Jinjiang Department Of Sports Shoes Surging Market Tide

At present, 3 enterprises in Jinjiang have entered the counselling period, 10 have signed contracts with the securities companies, and 19 have launched the "solid listing" sports shoes, 200 yuan or more of the sports shoes. China currently has 0.25 pairs per capita. By 2010, it will be promoted to 0.5 pairs.

Twice as much.

Therefore, the sporting goods manufacturing industry is destined to be a sunrise industry pursued by capital.

Zhang Tao, vice president of Anta, told the first financial daily.

With the approaching of the Beijing Olympic Games, the sporting goods manufacturing industry has become the focus of attention again.

Following the successful launch of Anta (02020.HK) in Hongkong in 2007, second Fujian Jinjiang sporting goods company XTEP International (01368.HK) will also be listed on the HKEx today.

In addition, Jinjiang sports brand PEAK, Jordan sports, 361, Conway and so on all entered the countdown to the market.

The upsurge of listing is attacking the "Jinjiang Department".

Jinjiang is listed as the third national sports industry base after Jinjiang and Shenzhen.

Now the sports industry contributes to 18% of Jinjiang's GDP.

Jinjiang has 37 brands of state-level sports industry.

Anta, XTEP, Hongxing Erke, 361, HOSA, del Hui and other well-known enterprises are from here.

In 2007, "Jinjiang Department" Anta sports was successfully listed in Hongkong, and the public offering was partially oversubscribed by 183 times.

Financing amounted to HK $3 billion 168 million, creating the largest scale of mainland China sports brand's overseas capital market.

Under the action of Anta's listing, XTEP, which is positioned in stylish sports, is expected to raise about HK $2 billion 67 million (before exercising any excess allotment rights) after deducting underwriting Commission and estimated sales expenses.

According to XTEP's prospectus, the total number of new shares is 550 million new shares, of which 495 million shares (90%) are allotment, and 55 million shares (10%) are open for sale.

The offering XTEP will be priced at HK $4.05 per share, which is the lower limit of HK $4.05 to HK $5.5.

The sponsors are JP Morgan and UBS.

From Anta to XTEP, Jinjiang phenomenon is becoming more and more intense in capital market.

The reporter learned from the listing Office of Jinjiang that since last year, Jinjiang has launched 3 resource discovery work on the market, and the government has guided enterprises to dock with many investors.

As of the beginning of this year, there were 3 enterprises entering the tutorial period in the reserve force of Listed Companies in Jinjiang, 10 of which had signed contracts with securities companies, and 19 had started the real listing but did not sign contracts with the securities companies.

Many enterprises such as del Hui, PEAK and 361?

According to statistics, not to be listed on the XTEP, the "Jinjiang Department", the total amount of domestic and foreign financing in the total amount of about 11000000000 yuan, set up the capital market noticeable "Jinjiang plate."

As for Jinjiang sports brands, Zhang Tao believes: "the Chinese market is a focus market. The competition is positive. Sports manufacturing is a sunrise industry. It is an important opportunity for Chinese sports brands to seize capital and be concerned by capital."

Optimistic about the Olympic market, with the pace of the 2008 Olympic Games approaching, the marketing campaign of domestic major sports brands also quietly started.

The report shows that in 2008, China's sporting goods market will reach US $6 billion 200 million and 2009 will reach US $7 billion 200 million.

The average annual compound growth rate of sports enterprises is between 40% and 50%.

It is reported that in order to prepare for the Olympic Games, the "Jinjiang Department" enterprises are quietly carrying out the layout and expansion.

In May 16th, Anta sold its Shanghai frontline sporting goods Development Co., Ltd. (hereinafter referred to as "Shanghai frontline") for 187 million yuan to Jiangsu Hesheng investment guarantee Development Co., Ltd.

This means that Anta has completely ended Adidas, Reebok and Kappa's three international brand retail business and has developed its own brand.

It is reported that Anta will give HK $614 million to buy new domestic or international brands, expand product lines, and open up new fields such as children's shoes.

During the Olympic Games, Anta will also produce about 3.6 billion for brand promotion.

Contrary to Anta, XTEP has expanded its cooperation with international brands. In addition to its own brand "XTEP" and "Colin", XTEP has signed a 6 year concession agreement with the US Disney, and has sold more than 200 brands of Disney sports series in China.

According to the prospectus, XTEP will invest part of the proceeds from the listing to capacity expansion, and will build a large garment factory. The XTEP garment production line will be expanded from 12 to 120, and the production capacity will be expanded from 1 million to 10 million.

"The goal is to acquire outdoor sports brands, children's shoes and so on, whether it's international or local brands."

XTEP international sources said, "XTEP's investment in Olympic marketing this year will not be less than 200 million yuan."

The annual reports of Anta and XTEP show that Anta's turnover in 2007 was 3 billion 182 million 400 thousand yuan, an increase of more than 1.5 times compared with that of last year, and net profit increased by 2.6 times to 537 million 800 thousand yuan.

XTEP's turnover in 2007 was 1 billion 364 million 900 thousand yuan, a compound annual growth rate of 114.2%.

"During the Olympic Games, 1 billion 300 million Chinese will receive a spirit of sports baptism, the spirit of sports will be more popular among the people."

Zhang Tao believes that after the end of the Olympic Games, the development of the sporting goods market will face an inflection point, "not from fast to slow, but from faster to faster."