Thailand Shoe Industry Replenish Funds To Accelerate Outdoor Brand RAX Construction

Thailand

The use of part of the idle funds to temporarily replenish liquidity is expected to save financial costs 560 thousand yuan (according to the half yearly loan interest rate and half year time deposit rate), the company will return its own funds to the company's special account to raise funds, and will not change the purpose of raising funds in disguise.

The fund was originally planned for two major projects.

Thailand shares were listed on the Shenzhen Stock Exchange in December 7, 2010.

In the first three quarters of 2011, its operating income was 298 million yuan, an increase of 18.06% over the same period last year; gross profit margin was 22.27%, down 0.86 percentage points compared to the same period last year; the sales cost rate was 0.72%, up 0.04 percentage points compared to the same period last year; the management fee rate was 6.93%, down by 0.13 percentage points year-on-year; the net profit attributable to the parent company was 34 million 60 thousand and 300 yuan, an increase of 23.01% over the same period; and the basic earnings per share were RMB 34 million 60 thousand and 300 yuan.

According to the previous announcement, Thailand shares initial public offering plan to raise funds for the RMB 150 million 249 thousand and 800 yuan, plans to invest two projects.

First, the annual output of 20 million pairs of sports shoes sole project, the planned investment amount is 131 million 699 thousand and 800 yuan, the replacement stage has invested 4 million 896 thousand yuan, until the end of 2011 did not invest in the new year, it is estimated that by the first half of 2012, 50 million yuan will be needed.

Another project is the extension project of the technology center. The planned investment amount is 18 million 550 thousand yuan, which has not been invested in the early stage of replacement. It will invest 479 thousand and 800 yuan by the end of 2011. It is estimated that 9 million yuan will be needed in the first half of 2012.

In fact, the total amount of initial public offering raised was 442 million yuan, with a net issuance cost of 33 million 749 thousand and 800 yuan, and the net amount actually raised was RMB 408 million 250 thousand and 200 yuan, and the excess raised fund was RMB 258 million and 400 yuan.

These funds have been used for the following purposes: the use of over raised funds of 118 million yuan to repay bank loans and the use of over raised funds of 40 million yuan in permanent supplementary liquidity; in 2011, the remaining surplus funds were invested for 100 million and 400 yuan in Anta Industrial Park "20 million pairs of sports shoes sole items".

As of December 31, 2011, the Anqing Industrial Park's annual output of 20 million pairs of sports shoes sole project (over raised) has been invested 10 million 629 thousand and 400 yuan, and it is estimated that 90 million yuan will be needed in the first half of 2012.

But recently, due to tight liquidity, the company intends to raise the investment project "20 million pairs of sports shoes sole production project" part of the idle collection fund of RMB 40 million yuan temporarily used to supplement liquidity.

Replenishing funds to accelerate the brand of outdoor shoes

This time supplementary liquidity, Tai Ya shares is given the reason: "in order to fully enhance the efficiency of the company's capital use, reduce financial costs, and because of the company's investment in outdoor sports brand projects," one of the year's 20 million pairs of sports shoes sole project "construction projects due to the replacement of new land pfer funds, resulting in insufficient liquidity.

In fact, the most important thing should be the high-profile new action since last year - "investing in outdoor sports brand projects".

As a leading manufacturer of sports soles in China, the sole sole product company is a cooperative group of well-known shoe brands in Jinjiang. Its annual solo products have more than 100 kinds of styles, and have many patents and non patented technologies.

In July of 2011, it invested 30 million yuan to set up a wholly owned subsidiary, Xiamen Rui hang Agel Ecommerce Ltd, to create the outdoor sports brand "RAX". The company successfully produced its own brand shoes products by using the company's sole production of shoe sole and the whole shoe outsourcing professional processing mode, and put it into the market through the network channel.

In December 1, 2011, the network sale of the independent outdoor sports brand "RAX" was launched.

In terms of market positioning, Thailand shares avoid the "casual shoes" market that is saturated with the market and the competitive market, and the "professional outdoor shoes" with low consumption frequency. RAX is positioned as a "leisure outdoor" product.

It locks the 18-45 year old well-off family who loves leisure travel, and takes the urban white-collar, fashion youth and college students who like leisure and outdoor sports as the core group.

According to the previous feasibility report, the total pre investment of the brand is estimated at 46 million 498 thousand and 800 yuan, including 6 million 380 thousand yuan of hardware and software facilities and 40 million 118 thousand and 800 yuan of circulating capital.

The investment funds come from Thailand shares, which will set up a wholly owned subsidiary in the form of capital investment in the form of 30 million yuan of liquid capital.

With the gradual expansion of the scale of operation, the replenish of the subsequent floating capital was raised by the subsidiary itself.

Thailand shoes industry said that its subsidiaries Xiamen Rui hang Agel Ecommerce Ltd set up an integrated outdoor sports products research and development, production and sales. It will play the advantages of Thailand's stock industry advantages, resource advantages, product technology advantages, capital and cost advantages, and take the modern network platform and the call center as the core of service, with experience shops to let customers feel and try on, outdoor sports shoes as the main products, and other outdoor products with different categories in line with the overall brand line, so as to build a comprehensive outdoor brand with the most potential market potential.

