BELLE International Split Business Is Submitted To IPO Application At The End Of This Month.

China's largest shoe retailer Belle International Holdings Ltd (hereinafter referred to as "BELLE international") plans to formally submit its sports business to the IPO application at the end of this month. It expects to raise 1 billion US dollars and complete the listing as soon as possible in the second half of this year.

According to information obtained by Uncle C, BELLE international has hired Merrill Lynch, Merrill Lynch and Morgan Stanley to arrange IPO for them.

In July 27, 2017, BELLE International announced its delisting at HKEx.

In the 2 days before July 25th (Cayman Islands time), the privatization proposal put forward by BELLE international in the form of agreement came into effect. The high conglomerate capital combined with CDH investment, and the consortium of BELLE international executive director Wu and the rich group, completed the privatization of BELLE international with us $6 billion 800 million (HK $53 billion 100 million).

Although the volume of pactions has created the largest privatization record in Hong Kong stock history, it is far from the market value of nearly 150 billion Hong Kong dollars at the peak of BELLE international.

After privatization, the high leverage capital held 57.6% of the company's shares, and CDH investment held 11.9% of the shares, and participated in the management of the privatization consortium, including 30.5% of the shares held by Wu and Sheng.

BELLE's international earnings before the delisting showed that in the 2017 fiscal year ended March, BELLE international revenue increased by 2.2% to 41 billion 700 million yuan, of which sports and clothing business revenue increased 15.4%.

In addition, according to the information provided by BELLE international, the total retail sales of group terminal in fiscal year 2018 exceeded 50 billion yuan, and the profit and sales of sports business are expected to grow by more than 20%.

If calculated on the basis of 20%, the revenue of sports business in fiscal year 2018 is about 27 billion 300 million yuan, and the profit is expected to be about 1 billion 300 million yuan.

Last year's "double 11" period, online sales of BELLE international sports business increased by 110% over the same period last year.

However, the scale and business mode of BELLE's international sports business may be the two key factors affecting the judgment of capital market.

Whether the international brands Nike and Adidas, or Hongkong listed domestic brands Lining and Anta, their market capitalization exceeds the valuation ceiling given by BELLE international sports business - $25 billion, of which, by the end of June 6th, the market value of Lining's HK $30 billion 986 million is most likely to be overtaken by BELLE.

And the more critical is the business mode, BELLE sports business is the Distribution Agency mode, including Nike, Adidas, Puma and other brands, almost no brand control, to win volume.

Over the past few fiscal years, the average gross profit margin of BELLE's footwear products has exceeded 65%, while the gross profit margin of sportswear business is less than 5%.