How Can The Brand Of "Olympic Listing Tide" Meet The Difficulties Of Private Enterprises?

In the past 2007, the temptation of the capital market spread in China's sporting goods industry, especially the successful listing of Anta and China by two private sports companies, making other sporting goods enterprises more coveted and more confident in the capital market.

But at the same time, when these private sports brand collectively seek listing, the risk also comes.

China's stock market continued to decline for several months. In April 23rd, the Shanghai stock market was down 3000 points, down more than 50% from the 6124 highest point in history.

At the same time, the international stock market is also affected by the US subprime mortgage crisis.

Is it wise to choose to go public at this time?

The vast majority of private sports brand enterprises are uncertain.

The successful effect of Anta and KAPPA is that the earliest sports brand in China is Lining, the industry leader. As early as June 2004, Lining (2331.HK) was successfully listed on the stock exchange of Hongkong, and the amount of money raised by Lining was up to HK $440 million.

But Lining's listing didn't cause much impact in China. After a few years, other private sports brand enterprises still focused on the expansion of production scale and the expansion of sales channels until the listing of Anta in July 2007.

Anta, as a famous sports brand in China, began to prepare for the listing consciously or unconsciously from the beginning of the company registration in 1994.

In July 10, 2007, Anta sports (2020.HK) closed on the first day of the Hongkong stock exchange at HK $7.50, a rise of more than 40% compared with the issuing price of HK $5.28.

Anta raised HK $3 billion 168 million in the main board market of Hongkong, setting the highest record of Chinese local sports brands raising money in overseas capital market. Compared with the fundraising amount of Lining listed in 2004, Anta's scale of raising funds is 7 times that of Lining.

HK $about 3000000000, the number of Anta IPO surprised other competitors, especially the sports shoes enterprises in Jinjiang, Fujian, and the strength of capital market began to emerge.

In fact, in terms of listing, Hongxing Erke takes the lead.

In November 14, 2005, Hongxing Erke registered a new company in Bermuda. After six months, it was listed on Singapore's main board with a close to 7 times price earnings ratio, raising about 200 million yuan.

But the industry estimates that the financing is "not ideal", so the impact is not big.

The aftermath of Anta's listing is not yet smooth. Three months later, in October 10th, China's famous sports brand Kappa's exclusive distribution rights in mainland China and Macao (3818.HK) were officially listed on the main board of the stock exchange of Hongkong.

On the first day of listing, China's trend (3818.HK) has a total turnover of about 694 million 500 thousand shares on the first day, with a turnover of about HK $3 billion 478 million.

On that day, China's market value reached HK $29 billion 800 million, more than Lining's HK $26 billion, and it took the lead in China's sports apparel.

Another group follow suit. At present, China's private sports enterprises are mainly concentrated in Quanzhou, especially in Jinjiang. Jinjiang has become the largest production base of sports shoes and an important production base for world sports shoes.

Now there are more than 3000 shoemaking enterprises in Jinjiang, with an annual output of 1 billion pairs, and 60% of the products enter the international market.

Jinjiang's sporting goods enterprises began to gather around 2000. A large number of enterprises have maintained a consistent pace in celebrity endorsement, diversified product development, sponsorship of sports events, operation of franchised stores and construction of industrial parks.

A sharp example is in advertising, according to incomplete statistics, over 40 Jinjiang sports shoes brand has been commercials on CCTV sports channel, sponsored sports events cover all kinds of sports.

For example, XTEP, Xi De Long and Jordan (China) appeared in the prime time advertisement of CCTV Olympic Channel in 2008.

After seeing the success of Anta and China's listing, Anta and Anta, such as XTEP, Jordan, PEAK, Xi long, and other Jinjiang footwear enterprises, are the first domestic sporting goods companies listed on the Hongkong stock exchange. They are ready to list in the past one or two years.

If enterprises want to go public, Jinjiang has also set up special funds to support enterprises' restructuring and listing. The company can get financial subsidies to a few million by listing, and provide comprehensive guidance and support to enterprises in terms of listing qualification, steps, risk assessment and economic research.

According to the plan of Jinjiang, by 2010, the number of listed enterprises in Jinjiang will reach 20. At present, there are less than 10 listed companies in Jinjiang.

This means that nearly 10 listed companies will be added to Jinjiang in the next two years, and a large part of the newly listed companies will be sports shoes enterprises.

Relevant officials in Fujian province said that the "Jinjiang breakthrough" would be implemented from Jinjiang to form the "Fujian plate" of private enterprises in the securities market.

It can be seen that the sports shoes enterprises in Jinjiang will soon become a hot spot in the capital market.

Chen Tai town is a common town in Jinjiang, but the town alone brings together famous Chinese sports shoes such as Anta, 361 degrees, del Hui, Jordan and so on, and the "Jinjiang section" of a stock market will soon be produced in Chen Dai town.

Anta, the first to be listed, is undoubtedly the focus of attention from all circles. According to the first annual report released by Anta recently, Anta's profit growth is more than 2.6 times, which is nearly 4 higher than that of the prospectus.

XTEP and Jordan (China) have entered the waiting period of listing. XTEP has appointed JP Morgan and UBS as sponsors to be listed on the Hongkong stock exchange. The estimated amount of financing will not be less than $300 million.

XTEP's determination to go public is obvious. Among the sports shoes enterprises in Jinjiang, only XTEP wins the bid in the CCTV Beijing Olympic Games series advertising, with a total value of more than 100 million yuan.

If the listing is successful, XTEP will become the third mainland Brand Company moving to Hong Kong after Lining and Anta.

For Jordan (China) Limited, listing is only a matter of time.

