The Listing Of Gem Is Another New Start For Breaking Up The Silk Market.

As an Internet brand, what kind of road will the design style be strong and unique and separate after listing? What changes will the listing bring to this frenzied growth brand like wild weeds? What kind of mystery can be seen from hundreds of pages of prospectus?

Reporter: what is the plan of the IPO plan?

Tang Feng Feng: the number of IPO to be issued and sold is no more than 41 million shares, accounting for 25% of the total share capital issued and issued, and the total share capital after issuance is not more than 164 million shares.

Reporter: can you tell us about the shareholding structure of the company?

Tang Feng Feng: at present, there are 4 natural shareholders and 5 institutional shareholders. Among them, 4 are natural shareholders, namely, the 4 founders of the company are Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng. They are also the controlling shareholders and common actual controllers of the company.

Among the 5 institutional shareholders, Tianjin Xin Wu Cracking Technology Co., Ltd., Tianjin Xin Wu Technology Co., Ltd. and Tianjin Angel City Technology Co., Ltd. are three shareholding platforms established for the implementation of employee equity incentive plan, and the remaining 2 are venture capital funds Matrix Partners China II Hong Kong Limited (Jingwei Hongkong) and SCC Venture 2010 (HK) Limited (Sequoia Hongkong), shareholder structure is more reasonable.

Reporter: Cracking the silk

Tang Feng Feng: Cracking the silk and raising funds for this issue will be applied to five aspects.

First, R & D center design;

Second, sub brand building;

Third, offline brand channel construction;

Fourth, update and upgrade the information system;

Fifth, replenish the main business liquidity.

These are both our fundraising purposes and our future development strategy.

In addition, we will continue to invest or acquire brands that have specific characteristics, no matter how small you are, no matter when they are listed or queued up now.

Reporter: Tmall online started the layout, led the Amoy brand to open shop offline, what is the attitude towards this policy? What kind of layout will there be under the Internet?

Tang Feng: part of the fund-raising financing of the listed companies is for offline expansion.

The company plans to invest 70 million yuan to open 15 offline stores in two years.

Among them, in Beijing, Shanghai and Hangzhou, the core business circle set up 3 flagship stores with 1000 square meters, offering 12 outlets of 80-120 square meters in the core business circle of the first tier cities and the second tier cities with strong consumption.

Since 2011, Internet brands have tried to try offline stores.

After 5 years of exploration, we have gradually found some patterns.

Online and offline consumers' shopping paths are different, resulting in a low degree of coincidence. There is still a large market for online brands to be developed.

China's online shopping construction over the past decade has basically broken into the online brand.

Because there is a certain threshold for the offline channels, it also needs a certain amount of funds, and in the advanced management level of the world, there has also been a new model. From the former agent to the direct battalion and the semi direct battalion mode, it takes a certain time to precipitate.

At the same time, the offline commercial complex is also undergoing changes, and all new brands will emerge and develop in the process of change.

At the right time, the offline complex needs the flow of online brands, needs the crowd, and needs the contributions of young groups, not just the international luxury layer of the dining room and the first floor.

Offline comprehensive experience reduces the deduction point; Internet brand will bring young group, cost-effective products, every week, new and even every day on the new good experience, O2O convenient and quick, as well as the high viscosity of customer interaction.

Each win is the future.

Reporter: how do we see the form of attracting new traffic such as net red and live broadcast? Will we find the link between these new formats and our businesses? What are the specific plans?

Tang Feng Feng: net red, live broadcast and other new forms of attracting traffic are the inevitable trend of personalized development.

Of course, we must use this new way.

Enterprises are basically products, while net red and live broadcast are a way of brand communication and operation.

Just like newspapers, magazines, advertisements, CCTV advertising and celebrity endorsements.

Apart from the new drainage mode, the combination of cracking and silking and its brand is also exploring some new ways of business and cooperation.

As of the date of signing the prospectus, Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng respectively hold 13.96% of the company's shares directly.

In addition, Tang Xianfeng holds 61.86% of Tianjin's heart and material and silk and silks, and Tianjin shares 9.61% of the company's shares. Tang Xiao Feng holds 71.07% of Tianjin's heart goods, and Tianjin owns 7.13% of the company's holdings. Zeng Hua Yong owns 94.60% of Tianjin's Angel City, and Tianjin's angel city owns 4.89% of the company's shareholding.

Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng jointly hold 77.48% of the direct holding and indirect control of the company; Jingwei owns 13.51% of the Hongkong holding company, and Sequoia Hongkong owns 9.01% of the company's shareholding.

Reporter: can you introduce me?

Tang Feng Feng: since 2014, the traditional clothing brands under the traditional lines and international well-known clothing brands (such as UNIQLO, ZARA, etc.) have entered the major domestic e-commerce platforms, and have continuously increased the sales strength of online channels. Meanwhile, the new brands of online clothing have increased significantly, and the consumer flow of women's clothing has been continuously divided by the e-commerce platform.

Affected by the increasing competition in online apparel sales market and the trend of fragmentation of online traffic, China's macroeconomic slowdown in recent years has also had a negative impact on the overall consumer willingness and consumption ability, resulting in a decline in operating income in 2014.

At the same time, the company pays attention to the long-term training and encouragement of core employees, and has formulated and implemented tens of thousands of equity incentive plans, which further led to larger fluctuations in net profit in 2014.

In response to the changes in the macro economic environment and the competitive pattern of the industry, various strategies have been taken to break up the silk and silk products, such as vigorously promoting multi brand and multi category business strategies, and further focusing on the high value-added links such as design, R & D, operation and sales, outsourcing the warehouse management and customer service links.

The above measures have achieved some success in 2015, and the total paction volume has picked up slightly, while the main business income has dropped by 5.64% over the previous year. The main reason is that the company's sales revenue on vip.com platform has increased considerably over the previous year (because the company's vip.com sales revenue needs to be deducted from the point of payment to vip.com, so the net income of the main revenue has declined).

At the same time, the net profit of the company after deducting non recurring gains and losses in 2015 also rose to 32 million 160 thousand yuan.

The future will continue to promote the development strategy of multi brand, multi category and open cooperation, so as to widen the source of corporate income and profits and enhance the company's ability to resist risks.