XTEP'S Stock Price Goes Down All The Way On The First Day Of Listing.

Yesterday was the first day of XTEP international listed Hong Kong stock exchange, a well-known business in Quanzhou. Despite spokesperson Nicholas Tse's special debut, XTEP's debut was still poor. The stock closed at HK $3.79 yesterday, which shrank by 6.17% compared with its HK $4.05 issue price.

Nicholas Tse encouraged the stock price to go all the way. Although the issue price of HK $4.05 was the lowest limit of HK $5.5 to HK $4.05 for the XTEP international offering range, the stock market still fell below the issue price yesterday, opening at HK $3.79, after which it went down all the way, the lowest price was HK $3.40, and the closing price ended at HK $3.79.

In this regard, XTEP chairman Ding Shuibo said that because the performance of American stocks was not good, but he had confidence in the company's prospects; and for the question of whether the rising oil price caused the shoe industry's cost rise to affect the company's profits, He Ruibo, chief financial officer, said, "because the company is a brand dealer, it can pass 100 percent of the cost to consumers. Last year, the company increased the price by 10%, and this year it will increase the price by 10%".

Despite the poor performance of XTEP H shares on the first day, there are still good prospects for XTEP's industry.

JP Morgan's research report predicts that between 2008 and 2010, the annual compound growth rate of XTEP International's turnover and net profit is 42%.

Ding Shuibo was worth more than HK $5 billion a day, though he did not perform well on the first day of listing, but Ding Shuibo, chairman of XTEP, was worth more than HK $5 billion in a day.

Statistics show that Ding Shuibo holds 64.5% stake in XTEP international.

According to the calculation of 2 billion 200 million shares of the enlarged total share capital, Ding Shuibo holds 1 billion 419 million shares of XTEP international stock, which is valued at HK $5 billion 378 million at the closing price of HK $3.79 yesterday.

The Carlyle fund, which has increased its value, invested the first capital in Fujian in July last year to XTEP international. At that time, it invested in XTEP in the form of convertible loan agreement, with an investment amount of 30 million US dollars and a 9.6% stake in XTEP.

According to reports, after the completion of the IPO, Carlyle's two investment funds will hold XTEP international 6.9% and 0.3% shares respectively. These shares have half a year's ban period, according to yesterday's closing price, this part of the stock value has exceeded 600 million Hong Kong dollars, the appreciation is nearly two times.

XTEP international has issued a total of 550 million new shares, issuing new shares account for 25% of the expanded share capital, priced at HK $4.05 per share, and total aggregate capital of HK $2 billion 230 million.

For the HK $2 billion 230 million raised in the listing, XTEP said it intends to invest 24% of the total fund-raising amount, that is, HK $530 million, to invest in the acquisition of brand and new projects. The other 22% HK $500 million is used for media advertising and brand promotion activities.

As for the brand that is worth buying at the expense of about HK $530 million, Ding Shui Bo revealed yesterday, "the target is international sports brand, but it needs positioning for Chinese market and XTEP, and is engaged in clothing or footwear business."

"XTEP relies on throwing money to invite celebrities, to turn an obscure small business into a star enterprise."

A person familiar with XTEP analysis, from the use of fund-raising funds, it is obvious that XTEP intends to continue to smash money to make a "big card".

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