At the end of the 2008/09 autumn and winter China International Fashion Week, although Jordan (China) did not announce its listing plan, it is widely believed that it will become the first sportswear brand to be listed on A shares in China.

Jinjiang's famous sports brands, such as Xi De long, del Hui, 361 degrees, and gold lake, have different listing sites, but they have listed the listing plan in the past two years.

If the plan of the brand is to be completed in 2009, the goal of financing is to expand the scale of enterprises, and two to acquire other second-class brands.

Listing is a double-edged sword. In the past 2007, China's stock market had a sharp shock. If an enterprise wants to go public, it will inevitably face a difficult problem. Is it to deepen the development of the industry or to diversify?

After listing, a large amount of capital will become an important guarantee for the future development of enterprises. It is generally believed that the most important role of listed companies is to standardize their management, and also build a competitive platform for enterprises to enhance their credibility.

At the same time, the temptation of listing is also very large. A simple example is that the normal sale product generates 100 yuan profit is 100 yuan.

But after listing, the 100 yuan will soon become 200 yuan, or even 2000 yuan.

Next, how to use this part of the stock market to generate more funds will become very subtle.

At present, the purpose of listing and financing of shoe enterprises is more focused on diversified development, including equity investment, which is likely to become a potential safety hazard for the industry.

The impact of massive capital entry in sports products is that it can boost the rapid development of a large number of brands with large growth potential in China, cultivate a number of internationally competitive brands in China, and help brands with superior resources to complete the upgrading of their own industries through the strength of capital market.

Take Anta as an example. In the initial prospectus of Anta, it is clear that 250 million of the HK $3 billion 100 million of fund-raising is used to expand the scale of production, while most of the remaining funds are used for brand promotion and expansion of marketing network.

Facts have proved that relying on the help of the stock market, Anta's sales channels have expanded rapidly, and the brand reputation has also greatly improved.

It shows that 250 million of the HK $3 billion 100 million of the fund-raising is used to expand the scale of production, while most of the remaining funds are used for brand promotion and expansion of the marketing network.

Facts have proved that relying on the help of the stock market, Anta's sales channels have expanded rapidly, and the brand reputation has also greatly improved.

In the past several listed sports brand enterprises, the non mainland market is the preferred place for their listing. In 2008, many enterprises in Fujian, especially in Jinjiang, "collective listing" still chose the location of listing abroad.

Hongkong is the first choice for these enterprises. This is because Jinjiang shoe companies are mostly red chip companies, so they are more likely to be listed in Hongkong.

Fujian provincial development and Reform Commission officials recently said that although some enterprises are entering the listing process, they have not yet received the declaration materials from the enterprises.

At present, Anta's listing in Hongkong has been a great success.

According to Anta chief operating officer Lai Shi Hsien, Anta has received orders for the first three quarters of this year, an increase of 50% over last year, and expects the gross margin level to further increase from about 33% to 38%.

In the plan of Anta this year, capital expenditure will increase to 368 million yuan from last year's 264 million yuan, which is mainly used for opening stores and building operation centers.

The unlimited development opportunities brought by the capital market are revealed on Anta.

Besides, listing in Singapore can also be a good choice, especially the gem has strong attraction for many small and medium-sized enterprises.

It is a sports brand that is unknown in China. China Sports International, a China Sports International Company Limited, has been listed in Singapore for a week after the listing of Anta, with the first phase of IPO1 billion new shares.

A small sports shoe business in Quanzhou, which is not well-known in the local market, is listed in Singapore. This makes more and more small and medium shoe enterprises in Fujian pay more attention to the process of listing of gem.

After the wild market was launched, at the end of last year, it took the Slovenia Olympic Committee to become another Quanzhou brand that took the International Olympic Committee's train.

In addition, many private sports enterprises have explored new locations overseas. It is understood that overseas markets such as the United States, Germany and even Korea are within their choice.

The sports shares under the break of the puzzle are widely believed that with the approaching of the 2008 Olympic Games, the domestic sports apparel brands will usher in a rare business opportunity, and the concept of "Olympic Sports" will become a driving force for the listing of sporting goods companies.

At present, the domestic sporting goods industry is growing rapidly and its market share is increasing.

According to pre sharp (Shanghai) Business Consulting Co., Ltd., the size of China's sports apparel market will reach 46 billion yuan in 2008, with a compound annual growth rate of 22.6%.

At present, sales of Nike, ADI, Lining, Anta, Reebok five brands account for about 40% of China's sports apparel market.

For the domestic sporting goods listed companies or the companies that are going to be listed, can the theme advantage be reflected in the overall environment of the stock market?

In April 18, 2008, a day that should be remembered in the history of domestic securities, PetroChina (601857) at 10:10 16.69 yuan finally fell for the first time below the issue price.

If you put it on your neck 160 days ago, no one will believe that CNPC will break.

However, in just four months, PetroChina fell to a 16.70 yuan issue price, which has set a new record in the Chinese stock market.

The breakup of CNPC reflects the instability of the entire domestic stock market. Since the sharp fall of the index, dozens of shares in the two cities have gone through the issuance price.

If the trend of this kind of stock falls below the price of the additional price, it will continue to continue. The confidence that the agency will participate in the issuance will inevitably be severely compromised, and the financing of the listed companies will also be faced with a severe test in the future.

Despite the introduction of continuous favorable policies at the end of 4, especially in April 23rd, when the stamp duty rate on Securities (stock) pactions was adjusted from 1/1000 to 1/1000, A shares immediately rose, and Shanghai index also created a new high in the past seven years in April 24th, but the confidence of the whole market is still insufficient.

In addition, due to the impact of the subprime mortgage crisis in the United States, the US stock market and the global stock market have generally declined. If there is a lot of overseas listing at this time, the listing of sports stocks should also be considered before proceeding.