Underwear Leader Love Shares Sprint IPO! 700 Million Of The Fund-Raising Will Also Take Vietnam To Build Nearly 20 Thousand Bases.

The A share market will soon usher in another famous local underwear brand.

The Limited by Share Ltd (hereinafter referred to as "love shares") has recently disclosed the love shares prospectus, which is no less than 40 million shares issued on the main board, accounting for no less than 10% of the total share capital issued after the issuance of the shares, and 761 million yuan for the fund-raising fund. It is mainly used for marketing network construction, information system construction, and Vietnam production base construction. Eye.

Among them:

1, marketing network construction project

Aiming to build 362 new terminal outlets in main cities of 3 provinces and cities in China in the past 362 years, we will optimize and upgrade the existing 576 direct terminal terminals through the construction projects of admiring shares and its subsidiaries, Beijing Adam clothing and Chongqing Ai Mei investment marketing network. After the completion of the project, the company's retail network will be further consolidated and moderately expanded, and the terminal visual image can be further upgraded to meet consumers' continuous shopping experience needs.

The total investment of the project is 439 million 901 thousand and 500 yuan. According to the existing retail network and the future development direction, we plan to build 362 direct terminals in seven regions including East China, North China, central China, Northwest China, Southwest China, Northeast China and Southern China. At the same time, the company will also optimize and upgrade some of the existing stores in the seven regions, and plans to upgrade 576 existing terminals.

2. Information system construction project

Adam shares intends to implement the information system construction project through the AI shares. Its contents mainly include the business middle platform, the data platform, the big data platform, the intelligent marketing project, the upgrading of the Group official website matrix, the upgrading and transformation of the marketing management business system, the upgrading of the product realization business system, and the implementation of the sub project of the group management and control business system upgrading and transformation. Through the establishment and upgrading of the above systems, the company can eliminate barriers to data interaction among different information systems through unified data structures, build enterprise computing centers, and provide scientific and intelligent early warning, forecasting, analysis and decision information by using various data models to enhance company operation and management level.

The total investment is 151 million 531 thousand and 600 yuan, and the construction period is 36 months. The site of the construction project is located in the Chaoyang District love garden, Beijing.

3. Invest and build production bases in Vietnam.

Adam shares intends to invest in new production bases in Longshou Township, nenze Township, nenze County, Vietnam, through its subsidiaries, and uses Vietnam's production advantages to lay out overseas production bases to further enhance production capacity. The company will invest 357 million 653 thousand and 200 yuan (US $50 million), and equipped with automatic production equipment, logistics services and other supporting facilities according to production planning. The fund will be invested 169 million 815 thousand and 500 yuan. The project will add 6 million 192 thousand and 600 pieces of clothing to the postnatal year, and the construction period will be 36 months. The internal rate of return after all investment tax is 20.19%, and the investment recovery period (after tax) is 7.01 years (including construction period).

There are 4 production bases in Beijing, Suzhou, Xuzhou and Xiping respectively. In 2019, the capacity of the company's own base was 11 million 55 thousand and 700, the capacity utilization rate was 105.96%, and it was at full load. In 2019, the total sales volume of the company's main products totaled 21 million 21 thousand and 900. Due to the limited production capacity of its own production base, about 50% of the company's products were customized to the manufacturers or commissioned by the manufacturers to complete the production. Therefore, the company urgently needs to solve its own capacity shortage situation, greatly improve the production capacity of its own production base, and reduce the proportion of finished products customization or the processing of finished products by the foreign manufacturers. At the same time, the labor cost of Vietnam is lower than that of the domestic market, and has certain cost advantages, and its political situation is stable, and its business environment is relatively healthy. It is a suitable target country for foreign investment.

The project is located at No. 85 and No. 73 plots of Longshou Township, Nen Ze county, Vietnam. The plot area is 16681.2 square meters and 3411 square meters respectively. The company has signed a land lease contract for 35.5 years with the Xigong building materials and investment construction Limited by Share Ltd based on local laws and regulations, and has obtained the land use warrant in block 85, while the relevant use warrants in block 73 are being processed.

