Did Hershes Parent Company Succeed In Attacking IPO?

According to the world clothing shoes and hats net, in 1999, Xu Yu and his wife Li Shanhu founded in Wenzhou.

Lane Bryant

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After nearly 20 years of entrepreneurship,

Brand grows into fashion group and attacks IPO.

According to the securities and Futures Commission, in December 22nd, ochirly, the parent company of Limited by Share Ltd, issued an initial public offering prospectus.

No more than 127 million shares will be issued on the Shanghai stock exchange, which will account for no more than 15% of the total share capital and no less than 10%.

In 2009, Heji still had only one brand in Europe, but after that, Xu Yu's fashion layout expanded constantly. Through the way of internal hatching, extension and merger and joint venture operation, we quickly realized the leaping of single brand to multi brands, forming the brand matrix of fashion, leisure, city, cowboy, light luxury and so on.

At present, Heji China owns ochirly, Five Plus, TRENDIANO, COVEN GARDEN and other self created brands, and has acquired and operates MISS brands such as SIXTY and other international brands in the world. Through joint ventures, it operates Italy brand 10 Corso Como, British brand Superdry, Holland brand and other international brands.

According to the prospectus, HQ's operating income in 2016 was 6 billion 446 million yuan, the net profit attributable to shareholders of the parent company was 1 billion 106 million yuan, and in 2017 1-6 yuan was 2 billion 883 million yuan and 371 million yuan respectively.

In a publicly traded high-end and high-end women's clothing industry, herkie's profitability is relatively high, and this year's gross profit margin is 70.54%, lower than that of another women's clothing brand, but higher than Taiping bird, an Zheng fashion, Japanese fashion, Vigna S and so on.

Before the Taiping bird wrote in the prospectus, its main competitor is Ou Shi Li.

Vip.com investor, Ding Lei's partner

Hector's actual control is Jacky Xu (Xu Yu's English name) and Ivan Xu, and the two are brothers. The former is the chairman and general manager of the company. Since its establishment, the company has been focusing on the operation and management of HQ China. The latter is the director of the company, vice president and President of Five Plus brand, and two people hold HQ BVI 76.5560% and 22.7061% shares respectively.

Li Shanhu is a director, deputy general manager and chief creative officer.

Xu Yu, founder of Ou Shi Li (left)

Xu Yu was born in March 1972. He has the right of permanent residence in Hongkong, the citizenship of Saint gates and Nevis, and EMBA, the Cheung Kong business school, DBA, the Yangtze River Business School.

Ivan Xu was born in October 1974, has the right of permanent residence in Hongkong, Saint Ji's and Nevis nationality, the Yangtze River Business School EMBA.

In 2012, LCapital Asia, a private equity fund of LVMH, purchased 10% of Heji international for $200 million, calling it one of the biggest investments of foreign companies in China.

As part of the L Capital expansion plan, Xu Yu then established a joint venture with Italy fashion company Sixty Group to acquire and take over Miss Sixty, Killah and Energie Asia Pacific business.

In January 2013, Heji International announced its cooperation with Italy luxury retail store 10 Corso Como. At the end of the year, it opened a concept store under the 10 Corso Como line in Shanghai.

At present, however, the joint venture's 10 Corso Como business has suffered a continuous loss during the reporting period.

Although hkei has adjusted the management strategy of 10 Corso Como, if it can not turn a profit in the short term, it will affect its profitability.

In addition, Xu Yu is also keen on investment, relying on mature retail experience to invest in Guangzhou electric business enterprise "vip.com", is still one of shareholders, and NetEase founder Ding Lei jointly invest in wine industry.

In 2012, Xu Yu was named "one of the 25 Chinese in the global fashion industry" by Forbes. In 2013-2015 years, he was selected as the BoF Fashion Business Review "the 500 strongest personages in the world of fashion power".

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Brand fashion gene

In the early days of the brand building, the European market focused on the high-end market, which was related to Li Shanhu's background as chief creative officer.

Wenzhou's local media have reported that Li Shanhu has a lot of connections in the fashion circle. Not only has he been invited to serve as China's World Miss's clothing image consultant, he is the first Chinese designer to be invited to attend the Boao Asia Economic Forum to display its design works, and she is also a good friend with star Fan Bingbing and so on.

In 2016, Europe invited ChiaraFerragni, a well-known international blogger, to take a series of holiday blockbusters and street filming reports.

At the same time, the brand also filmed the Christmas Star Fashion blockbuster video with actress Cai Yilin.

In addition to bundling the Internet and celebrities, Heji also knows the way of social media operation.

Five Plus invited stylish esthetics master Roger (Zheng Jianguo) to set up a "trend school", touring around the country, explaining the trend of the summer and autumn and winter trend in the summer of 2016, and conducting live broadcast. The number of people watching online has accumulated more than one million, and the number of participants who participate in official platform interaction has accumulated more than 300 thousand.

In addition, in 2017, Hector played a lot in IP cooperation.

Europe and Disney Pixar "motor racing" cross-border cooperation, launched the Cars Collection By ochirly cross-border Limited clothing series; Five Plus and Disney "beauty and the beast" together to break through the traditional princess style theme clothing.

As early as the end of 2013, Hertz had been involved in brands and products outside the garment, and its 10 Corso Como in Shanghai incorporated the vanguard of design, art, fashion and gourmet.

In 2017, Heji's light luxury brand MISS SIXTY also made more attempts at online retail outlets. It opened the MISS SIXTY tannin tidal Experience Hall in Chongqing's North City street. It not only sells clothing, but also sells mobile phone shells, headphones, coffee, ice cream and so on, and has been promoted to the global trend gathering experience shop.

Electricity providers accounted for an obvious increase

The prospectus also disclosed the purpose of the fund-raising fund. The initial public offering of RMB common stock (A shares) is not more than 127 million shares, of which 1 billion 839 million yuan is used for marketing network construction projects, 536 million yuan for supply chain and logistics center construction projects, the rest is for information system construction and supplementary liquidity.

As of June 30, 2017, there were 2960 stores in Heji's brand line, and in order to adapt to the change of consumer demand, Heji was improving the proportion of direct mode through adjusting channel strategy.

From 2014 to 2017 1-6, the revenue of HQ's direct battalion mode accounted for 39.02%, 39.15%, 42.12% and 48.76% of the company's main business revenue respectively, and the number of Direct stores at the end of each year was 765, 898, 1034 and 1107 respectively.

In the construction of the marketing network to be invested, Heji plans to build 356 self operated stores.

Over the past few years, Heji's investment in the electricity supplier has also been obvious to all.

From 2014 to 2017 1-6, HQ's electricity sales accounted for 5.75%, 7.34%, 13.14% and 15.51% of the main business revenue respectively, and the scale and proportion of e-commerce business continued to increase.

In 2017, Tmall's double 11 and Europe's force ranked ninth in women's clothing.

Hector also clearly stated in the prospectus, "with the continuous strengthening of consumer online shopping habits, online sales mode is becoming more mature. If the company fails to keep pace with the times, strengthen the construction and recruitment of e-commerce related personnel, increase interaction with consumers through social media, and use new payment methods, the development of the company's e-commerce business may be adversely affected, thus affecting the company's business and profitability."

It is worth mentioning that, thanks to the emphasis on the direct camp mode, the proportion of electricity supplier income has increased, and HQ's inventory turnover has dropped from 3.95 in 2014 to 2.21 in 2017.

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