GXG, The Most Profitable Menswear Brand In Mainland China, Has 2250 IPO Stores In Hong Kong And 3 Billion 787 Million Revenue Last Year.

In April 17th, mosang Group Holdings Limited (hereinafter referred to as "Mu Shang Group") issued a notice that the company passed the listing hearing of the HKEx, Credit Suisse Bank, Citibank and the international joint sponsor of the company.

According to the financial report, as of 2016 to 2018, the income of Mu Shang Group was RMB 3 billion 18 million yuan, 3 billion 510 million yuan and 3 billion 787 million yuan respectively, gross profit 1 billion 618 million yuan, 1 billion 899 million yuan, 2 billion 32 million yuan, annual profit 400 million yuan, 422 million yuan, 375 million yuan.

For fund-raising purposes, one is used for the existing debt of mousse group and the financial cost of the company is reduced; the two is to expand the company's brand and product mix through the acquisition of brand acquisitions or strategic alliances; the three is to upgrade the offline retail stores to intelligent stores; the four is to purchase land and build advanced intelligent logistics centers of the company, with the expected construction area of 200 thousand to 250 thousand square meters; five will be used for the working capital and other general corporate purposes of the company.

The core brand portfolio of the group includes two main categories:

One is the GXG series: GXG, gxgjeans and gxg.kids, and the two is sportswear: Yatlas and 2XU, each of which has different design styles for different customer groups.

The group sells products through various national sales channels, including multiple online and offline sales networks.

As of December 31, 2018, the distribution platform of mosang group includes online channels (such as Tmall, Taobao, WeChat applet and vip.com), and offline networks of 2250 retail outlets nationwide, including 720 self operated stores, 532 partnership stores and 998 distribution outlets.

In order to further increase the market share, we plan to open different types of retail outlets and enhance our brand awareness, and convert some of the partnership stores and distribution outlets into self operated stores to better control their offline retail networks. On the other hand, the Group continues to work with a wide range of major online platforms to reach a wider customer base.

As of 2017 and 2018, the growth rate of same store sales was 18.9% and 5.6% respectively.

For online channels, the growth rate of same store sales in 2017 and 2018 was 57.9% and 13.3% respectively.

For offline retailers, the growth rate of same store sales in 2017 and 2018 was 0.3% and -0.4% respectively.

In 2017 and 2018, the sales growth rate of self store in mousse group was 4.2% and 1.5% respectively.

The mochan group plans to continue to enhance the performance of the existing stores through various measures, such as upgrading offline retail outlets to smart stores, improving store design and appearance, improving service quality, enhancing customer value added experience, optimizing information management systems, putting more resources into maximizing synergy, and building flexible supply chains for more popular inventory units.

Moshang group will also enhance its own store operation and inventory management capabilities.

In addition, Mu Shang Group plans to invest more efforts in selling new products through online channels.

The mousse group said that maintaining the best level of inventory and low sales return rate is critical to the success of the company's business. As of 2016, 2017 and 2018, the inventory turnover days of the group were 195 days, 197 days and 194 days respectively.

As of 2016, 2017 and December 31, 2018, the provision for manufactured goods was RMB 58 million 600 thousand yuan, RMB 83 million 500 thousand yuan and RMB 62 million 200 thousand yuan respectively.

As of 2016, 2017 and 2018, our expected sales return rates were 21.1%, 35% and 29.6% respectively.

In 2016, 2017 and 2018, the actual sales return rates of the mousse group were 24.2%, 26.8% and 35% respectively.

Public information shows that the mohsun group is a leading fashion men's clothing company headquartered in China. It operates a new retail platform and integrates offline retail outlets and online channels with the support of big data analysis. It focuses on providing customers with seamless integration of shopping experience and understanding of customer needs.

According to consulting materials, the market share of China's fashion men's clothing market in 2018 accounted for about 21% of the total men's clothing market, accounting for about 7.5% of the clothing market.

According to the information of burning consultation, in 2018, the company accounted for about 3.3% of China's fashion men's wear market and ranked second nationwide.

With its leading position in China's fashion men's wear market, MOS group has been strategically extended to the sportswear market and other fields to enrich the company's brand and product mix.

In addition, the online market has become the new main battleground of Chinese fashion men's clothing company.

According to the information of burning consultation, the company ranked first in China in 2018, with a total retail income of about 5.2%, and online penetration of 36% of the country's total.