Belle Fashion Officially Submitted IPO Application To Hkex

On March 16, Belle fashion group (hereinafter referred to as "Belle fashion") formally submitted an IPO application to the Hong Kong stock exchange. Bank of America Securities and Morgan Stanley were the co sponsors of belle fashion IPO.

As a large fashion industry group in China that has been deeply involved in the industry chain for decades, the prospectus shows that the brand matrix of belle fashion includes 20 private brands and cooperative brands, covering women's shoes, men's shoes, clothing, bags and children's shoes. According to frost Sullivan's data, with retail sales statistics in 2020, Belle fashion ranks first in China's fashion shoes market with 11.2% market share.

01 steady growth of various financial indicators and achievements in five-year transformation

As the leader of China's fashion shoes and clothing, Belle's fashion performance has maintained steady growth in the current year. According to the prospectus, the operating revenue of belle fashion was 20.1 billion yuan (RMB, the same below) and 21.7 billion yuan as of February 29, 2020 (fy19 / 20) and February 28, 2021 (fiscal year 20 / 21), respectively, with an increase rate of 8.1%.

Bailey fashion shoes business is the stable basic plate of its development. In the 19 / 20 and 20 / 21 fiscal years, the company's footwear business revenue was 17.7 billion yuan and 18.8 billion yuan, respectively, with an increase rate of 6.3%. As of November 30, 2021, the company's footwear business revenue has reached 15.3 billion yuan, an increase of 10.1% compared with the same period in 2020.

In terms of clothing business, from the perspective of revenue growth, the revenue of this business segment increased by 21.1% from 2.5 billion yuan in the 19 / 20 fiscal year to 3 billion yuan in the 20 / 21 fiscal year. The clothing business is expanding substantially, and the "second curve" of growth has been formed. By the end of November 30, 2021, the company achieved clothing revenue of 2.4 billion yuan, an increase of 17.3% compared with the same period in 2020.

Cheng Weixiong, an independent analyst of shoes and clothing industry, believes that China's fashion fashion commodity track is ushering in a period of rapid development, in which Belle fashion has been leading the development of China's fashion footwear and clothing industry for many years. Since taking the initiative to choose privatization in 2017, the first five-year transformation has achieved initial results, which has become a new opportunity for Belle fashion to achieve leapfrog development. The next five years will be a new period of strategic opportunities for Belle fashion.

02 digital iteration core competitiveness leading industry trend

According to frost Sullivan's data, the total retail sales of China's fashion shoes market will temporarily drop to 186.7 billion yuan in 2020 due to the impact of the new crown epidemic. Belle fashion still maintained a steady growth, showing strong business resilience. According to the prospectus, the net profit of belle fashion increased from 1.7 billion yuan in the 19 / 20 fiscal year to 2.6 billion yuan in the 20 / 21 financial year.

During the epidemic period, it took Baili fashion only half a year to walk out of the "smile curve", from the beginning of the epidemic in 2020, when the sales volume dropped by 70% to the year-on-year growth of scale and profit. Cheng Weixiong said that since taking the initiative to privatize in 2017, Belle fashion, with the help of external forces and under the joint effect of internal and external forces, has completed the elephant turn through comprehensive digital transformation and iteration of core competitiveness, which not only brings Belle fashion the first mover advantage, but also leads the digital intelligence trend of the whole industry.

Belle fashion provides a digital example for the future development of China's fashion shoes and clothing industry, and will become an important force to leverage the rapid growth of China's fashion trend market. According to frost Sullivan, the retail value of China's fashion trend market is expected to grow from 1.6 trillion yuan in 2020 to 1.9 trillion yuan in 2025, with a compound annual growth rate of 3.5%. Under the background of broad market space and strong consumer demand, Belle fashion will find more optimal solutions for Chinese people on "what to wear" and "how to wear".

According to the prospectus, Belle fashion will continue to expand its brand portfolio and product categories, continue to expand and upgrade its Omni channel network, continuously upgrade its industry-leading vertical integration value chain, empower its upstream partners with lean manufacturing management, strengthen its investment in science and technology, push forward digital intelligence transformation, and create the most dynamic brand growth platform, Create an open fashion ecosystem together.