Adhering To, Withdrawing And Diverting, The Different Choices Of Enterprises On The Road Of Listing

GXG parent company mohsun group chose to list in Hong Kong. Ochirly parent company Heji China has terminated the examination. Another two clothing companies are still on the queue list of A shares, which is the current situation of IPO in the apparel industry.

Mousse group (listed in Hong Kong)

In March 20th, mosang Group Holdings Limited submitted a IPO application document to the HKEx and plans to land on the main board of the HKEx.

The prospectus shows that the company is a fashion menswear company, operates a new retail platform, and integrates offline retail outlets and online channels under big data analysis.

In terms of total retail revenue, the company occupies about 3.3% of China's fashion men's clothing market in 2018 and ranks second in the country.

In line with total retail revenue, the company ranked first in China in 2018, with a total retail revenue of about 5.2%.

The company's products are aimed at young customers who pursue fashion and personalities and lifestyles. The company adopted a multi brand strategy, launched flagship GXG brand products in 2007, launched gxgjeans in 2010, compared with GXG for slightly trendy male customers, and launched gxg.kids in 2012 to enter the children's wear market.

In addition, the company launched Yatlas in 2014 to provide sportswear and apparel, and introduced 2XU in 2017 to provide sportswear services.

As of 2016, 2017 and December 31, 2018, the income of the group was 3 billion 18 million yuan, 3 billion 510 million yuan and 3 billion 787 million yuan respectively, with gross profit of 1 billion 618 million yuan, 1 billion 899 million yuan and 2 billion 32 million yuan respectively, with an annual profit of about 400 million yuan, 422 million yuan and 375 million yuan respectively.

As of December 31, 2018, the company had 2250 offline retail outlets, including 720 self operated stores, 532 partnership shops and 998 distribution outlets.

The MOS group plans to raise the amount of money raised in this listing to repay the company's existing debt and reduce its financial expenses, and will be used to expand the brand and product mix through seeking brand acquisitions or strategic alliances.

The company plans (including) selectively pursue high-end fashion women's clothing, suitable for 2 to 15 years old children's middle end fashion children's clothing and mid end fashion sportswear company's brand acquisition or its strategic alliance.

The company will aim at brands that have considerable market share and business scale in China or overseas, or overseas brands that still have huge potential for growth in China. The third plan is to upgrade the offline retail stores to intelligent stores. The company upgraded the 121 offline retailers to intelligent stores in 2018, and plans to upgrade some 500 offline retail outlets to smart stores in 2019, 2020 and 2021 respectively. Another plan is to purchase land and build a company's own intelligent logistics center, with an expected construction area of 200 thousand to 250 thousand square meters. In addition, some of the funds will be used for working capital and general corporate purposes.

Hector China (end of review)

In June 21, 2018, hekey (China) submitted the latest draft prospectus to the SFC website and plans to land on the main board of the Shanghai Stock Exchange.

The latest news shows that Heji China has been on the list of terminated censorship, and the end of the review is February 12, 2019.

Hector's China prospectus shows that the company currently owns ochirly, Five Plus, TRENDIANO, COVEN GARDEN and other self created brands, has acquired and operates MISSSIXTY brands and other international brands worldwide, and has been operating Superdry, DENHAM and other international brands in China through joint ventures. Now it has formed many fields of business, such as fashion, denim, tide brand, metropolis, light luxury and so on. The company has formed a retail channel for global fashion cities in Milan, London, Hongkong and Shanghai, and has formed direct marketing, distribution and joint operation in China, covering the marketing network of the core business circle of major cities.

As of December 31, 2017, there were 3046 stores under the brand lines.

From 2015 to 2017, the operating income of the company was 6 billion 96 million yuan, 6 billion 446 million yuan and 6 billion 590 million yuan respectively. The annual compound growth rate from 2015 to 2017 was 3.97%, and the net profit was 1 billion 126 million yuan, 1 billion 153 million yuan and 961 million yuan respectively.

The company's main business revenue mainly comes from ochirly, FivePlus, TRENDIANO and MISS SIXTY four brands, the four brands from 2015 to 2017 accounted for more than 96% of the total main business income.

Heji China applied for the IPO plan to raise funds of 3 billion 226 million yuan, and invested in marketing network construction projects, supply chain and logistics center construction projects, information system construction projects and 500 million yuan to supplement liquidity respectively.

Among them, the marketing network construction project fundraising 1 billion 839 million yuan, intends to adopt the way of acquisition and leasing, plans to build 6 experience centers and 350 standard stores.

The experience center store is located in six cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Chongqing. The new standard store of the first and second tier cities in the country will increase the proportion of the company's direct terminal.

Carmen apparel (pre disclosure update)

In October 31, 2018, Beijing's Carmen apparel submitted a draft prospectus to the SFC website. The total amount of the prospectus is no more than 27 million shares, which is no less than 25% of the total share capital issued. It plans to go to the SME Board of Shenzhen Stock Exchange.

