Intent To Return To A Shares, PEAK'S IPO Story About Where?

"A lot of products! Lots of benefits! Pay attention to my personal voice account. We will be there. In April 24th, Fujian PEAK group CEO Xu Zhihua opened the first show of personal Tmall live. In the 1 hours of live broadcast, she analyzed the product performance by affinity. Before the end of the live broadcast, Xu Zhihua did not forget to make a preannouncement for his next live broadcast.

As the first domestic sports brand to open live goods with CEO, Xu Zhihua had already "touches the net" - opened personal vibrato, micro-blog account, regularly released products information, registered as B station UP owner (video blogger), created video products "CEO Talk", set up "gambling agreement" with fans, lost weight and sent 1000 pairs of running shoes.

So hard, perhaps not only for the production of voice, but also to honor PEAK's "listing of the agreement". On May 19th, Xu Jingnan, chairman of PEAK group, said in an interview with the media that PEAK is actively preparing to return to A shares, and intends to make a successful listing in A shares in three years.

Since delisting from the Hong Kong stock market in 2016, PEAK has repeatedly called the declaration of "return to A shares", but the listing process has always been "mysterious". From PEAK products in recent years, many times to brush the shoes circle, to the CEO circle drainage, and then to the chairman announced that three years time to return to A shares, so many, not only let people ask: PEAK's listing story about where?

Listing is not smooth.

PEAK sports was founded in 1989 and landed on Hong Kong stock in September 2009. It has gone through two IPO failures. On the first day of listing, PEAK fell below HK $4.1 in Hong Kong stock exchange.

Data show that since the PEAK sports landed on the Hongkong stock exchange in 2009, the highest price was HK $6.95 per share in October 14, 2010, the lowest price being HK $1.1 per share in August 3, 2012. In 2016, the company's share price remained at about 2 Hong Kong dollars. At the closing price of May 20, 2016, PEAK's P / E is only 9.14 times. In the A share market, the price is 23.22 yuan per day, and the earnings per share of the company is 0.54 yuan in 2015. The price earnings ratio is 43 times.

Due to pressure of performance and dissatisfaction with low valuation, PEAK sports issued a notice of suspension in May 2016, issued a formal announcement of privatization in July, and formally revoked its listing status in the HKEx in November.

Xu Zhihua has repeatedly said in a media interview that the reason why PEAK chose to withdraw from the market was "the company's share price was seriously underestimated".

Only three months after the delisting, PEAK held a "return A share development forum" in Quanzhou, Fujian, and announced that it would return to A shares. At the event, Xu Jingnan reiterated the reasons for the delisting: "Hongkong's capital market is hard for us to create international brands to create benefits."

Behind PEAK's planned A share listing is the wave of "back to A" launched by many Chinese funded Hong Kong stocks in recent years.

Hongkong has statistics on foreign investment banks, and the return of Hong Kong stocks to the mainland has become a trend. Under the background that the domestic sports industry is developing opportunities, sports concept stocks are obviously more popular in A shares. Compared with the Hong Kong stock market, the current price earnings ratio of the local brand, A, is about 40 times, while the Anta with the best performance and the largest revenue in the local brand is only about 30 times the Hong Kong stock market.

PEAK naturally hopes to catch up with the east wind of policy and capital and seek to land A shares, bringing more development space and imagination to it.

However, PEAK's listing may not be smooth. At present, the A share supervision policy has put forward more stringent requirements for backdoor and IPO, and the passing rate of IPO in the future is lower than before or new normal. Under this background, the willingness and cycle of enterprises' declaration will be extended correspondingly, and the speed of meeting will be slowed down correspondingly.

Song Qinghui, the founder of Qing Hui think tank, thinks that the "Hong Kong stock" has no "improvement" and that the return of A shares is not a better option for Chinese investors in Hong Kong stock market in recent years. No matter where the enterprises are listed, they need to practise their internal skills first.

Explosion and exposure

How does PEAK write its own listing story? This can be seen from the products released by companies in recent years.

In recent years, high-tech sports shoes have been favored by consumers. The core technology of domestic sports shoes has risen vigorously, and PEAK has launched a series of "black technology" products such as state technology.

Xu Zhihua said that the future sports brand will be more competitive in technology and innovation, and PEAK's R & D will mainly invest in 3D printing and adaptive material technology.

The state pole series is one of the achievements of PEAK's R & D investment. In 2016, PEAK and the scientific research team of Xi'an University of technology jointly established the polymer elastomer research and development team, jointly developed the "P4U+EVA" intelligent shoe material elastomer, and named it PEAK extreme technology.

The polar series was first produced in the 12 moon phase in 2018. At that time, PEAK's first running shoes, which used the technology of "state of the art", released the first batch of limited running shoes in 51 seconds. PEAK data show that over the past year, the total sales volume of the technology pole series shoes has exceeded 2 million 500 thousand pairs, and the sales volume has reached 1 billion yuan. In April this year, the state extreme technology second generation flagship state 2 released, opened for 12 hours sales volume has broken through 10 thousand pairs.