All products are sold through the Internet. On the one hand, considering the rapid growth of the domestic outdoor merchandise online shopping market, the market space will be huge in the future. On the other hand, online sales can save many problems such as location selection, decoration, personnel management, inventory turnover and so on, which will greatly reduce the cost of sales and reduce the risk of investment.

Thailand shoes also pointed out that the company as a first-line sole production and R & D enterprises, in order to maintain a leading position, in addition to brand building efforts to increase value-added, product technology, quality and other aspects are also striving to improve.

Only by focusing on industrial upgrading and R & D design innovation can we maintain strong competitiveness in the market.

The implementation of the project will help further improve the company's profitability and level, and achieve sustainable development of the company.

According to the company's prediction, after the implementation of the project, it is estimated that the sales revenue will reach 269 million yuan in fifth years, and the total profit will be 43 million 570 thousand yuan, with a net profit of 32 million 670 thousand yuan and a sales net interest rate of 12.14%.

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Securities firms are optimistic about their online sales model.

It can be found that Tai Ya shares, relying on its own industrial advantages, has chosen outdoor shoes as an industry area that can not only give full play to its own advantages, but also has great potential for development.

China's outdoor consumption started after 2000, and saw an explosion after 2005.

According to the statistics of the outdoor products branch (COCA) of the China Textile Business Association (TFA): in the 2000-2009 years, the annual compound growth of the total retail sales and shipments of the outdoor products market in China increased by 47.5% and 48.4% respectively, and the total retail sales reached 4 billion 850 million yuan in 2009.

In 2009, there were 473 outdoor brands in the domestic market, an increase of 13.98% compared with 2008, including 187 domestic brands, 23.84% growth and 286 foreign brands, an increase of 8.33%.

The total number of brands keeps rising.

In addition, from the point of view of product sales structure, product concentration is higher, clothing products account for the largest proportion of sales, followed by footwear, and then knapsack. Sales of these three products account for more than 85% of the annual sales of the whole industry.

A practical situation is that in recent years, more and more people have begun to attach importance to sports, sports and other physical and mental health activities such as returning to nature tourism. They seek leisure and individualization, and pursue physical fitness and entertainment.

Judging by the relatively low consumption scale of China's outdoor products, the further improvement of residents' income and the continuous progress of urbanization will undoubtedly promote the growth of China's outdoor consumption, and it is expected to maintain the trend of growth in the next 3-5 years.

However, compared with other industries, the outdoor sports market has not yet had an absolutely strong leading brand. Even the listed companies such as Pathfinder have relatively limited market share and are mainly concentrated in the offline market.

Based on online and offline channel conflicts, on the e-commerce platform, outdoor brands mainly sell inventory on the Internet, which creates opportunities for new brands.

In this regard, Li Xin and Ju Xing Hai, an analyst at CITIC Securities, pointed out that it is a preliminary attempt for the company to pform itself from the manufacturer to the retailer through the production of sole shoes, the export of shoes to other enterprises, and the sale through e-commerce channels. The prospect can be expected, but there are many uncertainties. The short-term contribution to performance is limited, and the driving force for growth in the next 2-3 years still comes from the production business.

The pformation of manufacturing enterprises to brand retailing requires breakthroughs in brand, design, channel and supply chain management. The most difficult part is the retail operation under the channel development and shop management. The online operation mode just avoids the short board with insufficient retail experience.

At the same time, most of the top ranking outdoor brand enterprises are dominated by offline retail channels. When developing online businesses, they will be restricted by the conflict between online and offline sales systems. This will also leave room for the brand development of the company.

Since 2011, the company's capacity utilization has been maintained at over 90%.

The core customers' performance in the 4 quarter of 2011 was strong, and the increase in the number of footwear orders was mostly in double digits. The adjustment and sales fluctuation of some sports brands had little effect on the actual production of the company.

Under the premise of better demand, the growth of the company's performance is mainly driven by the steady release of new capacity.

Maintain 2011/2012/2013 EPS forecast 0.62/0.91/1.23 yuan, maintain "hold" rating.

Huatai joint securities Cheng Yuan pointed out that the company's annual revenue growth in 2011 is expected to be around 20%.

The company's revenue in the third quarter of 2011 increased by 36.64% compared with the same period last year. On the one hand, the price of raw materials increased and the selling price of products increased correspondingly. On the other hand, the sale of some PU shoe sole production lines in Jinjiang in the first half of 2011 to increase the price of PH shoes was increased.

Due to capacity constraints, the company's revenue growth is mainly dependent on price increases and product mix adjustment.

The company's brand outdoor shoes project has been progressed as scheduled, because this is the first time that the company has tried to brand operation, so it takes a less risky network operation mode as an attempt to open up new profit growth points in the future.