Shanshan Clothing Listed In Hong Kong Was Approved By The SFC To Help Expand Market Resources

In May 10th, Ningbo Shanshan stock holding subsidiary company Shanshan brand operation Limited by Share Ltd (hereinafter referred to as "Shanshan brand") received the reply of the China Securities Regulatory Commission on Approving the issuance of overseas listed foreign shares by Shan Shan brand, and approved that the Shanshan brand issued no more than 42857000 shares of overseas listed foreign shares, with a face value of 1 yuan per share, all of which were ordinary shares.

After the completion of this issue, the brand of Shanshan can be listed on the main board of The Stock Exchange of HongKong Limited.

This means that the original main business of Shanshan clothing will be split and go to H shares separately.

The industry said that after the listing of Shanshan clothing in Hong Kong, it will be able to expand the channels of financing through the strength of the market, and gather more resources and strength. This will undoubtedly help greatly the brand and scale of the Chinese fir.

Splitting is the inevitable choice.

For a long time, the public's perception of Shanshan is an old clothing company.

This strong recognition stems from the great success of Shan Shan in garment industry since 90s.

Chinese fir clothing is an early and well known clothing brand in China. It was founded in 1989 and has witnessed the rise of China's economy and fashion industry in the 30 years.

In this process, the clothing of Shan Shan has created many first. The first one is to go to CCTV to put on clothing advertisements, the first to open a suit store in Nanjing road of Shanghai, and to be listed as the first garment enterprise in China.

In 90s, the market share of fir was 37.4% in the domestic market.

However, this brilliance only belongs to the past. With China's accession to the WTO, the garment industry is fully open, and foreign excellent brands are pouring in, so the clothing market will inevitably fall into fierce competition.

Based on this consideration, Zheng Yonggang, founder of Shanshan, chose to enter the field of lithium ion battery materials in 1999.

After nearly 20 years of development, Shanshan has become the world's largest supplier of cathode materials, anode materials and electrolyte materials for lithium-ion batteries.

According to the annual report of Shanshan 2017, the company achieved operating income of 8 billion 270 million yuan, an increase of 51.07% over the same period last year, a net profit of 896 million yuan, an increase of 171.42% compared with the same period last year. Net profit after deducting non recurring gains and losses was 441 million yuan, an increase of 72.07% over the same period last year.

Among them, the new energy business achieved 7 billion 489 million yuan, accounting for 90.5% of the total business revenue; the apparel brand operation business was 666 million yuan, accounting for 8.1% of the total revenue of the company, and the net profit attributable to 49 million 374 thousand and 800 yuan, accounting for 5.5%.

In April 26th, the Research Report of Tianfeng Securities said that in view of the company's current focus in the new energy field, the company split the clothing business on the H share market, and it could get better financing.

Reshaping brand positioning

Domestic men's wear

In recent years, the plight and competition intensified, and the competition pattern of Shanshan in men's clothing industry is more brutal.

According to the data released by the China Industrial and Commercial Research Institute database, in 2015, the market concentration of Chinese men's suits was still low, and the market share of the top ten brands of men's suits was only 23%.

Among them, YOUNGOR (600177.SH) accounted for 6.62% and fir fir accounted for 2.25%.

In the prospectus, Shan Shan said, "according to the advisory report, in 2017, our FIRS brand is the fifth largest business dress brand in China in terms of retail income."

Nevertheless, fir

A long-term plan has been drawn up to try to recover lost territory and reshape the past glory.

On many occasions, Zheng Yonggang expressed different feelings towards the garment industry. He said he would never abandon his investment in the clothing industry, and encouraged the management team to strengthen innovation, open up new models and conduct the two venture.

To this end, in 2015, Shanshan clothing was launched as a new brand positioning Brand SHANSHAN.

The new positioning SHANSHAN is more fashionable and casual in the style of product design, mainly for young men aged 28 to 35.

SHANSHAN aims at the young men's business market, learning ZARA and UNIQLO's fast fashion mode. The style is more fashionable and changeable, the price is more affordable, and the update speed is faster.

With the gradual maturity of the new positioning SHANSHAN brand, there are mainly two core brands of Shanshan clothing brand, namely, the business dress brand which focuses on mature men, FIRS and leisure for young men.

Brand SHANSHAN, Shanshan clothing has taken a key step in the diversified operation of clothing brand.

From the current sales situation, the two brands still occupy an important position in FIRS, while SHANSHAN is coming from behind.

In the 2015-2017 years, the sales of FIRS brand products accounted for 82.3%, 77.9% and 62% of the total brand respectively. SHANSHAN accounted for 0.3%, 9.1% and 29.4% respectively. The growth rate of the new brand was faster, and the proportion of the new brand increased significantly.

From the perspective of the industry environment, with the rapid growth of China's economy and the upgrading of consumption, it also promotes the rapid expansion of China's men's wear market.

From 2013 to 2017, China's menswear retail revenue increased by 12.3% annually, and the total scale increased to RMB 649 billion 800 million yuan.

Statistics show that in the next five years, China's men's wear market will usher in a trillion level market scale.

The growth and scale of such industries will also bring new opportunities for the development of brand enterprises such as Shanshan.

It is understood that Shanshan clothing listed in Hongkong, on the one hand, with the help of Hongkong capital

Strength, on the one hand, with the help of Hongkong's international metropolis platform, we should strengthen the expansion of international brand cooperation and operation, and inject vitality into the development of enterprises.

With the help of this internal industry, we can gather more resources and strength, further enhance the degree of internationalization, innovate in operational thinking, focus on the core brand FIRS and SHANSHAN, turn from product thinking to brand thinking, and open up a new way of development.