Public information shows that AI shares have started with women's underwear. The current product portfolio has gradually extended to warm clothing, household clothes, socks, home textiles and other categories. The company was founded in 1993 with a registered capital of 360 million yuan, and the controlling shareholder and the real controller are Zhang Rongming.

Since the establishment of A (MER) brand in 1993, the company's brand portfolio has become increasingly rich, and many distinctive brands with different orientation have been born around adoration. At present, A (MER), A (mermen), love s (IMI), love children (A merkids), Mu Lan (MODELAB) and Lanka (LaClover) are the main brands that have formed a certain scale. A mersports and Huxi are the brands with potential growth potential. In addition to the above brands, the company's brand portfolio also includes A merhome, A workshop (A merstudio), beloved (Shinelove), Huangjin (EMPERORIENT), and Nature (sgift).

After many years of deep plowing of domestic underwear market, Adam shares ranked first in many brands. There are many main brands such as admirers, admirers, love beauty, love children, Mu Lan and Lanka, etc. From 2017 to 2019, the top three brands of Adam, Lanka and Mr. Adam were ranked first in the industry of women's underwear, high-end underwear and men's underwear market.

The prospectus showed that from 2017 to 2019, the shares of the company were respectively 2 billion 947 million yuan, 3 billion 119 million yuan and 3 billion 318 million yuan. The net profit from the non recurring gains and losses was 519 million yuan, 382 million yuan and 313 million yuan respectively. During the same period, the gross profit margin of the main business of the company was 73.74%, 72.29% and 70.73% respectively.

As for net profit decline, Adam shares explained that since 2018, the company has gradually upgraded its brand, and its brand image and terminal image have been updated. Meanwhile, the company's investment in brand promotion, channel construction, product development and other aspects has increased, and the company's inter annual cost level has shown an upward trend in the reporting period, making the company's net profit level decline by stages.

Due to the great impact of the 2020 epidemic, the overall performance of the company after its balance sheet was also affected in the short term. In the first quarter of 2020, the unaudited business income of the company was 801 million yuan, down 10.27% from the same period in 2019, and the net profit attributable to the parent company was 83 million 529 thousand and 800 yuan, down 40.18% compared with the same period in 2019.

During the epidemic period, the company continued to exert its efforts on the Internet. The cloud customer service tool developed by the company in 2019 accelerated online in February 2020. It can empower the stores under the offline store to enable members to manage and operate the mobile phone end, and promote the consumption behavior of members in the official mall of the company, so that the company's offline stores can still achieve business performance during the closing period. With the help of the cloud customer service tool and the new retail system built by WeChat ecosystem, the company has slowed down the impact of the epidemic on offline retailing to a certain extent through the flexible way of public number interaction, online live broadcast, the operation of the club members' Club procedures, and the distribution of small businesses in the official mall.

In addition, through the acceleration of new product hatching and the successful launch of A merNYC new underwear on the Internet during the epidemic period, AI shares further slowed down the downward pressure on retail sales under the line. In February 2020, the company launched online A merNYC brand new lingerie on Tmall, official mall and other online channels. In February 27, 2020, the company achieved a retail sales of 6 million 680 thousand and 400 yuan per day. Compared with the company's A (MER A) main brand products, the company incubated A merNYC series products also praise free, honest and independent modern women's attitude towards life. The product design is more internationalized, younger and more fashionable, and adopts a new brand spokesperson, Xin Zhilei. The company operates new product lines through online channels, to a certain extent, to mitigate the impact of the epidemic on offline retail entities.

In terms of sales, AI shares are mainly direct channel. As of December 31, 2019, the retail network of EMU shares was composed of 2414 offline sales terminals and online channels dominated by Tmall and vip.com, with 1933 terminals under the line, covering 31 provinces, autonomous regions and municipalities directly under the central government, and have been stationed in landmark commercial areas such as Singapore, Macao, Kampuchea and Dubai.