Jiangnan Cloth Will Be Listed On The Highest Fund-Raising Of HK $966 Million.

The biggest designer clothing brand in China will finally be listed in Hongkong on the 31 of this month.

In October 18th,

The IPO stock exchange will be held in Hongkong on the 19-24 day, offering 125 million shares of H-shares worldwide.

The prospectus further shows that it includes 100 million new shares, and Hongkong and international offering shares account for 10% and 90% respectively.

The price per share is HK $6.08-7.73, the highest fund-raising of HK $966 million. It was officially listed on the morning of 31 on the 31 th of this month, and the stock code is "3306.HK".

The exclusive sponsor and the exclusive global coordinator are build silver international.

The IPO will introduce a cornerstone investor, Tian Hai International Holdings, to subscribe for us $15 million shares, representing about 12%-15.26% of the total fund raising.

Public information shows that its parent company is Guangzhou Tian Hai lace Co., Ltd., a supplier of Jiangnan cloth supplier. Its main business is designing and manufacturing lace and other fabrics.

Regarding this, Wu Jian, founder and chairman and chief executive officer of Jiangnan Buyi group, said that the introduction of the upstream industry has confidence in the company's development.

At the same time, the company's cash flow is good, will be listed after the annual net profit of 75% of the dividend payout, so that shareholders can share the company's long-term growth.

40% funds for building logistics centers

For fund-raising purposes, the reporter reported that 37% will be used to build a new one.

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Wu Jian further said that the logistics center in Xiaoshan, Hangzhou, will be completed in the middle of 2019, and is expected to support the development of the company in the next 5 years. It will undertake the role of inventory return and distribution, and will help reduce costs.

Inventory is always one of the main pain points for all apparel manufacturing and sales companies.

Therefore, continuous upgrading of supply chain and logistics management capabilities will further form a competitive barrier.

Jiangnan cloth will first improve the supply chain and logistics infrastructure to optimize product replenishment, shipment coordination, inventory and quality control.

For example, a new logistics center with a total construction area of 90 thousand square meters will be built. The annual sorting and distribution capacity will be about 12 million 800 thousand products, with a total capital expenditure of about 319 million yuan.

At the same time, Jiangnan cloth will continue to invest in supply chain management, upgrade inventory sharing and distribution system, so as to optimize internal orders and inventory management and reduce redundancy.

Wu Jian explained that although the company is mainly based on physical stores, there are more and more online orders. The new logistics center has many functions such as negative distribution and quality control. If outsourcing logistics costs will be higher, it will tend to build its own logistics center, and it is expected that it will be put into operation before 2019 to support the development needs of the company in the next 5 years.

In addition, 30% are used to expand the company's brand and product mix, 28% for strengthening the full channel interactive platform, and 5% for company operating capital and other general corporate purposes.

The dividend payout rate is as high as 75%.

There are many competitors in the domestic designer market.

Shanghai's su ran, Dazzle, Guangzhou's MO&Co. and so on. Why does the south of the Yangtze River maintain its leading competitive edge?

From the perspective of market share, Jiangnan cloth dress, founded in 1997, has become a leader.

According to the application version of the prospectus announced, in 2015, the total retail sales of Jiangnan cloth accounted for 9.6%, ranking the first in the Chinese designer fashion industry, and accounting for 0.2% of China's clothing industry.

From the financial data, as of the 9 months ended March 31, 2016, the total income of the group was 1 billion 535 million yuan, 70% came from women's clothing, gross margin increased to 62.6%, and the sketch was 68.3%.

The profit was about 213 million yuan, an increase of about 13.9% over the same period last year.

The operating profit of Jiangnan Buyi group has increased by 23% in the past three years, reaching 343 million yuan in 2016.

Group cash flow is abundant, 2014 - 2016 operating activities cash flow compound growth rate reached 83.7%.

Thanks to the steady growth of the company and the healthy cash flow situation, Jiangnan Buyi will have a long-term dividend plan after the listing, and the dividend payout ratio will be as high as 75%.

At present, Jiangnan cloth clothing includes five brands, namely

Men's wear CROQUIS (sketch), children's wear JNBY by JNBY, high-end women's wear less and new children's wear brand Pomme de Terre.

Jiangnan cloth clothing brand sales account for

During the 2005-2011 years, Jiangnan Buyi continuously expanded its brand portfolio and brought strong growth to its overall revenue.

From fiscal year 2014 to fiscal 2015, sketches, JNBY by JNBY and less increased by 25.3%, 174.7% and 21.3% respectively.

Among them, children's clothing brand performance for 3-5 year old baby group is more prominent.

In July 2016, Jiangnan Buyi new child brand launched Pomme de Terre for children and adolescents aged 6-14.

The brand names of men and women of all ages at the age of 3-50 were completed.

As a designer led fashion company, Jiangnan Buyi said that in the future, it will focus on product planning and design, brand promotion and so on. Since July 2015, all products have been outsourced to OEM suppliers.

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Full channel fans interactive platform

The full channel interactive platform has become a key factor in promoting the growth of the clothing business in the south of the Yangtze River.

As of June 30, 2016, the 1316 retail outlets owned by Jiangnan Buyi full channel platform in China and 12 countries or regions were 432 self operated stores, 855 distributors and 29 overseas customers.

In addition, online channels are Tmall, Jingdong, vip.com, WeChat and so on.

In an interview with curiosity daily, Li Lin, founder and chief creative officer, once said that after 2011, JNBY had almost stopped its expansion, and did not plan to expand in the three tier cities (except for Zhejiang province). It was not until 2015 that it accelerated the resumption of shop opening plans, mainly in Xi'an, Chongqing and so on.

For the future shop strategy, Wu Jian said at the press conference that Jiangnan cloth clothing will maintain a steady opening strategy. Children's clothing will continue to increase the coverage of two or three line cities in the future. JNBY brand will maintain about 20 new stores every year, and will be dominated by the mainland market.

It is worth mentioning that Jiangnan Buyi is building a community based on "fans economy", which promotes sales and brand identification through the dissemination of design concepts and lifestyles. The results are quite striking.

In 2015, Jiangnan cloth Yi launched WeChat service number. As of March 31, 2016, there were 570 thousand users, attracting an average of about 40 thousand new users per month.

According to the statistics of fashion headlines, the number of fans of WeChat's JNBY platform ranked first among women's clothing in China.

This is a good achievement in the whole media industry.

Meanwhile, the number of member accounts increased from 360 thousand in June 30, 2014 to 1 million 100 thousand as of March 31st this year, of which the number of active members increased from 86000 to 170 thousand.

The increase in the number of fans has a direct and effective effect on the same store sales. In the 2014 fiscal year, fiscal year 2015 and the 9 months ended 2015 and March 31st this year, the same store sales growth rates were 0.1%, 7.1%, 6.3% and 8% respectively.

The proportion of sales of members also increased from 40.2% in fiscal year 2014 to about 56.6% now. The purchasing power of the contribution has exceeded half of the total retail sales.

In the summer of 2012, Jiangnan cloth clothing first introduced fund investment and began to become more commercialized. In June 24, 2013, the former partner of Alibaba, B2B, joined the former CEO Wei Zhe, and appointed a non-executive director to provide strategic advice on group business development.

A few years later, what kind of chemical reaction will it bring to the capital market?

But as Li Lin once told the media, "I didn't plan to go public.

But because of the investment of the fund, you know, the money of the fund always comes back to the capital market.