Listing Brings New Opportunities For Development To Jinjiang Shoe Enterprises

In June 3rd, XTEP International (1368.HK) was officially listed on the stock exchange of Hongkong. It became the third Jinjiang sports shoes manufacturer to succeed overseas (IPO) after ChinaHongxBR9.SI and Anta sports (2020.HK).

It is reported that XTEP international listed a total of 550 million shares, raising about HK $2 billion 230 million, which not only provides ample funds for XTEP's long-term international development, domestic and foreign acquisitions and new projects investment, but also marks the establishment of a modern enterprise management system, highlighting XTEP's international determination to grow into a world brand.

To reduce the OEM ratio of enterprises, many sports shoes manufacturers in Jinjiang started from the OEM (OEM) business. With the advantage of low cost of domestic labor and raw materials, many enterprises made "the first pot of gold".

XTEP international is no exception.

A senior official in the sporting goods industry revealed that XTEP's actual controller Ding Shuibo was only 17 when he started his business, when he joined two friends to raise 1500 yuan.

However, as the demand for domestic sporting goods continues to expand, XTEP also starts to walk with "two legs", and at the same time doing well in the international market, it begins to attack the domestic market.

XTEP uses international experience to solve R & D, modernize its own factories to solve production problems, use contacts to solve distribution channels, invite celebrities to become image spokesmen, and promote their brand by way of entertainment marketing. This differentiated brand promotion strategy is sought after by the market.

Of course, XTEP is a sports brand after all. It can not be completely divorced from sports marketing.

In October 2004, XTEP formally signed up to become the only partner of the sports industry in the Tenth National Games, while sponsoring the Jiangsu, the PLA and other delegations to receive the award equipment.

Thanks to the excellent performance at the ten sports meeting, XTEP's brand influence in the industry and sports circles has been greatly improved, and officially entered the first group of sporting goods in China.

At present, XTEP international has developed, produced and sold sports brand goods, and has the Chinese franchise rights of XTEP, Colin brand and Disney sports series brand.

Last year, XTEP international sales amounted to 1 billion 360 million yuan.

However, Ding Shuibo said recently that XTEP international will further increase its own brand development in the future, and gradually reduce the proportion of OEM in the company's revenue. "2007 is 7.8%, and this year's target control is less than 2%, and it will drop to about 1% in the future."

Ding Shuibo said.

The acquisition of brands and new projects mentioned the benefits of listing to XTEP international. One industry believes that on the one hand, XTEP initially adopted a family management approach, which has gradually changed in recent years. Listing will help enterprises establish a modern enterprise management system in an all-round way. On the other hand, the funds raised are conducive to the sustainable development of enterprises in the future, and the speed of XTEP's international growth to the world brand will be accelerated through the acquisition of domestic and overseas products.

Since 2008, due to the continued depreciation of the US dollar, the prices of raw materials such as oil have continued to rise, and many industries, including the sporting goods manufacturing industry, have been hit.

CCTV's economic channel survey also showed that many small and medium shoemaking enterprises in Jinjiang have varying degrees of losses, and the industry shuffle is inevitable.

XTEP international is successful at IPO at this time and will have enough capital to make acquisitions.

XTEP international insiders told reporters that about 24% of the funds raised will be invested in the acquisition of brand and new projects. About 22% will be involved in media advertising and brand promotion activities, about 17% will be used to expand and improve distribution networks, and about 19% will be invested in the expansion of garment production plants.

"The acquisition brand takes outdoor sports brand, children's shoes and so on as targets, and both domestic and foreign brands will consider it."

This person said, "this year XTEP's investment in Olympic marketing will not be less than two hundred million yuan."

Related link Jinjiang shoe enterprises overseas listing roadmap hongxinerke dare to "first eat crab", in Singapore in November 14, 2005 "low-key" listing, the stock price of 0.4 new yuan per share, raised 4800 new coins (RMB nearly two hundred million yuan).

In the past 52 weeks, the stock price has reached a maximum of 1.45 new yuan, which is more than 3 times the bid price, but with the recent deep adjustment in the international stock market, it closed at 0.475 new yuan in June 20th.

In July 11, 2007, Anta sports was successfully listed in Hongkong, offering 600 million shares, offering HK $5.28 per share and financing HK $3 billion 168 million. Not only did it record the largest number of funds raised by overseas companies in Quanzhou, it also created the largest scale of China's local sports brands in overseas capital markets.

The highest price of Anta sports was HK $12 per share, and its closing price was HK $6.71 in June 20th.

And after the XTEP international listing, PEAK, Jordan sports, 361 degrees and so on Jinjiang footwear sports brand enterprises also entered the countdown to the listing, "Jinjiang shoe enterprise plate" is ready to come out.