Ou Shi Li Parent Company Seeks Listing: Women'S Wear "Big Guy" Sells By Discount.

Most people haven't heard of Heji China.

But when it comes to Euro Shili and FivePlus, many girls have seen sales stores and even their clothes in the mall.

At the end of 2017, Limited by Share Ltd, the parent company of HSF, submitted the IPO application to the SFC.

Although Heji China is famous for its foreign flavor, its boss Xu Yu and Xu brothers are all genuine Wenzhou businessmen who have been in the clothing business for many years.

After the success of the two men's career, she changed her nationality to the island of the Caribbean island Saint James and Nevis, and her name also became Jacky Xu and Ivan Xu.

Heji China currently owns ochirly (Ou Shili), FivePlus, TRENDIANO, COVENGARDEN and other self created brands, acquiring and operating international brands such as MISS SIXTY, etc., and operates Superdry, DENHAM and other international brands in China through joint ventures.

Although the company has many brands, but in order to avoid competition among the internal brands, the company has made different positioning for different brands, and now it has formed many business domains, such as fashion, cowboy, tide card, urban and light luxury.

The company distributes retail channels in global fashion cities such as Milan, London, Hongkong and Shanghai, and forms a direct marketing, distribution and joint marketing network in China.

As of June 30, 2017, there were 2960 stores under the brand lines.

Business performance is far ahead, and it can be called "unicorn" of Chinese women's clothing brand.

At present, the domestic

There are more than 2 enterprises and a large number of brands.

The degree of concentration is low and competition is fierce.

At the same time, under the attraction of the huge development space of China's clothing market, the international clothing brand has speeded up the expansion of the Chinese market, especially in the field of mass casual wear with moderate price and large consumer groups. The fast fashion brands represented by UNIQLO, H&M, ZARA, GAP and C&A have been developing rapidly in China.

As can be seen from the above table, La Natsu Bell (603157) is the largest women's clothing brand in the Chinese market, no matter from the number of stores or the number of employees.

From the number of stores, herkey China can be ranked fifth.

But from the financial data, Hector China is the No.1 of the country's women's clothing enterprises.

Its net profit far exceeded its competitors in 2016, which is 600 million yuan higher than the second ranking Taiping bird (603877).

There is a serious backlog of goods and clothes are sold on a discount basis.

In the 2014-2016 year, the stock amount of the company was 506 million 681 thousand and 200 yuan, 691 million 478 thousand and 200 yuan and 820 million 686 thousand yuan respectively, representing an increase of 36.47% and 18.69% compared with the previous year, accounting for 8.23%, 12.23% and 20.31% respectively.

At the end of 6 2017, the stock amount of the company was 719 million 737 thousand and 300 yuan, which accounted for 21.63% of the current assets.

The backlog of inventory is a common problem in the clothing industry. In the women's clothing industry, the proportion of stocks in current assets is generally high.

Because clothing has two characteristics of timeliness and fashion, clothing companies often use discount promotions to accelerate inventory turnover in the case of unsalable merchandise.

Herke China is no exception.

The average selling price of each brand is up to 250 yuan, and the two brands of MISSSIXTY and COVEN GARDEN have higher average selling price because of their high-end positioning.

In Tmall's ochirly official flagship store, the price of the new spring plate in 2018 was generally higher than 300 yuan.

And the point open "all goods" plate, the highest sales of clothing in most of the less than 200 yuan.

Random entry into a single product can be found that its original price is more than 300 yuan.

Book cash 2 billion yuan, raise investment project is hard to gather together?

At the end of 2015-2017 and 6 months, the company's monetary funds were 1 billion 277 million yuan, 1 billion 503 million yuan, 2 billion 68 million yuan and 1 billion 95 million yuan respectively, accounting for 20.73%, 26.57%, 51.18% and 32.90% of current assets respectively.

At the end of 2016, the company's bank deposits amounted to 1 billion 637 million yuan.

By the end of 6 2017, the bank balance remained 1 billion 90 million yuan.

This IPO Heji China plans to raise 3 billion 226 million yuan.

Among them, the marketing network construction plan costs 1 billion 839 million yuan.

Heji China intends to carry out marketing network layout in a number of first and second tier cities nationwide, and plans to build 6 experience centers and 350 standard stores.

Among them, the northern Guangzhou and Shenzhen four first tier cities to build 157 stores, an average of 40 new stores in each city.

Take "Europe time" brand as an example, to observe Mr. Jun's search in Baidu map, the brand has 66 stores in Beijing, covering all parts of the East, West, North and south, main city and suburban area.

Basichouse, which is similar to Europe's location and pricing, has 54, 28 and 66 storefronts in Beijing, respectively, including Taiping bird and Lily.

Founded in 1999, after 20 years of development, it can be determined that its development scale in Beijing is matched with the consumption population and consumption level of the whole city.

Most of the middle end shopping malls in Beijing have stores in Europe.

And the company plans to set up 44 stores in Beijing, as Hector China's first big brand of the European brand, presumably will also occupy a lot of shares.

In the case of market saturation, whether there are suitable locations, shopping malls to open stores for companies, whether there are enough people to absorb products, observation of the king is skeptical.

In addition, one of the HQ's China investment projects is supplementary liquidity, which will cost 500 million yuan.

In 2016 -2017 June, the net cash flow generated by hitkey's Chinese business activities was 1 billion 87 million yuan and 414 million yuan respectively.

In view of the current cash flow and cash flow status of herkie China, it is observed that the reasonableness of the amount and purpose of its raising may lead to further exploration by regulators.

The price gap between the same capital increase is huge, forming huge share payment.

Heji's shareholding structure in China is rather complicated, with a large number of shareholders, after several rounds of capital increase and equity pfer.

In July 2016, Tianjin signed a "capital increase agreement" with all parties such as Tianjin and Tianjin. It agreed that HQ limited increased its registered capital of HK $1 million 607 thousand and 300, of which the capital increased by 6 million 765 thousand yuan and 143 thousand and 400 Hong Kong dollars. Tianjin increased its capital by 146 million yuan, and subscribed 1 million 463 thousand and 900 Hong Kong dollars.

But the cost of the two companies' capital increase is simple, but the gap is very obvious.

The capital increase in Tianjin and Tianjin is 47.17 yuan / capital contribution and 100.03 yuan / capital contribution respectively.

Tianjin Tong Qi is an employee stock ownership platform of the company, while the limited partners of Tianjin Xiangxiang are all controllers of the company's distributors.

From the cost of capital increase, we can see the closeness and closeness.

But this constitutes the behavior of share payment.

The so-called "share based payment" is the abbreviation of "share based payment". It refers to the paction of the liabilities granted by the enterprise to the employees and other parties to provide services, or to assume liabilities based on equity instruments.

Apart from Tianjin, the company also has several ESOP platforms, resulting in huge share cost.

In 2015, 2016 and 2017 1-6, the company confirmed that the share payment cost was 110 million 594 thousand and 700 yuan, 27 million 224 thousand and 200 yuan and 5 million 515 thousand yuan respectively.

In the case of rival listings, Hertz's listing process has slowed down a lot.

From its historical ownership structure, the company may have planned to go to the US stock market or Hong Kong stock market, but somehow it eventually returned to A shares.

Let's wait and see whether the listing will be successful.