceeding that of Lining and Anta, which were listed in Hong Kong earlier.

Chen Yihong's personal worth of 53.32% stake reached 15 billion 900 million yuan, which surpassed Lining, who was his old club (10 billion yuan).

Overnight, the trend of China and its leaders completed a magnificent turn.

Lining, the founder of the Chinese market, is still thinking about the past. The current executives in China are still in the Li Ning Co.

The trend of Beijing, the predecessor of China, is only a subsidiary of Li Ning Co in 2002.

In 2004, Chen Yihong, executive director of Li Ning Co, bought 20% interest in Beijing.

In 2005, Lining carried out strategic restructuring to focus on the development of the "Lining" brand. Beijing's trend became an overnight outcast overnight, and Chen Yihong bought the remaining 80% interest in Beijing.

In 2006, after Morgan and Stanley helped to acquire all the rights and interests of Italy brand Kappa in mainland China and Macao, China's trend has changed from Kappa brand franchisee to owner. The company can develop its own brand strategy in mainland China and Macao.

At present, the Kappa brand has entered the top three brands of the international sports brand, the Chinese market, and the top five sporting goods market in the mainland.

China's trend is that how to choose the right way of publicity, reflect the brand's image and sports concept is the key to winning.

It adopts the differentiation strategy of "sports entertainment, entertainment and sports", making use of its rich entertainment star resources to carry out various forms of cooperation with them to move people's hearts.

Not only that, the Chinese trend is also bold in trying to sponsor emerging sports, such as sponsoring China's 49 member National Sailing Team.

Besides, China is also very good at "leveraging". It is widely connected with other industry brands such as PepsiCo and Citroen to form a strategic alliance with low input to achieve the largest brand promotion effect.

Relying on these strategies, China's trend has successfully established the unique sports fashion brand image of Kappa products in the Chinese market in a short time.

In the same way that venture capital has boosted venture capital in gambling capital with Mengniu and Focus Media in recent years, the private equity investment fund (PrivateEquityFund, hereinafter referred to as PE) has emerged behind China's trend.

This is Morgan Stanley.

However, slightly different from other enterprises, Morgan Stanley did not appear as an underwriter, but appeared as the second largest shareholder.

The media once broke the news that before the listing of China's stock market, Morgan and Stanley had a stake in gambling.

The report said that China's move is in agreement with Morgan and Stanley. If the company fails to meet its target next year, its main shareholders will pfer up to 20% of the issued share capital to Morgan and Stanley.

If China moves next year, its profit will be 15% lower than its target. The 17.6% stake of major shareholders will be pferred to Morgan Stanley.

Conversely, if the company's earnings exceed $55 million 900 thousand during the period, Morgan Stanley will pfer 1% of the issued share capital to major shareholders.

China's unique business model and huge growth potential are the main reasons for attracting Morgan and Stanley.

And China's move to bet on equity in this way also shows that it has enough confidence in its own future profitability, and also has high hopes for the management team.

In 2006, China's profit in the Chinese market was as high as 300 million yuan. According to the compound growth rate of the company's profit of more than 35% in recent years, relying on the huge business opportunities of Beijing 2008 Olympic Games, it is sure that the profit index will be over fulfilled in the next few years.

In the early days of the listing of the crystal shoes, the Chinese trend succeeded in holding Yintai department store as a base investment partner.

China's partners and competitors are aware that inbound department stores have directly owned their own marketing channel.

In the fierce market competition that generally believes in "channel is king", the advantages of China's big channel are fully displayed.

China Life and Tiger Fund have also become the cornerstone investors of China in the same period. The Chinese trend is even the first time that China life has subscribed to the department stores in Hongkong, while the mainland wealthy woman, Zhang Yin, chairman of the Nine Dragons Paper, has also been placed in the international placement.

In this way, a win-win chain of interests is formed.

How can China attract such a heavyweight investor? China's trend chairman Chen Yihong's answer is quite real: "because the company's profitability is too strong."

China's net profit in 2006 increased by 200% compared with 2005, and its performance in 2007 has increased by more than 90% over the same period last year.

According to the prospectus, the forecast net profit of the company in 2007 is HK $633 million, with a forecast of HK $0.11 per share (not exceeding the allotment rights and the exercise of the relevant options).

Qin Dazhong, chief executive officer and executive director of the company, also revealed that the gross margin of the company remained at 58%~60% level, and net profit margin remained at 33%~35%.

The most important thing is that China will also use the 53% of this fund to develop its existing brand and expand its brand portfolio.

The company plans to expand the product line of Kappa brand, and purchase one or more brands in China's ownership or management rights, and manage new acquisition varieties.

This series of initiatives, together with the development prospects of the industry in China and the concept of Olympic Games, started a gorgeous turn.