Child King, A Retail Brand With A Market Value Of More Than 16 Billion Yuan, Plans To List On The Gem

Recently, the official website of Shenzhen Stock Exchange disclosed the prospectus of "child king children's products Co., Ltd." (hereinafter referred to as "child king"), according to the announcement, the retail brand of mother, baby and child, child Wang plans to be listed on the gem, and plans to raise 2.449 billion yuan through this listing. The funds are mainly used for the construction of Omni channel retail terminal, Omni channel digital platform and omni channel logistics To build and replenish working capital.

According to the public information, chihuawang is the retail brand of mother, baby and child, which was established in 2009. It is mainly engaged in the retail and value-added services of maternal, infant and child products. Its products involve many categories, such as imported milk powder, diapers, children's toys, clothing, etc., and the products are mainly medium and high-end brands.

Once child king was the "first share" worthy of domestic maternal and infant retail industry. The company was listed on the new third board on December 9, 2016, and its market value exceeded 14 billion yuan on the day of listing, becoming the first enterprise with a market value of more than 10 billion yuan in the field of maternal and infant retail at that time.

In the first year after listing, the company turned losses into profits, with an estimated operating revenue of 5.97 billion yuan, an increase of 33.9%, and a net profit of 140 million yuan.

However, in the middle of March 2018, child Wang suddenly issued a notice saying: "in order to meet the needs of the company's business development and long-term development strategic planning in the capital market, it intends to apply for the termination of listing", and officially terminated the listing from the next month's 24, and delisted from the new third board. Before the delisting, its market value had been close to 16.7 billion yuan.

Some people in the industry believe that the reason why xiaoerwang withdrew from the market is that the new third board market has been cold for a long time, the trading volume is not high, and it is difficult for the company to refinance. Under various restrictions, it is better to switch to the gem for listing.

Although the child Wang from the new third board delisted, but its development is still strong. During the period from 2017 to 2019, its business income was 5.235 billion yuan, 6.671 billion yuan and 8.243 billion yuan respectively, and the net profit was 93.79 million yuan, 276 million yuan and 377 million yuan, respectively, maintaining a stable growth level. Among them, the main business maternal and child sales is the company's main source of income.

For a long time, the "membership system + single customer economy + digital store + big store" mode has always been adopted by "child king". The "membership system" is a major feature of child king. Even in the prospectus, it has positioned itself as a serious member economy company.

According to the data, by the end of 2019, the number of child king's Omni channel members has reached 33 million, and the number of active users is as high as 10 million. The income contributed by members accounts for 98% of the total sales revenue of child king's mother and baby goods.

It is also because of the emphasis on offline interaction and service, child king currently mainly focuses on offline development. By the end of 2019, child king has 352 physical stores in 19 provinces (cities) and 120 cities in China, and has added 94 physical stores in 19 years, more than the sum of the previous two years.

At present, the most representative retail brand of A-share listing is baby care room. As of Monday, July 13, the price of baby care room was 35 yuan per share, with a market value of about 5 billion yuan. According to the market value of nearly 16.7 billion yuan before the delisting of child Wang, the successful listing of child Wang on the GEM may catch up and become the first mother and baby retail brand with the highest market value in China.