Apart from technological innovation, PEAK is also committed to creating greater exposure through marketing innovation.

After the release of pole 2, Xu Zhihua quickly landed on the Tmall live room to bring goods to the product, and sold 5000 pairs in 27 minutes, with a total sales of over 5 million yuan. In addition, the state of pole 2 also boarded the live room of "Queen of goods".

In fact, since PEAK's "polar" 1 was launched in 2018, PEAK gave up the line of stars and celebrity spokesmen, and chose to interact with consumers in Tmall, jitter, fast hand, B station and other platforms. In the new consumption era of "Z generation" as the main force, PEAK is actively exploring new marketing mode of interaction and communication with young consumers in the face of new crowds, new demands and new directions. PEAK, which has been classified as "traditional enterprise", is stepping up its transformation and upgrading to a technological innovation oriented Internet company.

But as a supplement to the channel under the epidemic, can the live broadcast really tell the sales story? This undoubtedly needs to be revisited after the outbreak.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., believes that the CEO live broadcast with goods as a channel supplement during the epidemic season can not last long, and still needs offline as the main source of revenue. In 2012, PEAK put forward the goal of achieving sales of ten billion yuan in ten years. In order to achieve this goal, the company needs to continue to improve its supply chain, capacity, design, technology and so on.

In the industry view, Nike, Adidas and other brands have been developing new technologies in recent years, and rely on the accumulation of brands and the speculation of buyers to become the main force of shoe circles. As a latecomer, PEAK is not enough to impress more consumers by relying on value, relying on marketing and relying on quantity. In PEAK Tmall official flagship store comment area and fans' message area, we can find that an important attitude of consumers to buy PEAK is to support domestic products. To some extent, the hot selling of PEAK is borrowed from the trend of "national tide".

Multi brand combination

Another way for PEAK to list is probably multi brand strategy.

Xu Zhihua said in an interview with the media: "multi brand strategy is one of our options. PEAK will definitely become a diversified group in the future. Capital acquisition is also a way of listing, and there will be some opportunities in the future.

Subsequently, PEAK completed three brand takeover actions in half a year.

In December 2017, PEAK sports subsidiary Quanzhou Dafa Real Estate Investment Co., Ltd. succeeded in winning the banner of King banner (China) textile and apparel Co., Ltd., and the bankrupt flag King brand continued to retain and operate through reorganization. Founded in 1988, Wang was a well-known brand of jeans in China.

In the same month, PEAK longitudinal Investment Co., Ltd., a subsidiary of PEAK, invested 64 million 500 thousand yuan to reorganize the brand of "tick" children's clothing, which is a well-known brand of children's clothing in China.

Then, PEAK fully bought outdoor sports brand OZARK, and entered the field of outdoor sports. According to public information, OZARK is an international outdoor sports brand operated by the Swiss Muller family for more than 20 years, and entered the Chinese market in 1996.

Although Xu Zhihua has said that the non sporting goods sector does not participate in PEAK sports return to A shares, ready to further integrate the listing. But the outside world has made different interpretations of PEAK's investment layout. Song Qinghui, founder of Qing Hui think tank, said, "there is a certain connection between the above investment acquisitions and its listing targets. Because by acquiring some brands, they can gradually turn them into "hematopoiesis" business and enhance the company's sustainable development capability. And whether the company has the capability of sustainable development is a necessary condition for successful listing.

At the same time, PEAK's efforts in children's wear and outdoor areas are similar to those of Anta and 361 degree brands.

Anta sports data show that Anta children's clothing has become Anta's business growth rate of second fast, in 2016, the market share also surpassed competitors. Similarly, in children's clothing market, there is a good performance of 361 degrees. According to the information released, 361 degree children's wear has been profitable for 6 consecutive years since its inception. Last year, 361 degrees children's wear accounted for 17.7% of the group's turnover, an increase of 22.4% over the same period last year, and 997 million yuan of operating income.

Outdoor sports category is also Anta, 361 degrees and other brands in recent years, the field of strength.

In October 2017, Anta's subsidiary subsidiary ANKO and Korea's well-known outdoor brand Kolon Sport set up a joint venture. And 361 degrees as early as in 2013 and Finland high-end outdoor brand One Way Sport joint venture, to obtain greater China operation rights, products targeting high-end market.

Multi brand strategy is the main way for domestic sports brands to seize the market and tap the gold sports industry. This strategy can narrow the gap with international brands, and its strategic significance is obvious.

But for PEAK, a key factor that can be listed is the development of its main business. Cheng Weixiong thought, "if an enterprise wants to get long-term development, the acquisition business must complement the existing business and differentiate and differentiate its brand. If the main business is done well, there will be more opportunities to return to A shares and develop effectively. If the transformation of their main business is not in place, then the M & a business is only for consolidated statements, which is of no great significance.