Giordano Orders Fat And Fattened The Upstream "Family".

< p > 2013, the first new landing Stock Exchange on the Hong Kong stock exchange was officially launched (1.08, -0.06, -5.26%, real time quotes) (00540, HK) yesterday.

The opening price was HK $1.15, the highest price in the market reached HK $1.28, closing price was HK $1.14, which was 39% higher than that of HK $0.82.

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< p > it is worth noting that because the current domestic a href= "http://www.91se91.com/" target= "_blank" > clothing < /a > industry is generally in the industry cooling stage, many Hong Kong stock researchers in the interview with reporters only gave "neutral" evaluation, because "future performance volatility".

However, the market's enthusiasm for fast Global Holdings has not diminished. Fast global as an upstream manufacturer of clothing brands such as Giordano (00709) has been over subscribed 425 times in its offering.

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< p > a investment banker said, "although the 70% revenue of fast Global Holdings is from Giordano, the two sides signed a memorandum of cooperation of at least HK $500 million a year, which ensured the steady growth of fast global garment processing and production business."

In addition, Giordano is also one of the shareholders of fast global. Giordano has sent a big 5 year order to fast forward global market.

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< p > < strong > listed fundraising is "single flight" < /strong > < /p >.

< p > fast Global Holdings, which provides apparel supply chain, has issued 150 million new shares, of which 90% are international placement, 10% is public offering, and another 15% is over allotment.

The price is between 0.58~0.82 Hong Kong dollars, 4000 shares per hand, and the entrance fee is about 3313.06 yuan.

XinDa International Finance Co., Ltd. is the sole sponsor.

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< p > it is surprising that although many Hong Kong stock fellows did not strongly recommend fast Global Holdings, the market paid for it.

In January 14th, fast global announced the results of the offering. Hongkong's public offering received 10 thousand and 618 valid applications, totaling about 6 billion 391 million shares, equivalent to 425 times oversubscribed.

The international placement was heavily oversubscribed. After the call back, the allotment shares accounted for 50% of the total share offering, and no over allotment of shares would be exercised.

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< p > it is worth noting that the fast global holding prospectus shows that the company has two parts, namely, apparel supply chain service and clothing retail business, the former provides related clothing brand upstream procurement, production and other businesses.

This part of the business accounted for more than 90% of fast Global Holdings.

Among them, Giordano is the largest customer of the company. Financial data show that the company's total revenue from 2009 to 2011 accounted for 63.6%, 55.9%, 63.5% and 70.1% respectively.

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< p > in addition to the growing business dealings, there is another relationship between Giordano and fast Global Holdings. Giordano is also one of the shareholders of fast Global Holdings. The information shows that Giordano has become a shareholder of fast global holdings through holding obvioussuccess.

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< p > because more than 70% of the business sources come from Giordano, and over reliance on Giordano's fast Global Holdings, the purpose of IPO is to "solo".

As the prospectus raised about HK $97 million 800 thousand, of which 38% used for further expansion and strengthening of brand portfolio, and the establishment of UnisexLife multi brand retail stores; 26% used to expand the Unisex brand's retail network and improve sales; 13% used for brand promotion and marketing activities; 8.1% used to build different brands and set up online stores to sell Republic brand products; 14.9% used to further improve the IT system.

According to the information of fast Global Holdings, in 2011, the company's apparel retail business revenue was only 49 million 530 thousand yuan, accounting for only 4.2% of the business composition. The fund-raising was mainly aimed at expanding its retail business.

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< p > < strong > memorandum of cooperation memorandum order > /strong > /p >

< p > not only is it too dependent on Giordano's business, but the use of its fundraising funds is likely to form a competitive relationship with Giordano in the future. In addition to these two factors, fast Global Holdings itself is also in the doldrums.

Previously, the A apparel enterprises, which were strongly valued by the fund, Mei bang a href= "http://www.91se91.com/" target= "_blank" > dress < /a > (002269, SZ) and Semir dress (002563, SZ) were reduced by agencies because of overstock and terminal sales slowdown.

Semir apparel also made clear in its announcement that "the decline in performance is due to the slowdown in the macro-economy and slow growth in clothing demand, coupled with the rapid development of international clothing brands and new brands of domestic clothing, resulting in intensified market competition.

On the other hand, the increase in inventory prices and the rise of terminal channel costs and labor costs have also increased operating costs.

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< p > but surprisingly, under the influence of multiple negative factors, the market still showed strong enthusiasm for fast Global Holdings.

The investment bankers said that this is related to Giordano's purchase orders for at least HK $500 million a year to fast Global Holdings.

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"P > fast global holding prospectus clearly stated that" Giordano and fast Global Holdings "signed a memorandum of cooperation at the end of 2011, and Giordano made the best efforts to appoint fast Global Holdings as its manufacturer and supplier in the business. The total annual purchase amount is HK $500 million.

The memorandum will remain valid until December 31, 2016, unless it is terminated by written consent of the two parties, otherwise it will be automatically renewed. "

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It is worth noting that, according to Giordano's financial data from 2009 to 2011, Giordano's sales costs are HK $2 billion 58 million, HK $2 billion and HK $2 billion 331 million, respectively.

From 2009 to 2011, the total price of the order from Giordano was HK $528 million, HK $616 million and HK $741 million per year.

As Giordano's purchases increased, orders for fast Global Holdings also increased.

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< p > "fast Global Holdings itself is not a big bright spot, but at least 500 million yuan a year's large orders guarantee the steady growth of fast global in apparel supply chain service business."

The above investment bankers said, "at the same time, fast global has greater room for growth in clothing retail business."

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< p style= "MARGIN: 0cm 0cm 0pt" class= "MsoNormal" > span lang= "EN-US" > span "3".

< p > < strong > performance shows Giordano's "face" < /strong > /p >

In addition to the "P", with the close relationship between Giordano and fast Global Holdings, the cooperation between the two sides is not only an ordinary procurement and production relationship.

Because fast Global Holdings is an authorized supplier of Giordano, it can enter its purchase order information system. Fast global holdings can be informed of sales and inventory information in Giordano's sales business, and can accurately give priority to Giordano's recognition or identification of popular products, without prior consultation with Giordano and so on.

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"P," said fast Global Holdings. "During the past cooperation, we didn't get any losses because Giordano refused to accept our products."

The most direct beneficiary of the above way of supply is fast Global Holdings, the investment bankers said. "In this way, fast global holdings can guarantee direct delivery without pressure."

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< p > although "fattened" the upstream "family", Giordano has a lot of pressure on its own operation.

The semi annual report revealed by a href= "http://www.91se91.com/news/index_c.asp" > Giordano < /a > shows that although its overall sales growth has increased, the sales volume in mainland China has dropped by 4% to HK $918 million compared with the same period last year, but it has dropped by 6% compared with the same period last year.

Operating profit fell to HK $78 million, a year-on-year drop of 46.94%. It is the worst performing in the three largest areas of Giordano operation.

Meanwhile, in the third quarter, Giordano's sales also declined. In the third quarter, the sales volume of the company was HK $1 billion 270 million, a decrease of 5% compared with the same period last year. Gross profit was HK $733 million, a decrease of 4% compared with the same period last year, and the gross profit margin increased by 57.5% percentage points from 0.2 to 57.7% in the same period last year.

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Under this background, as of June 30, 2012, the total revenue of fast Global Holdings was 447 million yuan, down 9.5% from the same period last year.

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