The prospectus shows that Carmen apparel is a high-end and children's clothing business. The company's products involve 0-16 - year-old (mainly 2-14 years old) children's clothing and underwear socks and other related products.

By the end of 6 2018, the company had opened 758 stores in the country, including 324 outlets and 434 franchisees. At the same time, the company has established online direct sales channels through e-commerce platforms such as vip.com, Tmall and Jingdong.

The company adopts multi brand operation strategy, and its products include three categories, including self owned brand, authorized operation brand, international retail agent brand, and so on, with a total of 24 brands.

The company's own brand "water boy" was founded in 1995, the company began to operate the international children's wear brand retail business from 2005. By the end of June 30, 2018, the company's international children's wear brand has developed to twenty-one, including "KENZOKIDS", "YOUNG VERSACE", "FENDI", "Chlo e", "ARMANI JUNIOR" and "HUGOBOSS" and other international second line brands.

In addition, the company tried to sell children's clothing brand collection shop in China, and founded the "bebelux" international high-end boutique boutique store.

The company's revenues from 2015 to 2017 and 2018 1-6 were 385 million yuan, 402 million yuan, 548 million yuan and 329 million yuan respectively, with net profit of 30 million 988 thousand yuan, 37 million 105 thousand and 200 yuan, 54 million 617 thousand and 600 yuan and 39 million 106 thousand and 500 yuan respectively.

From 2015 to 2017, the annual compound growth rate of the company's main business revenue reached 19.32%. In the development of e-commerce business, the main business income of the company from 2015 to 2017 increased from 24 million 138 thousand and 100 yuan to 172 million yuan, an obvious increase.

Jordan sports (past meeting)

Jordan sports has been in the meeting for a long time, but has not obtained the approval status. The main reason lies in the lawsuit.

But Jordan sports did not give up the A share listing target and stayed on the list of IPO queuing companies.

In November 21, 2011, Jordan sports submitted a draft prospectus for IPO to the SFC, which was awarded in November 25th.

Up till now, Jordan sports is still in the past.

The Commission referred to Jordan sports in a news conference in 2014. It said that there was a major pending lawsuit in Jordan sports. It belonged to the special situation of the enterprise. The SFC will push forward the listing work according to the procedures after the relevant limited factors are eliminated.

Since the financial data of the prospectus application ended in June 2011, Jordan sports latest financial data has not been published publicly.

Prospectus shows that Jordan sports sales in 2010 amounted to 2 billion 930 million yuan, attributable to shareholders of the parent company's net profit of 520 million yuan, as of June 30, 2011, Jordan brand stores a total of 5715.

Although the road to listing is bumpy, the company is in the queue for IPO for a long time, but Jordan sports still has some actions in operation.

Statistics show that the company hired 7 athletes spokesmen in basketball, comprehensive training, running and other fields, sponsored the National Games in 2017, and put forward the brand upgrading and remodeling plan this year.

Whether Jordan sports finally smoothly landed in the capital market, for garment enterprises, industrial development is still the foundation for enterprises to continue to move forward.

Conclusion: since 2018, the IPO market situation of "Hong Kong stocks are active and A shares are strict" has not changed.

According to media reports, in March 28th, Ernst & Young released the global IPO trend in the first quarter of 2019.

The report shows that in the first quarter of 2019, IPO activities in the mainland and Hongkong markets decreased, and the volume and amount of financing declined. But the data rebounding significantly in the fourth quarter of 2018.

In the first quarter of 2019, there were 30 A shares in Shanghai and Shenzhen two cities in the first quarter of 2019, raising funds of $3 billion 700 million.

The Hongkong stock exchange held the highest number of pactions and fundraising in the first quarter of 2019. The IPO activity in Hongkong's main board market increased slightly compared with the same period last year. Following the strong performance of IPO in 2018, the performance in the first three months of 2019 showed a mild trend.

In the background of the active IPO market and the cold A share market, it seems that there are signs of recovery. Looking back at the situation of garment enterprises in the IPO market, it can be said that the performance is basically synchronized with the market situation.

After last year's termination of Mass Phil's review, herkie China, which updated its prospectus in the first half of last year, also stopped censorship this year. Last year, it was announced that the mohon group, which plans to submit the prospectus to the A shares, chose to go to Hong Kong this year. In addition, Jordan's sports, which was submitted to the listing application last year, and the queuing "regulars" Jordan sports remained on the IPO queue list of the IPO shares.

Generally speaking, since 2018, more and more fashion enterprises have chosen Hongkong listing and A shares IPO audit has not changed.

However, with the promotion of the reform of multi-level capital market vitality, strong and willing clothing enterprises will have more and better capital platform to choose from, and a more appropriate way of financing to promote further development of enterprises.