Menswear Brand Busen Has Raised 394 Million Of Public Funds, Expanding Its Construction Business.

　　 Zhejiang Busen apparel Limited by Share Ltd recently announced that the company has been approved by the China Securities Regulatory Commission, and has issued 23 million 340 thousand shares of RMB common stock (A shares) to the public, with a face value of 1 yuan per share, a price of 16.88 yuan per share, and a total fund raising of 393 million 979 thousand and 200 yuan, with net proceeds of 360 million 821 thousand and 860 yuan after deducting the issuance cost of 33 million 157 thousand and 340 yuan. The fund-raising funds are mainly invested in terminal channels to expand the "comfortable life concept store" coverage area.

According to Busen shares previously published "IPO" shares (A share) prospectus, the company originally planned to build 26 comfortable life concept stores and direct flagship stores in 26 cities across the country in recent years. In the next few years, Beijing, Hangzhou, Shenyang, Guiyang, Lanzhou, Hefei and other key strategic cities, as well as Zhejiang's Jinhua, Jiaxing, Taizhou and Taizhou, will be opening new "comfortable life concept stores" in the cities such as, ",", ",", "and". Through the establishment of these outlets, we hope to fully display product and business philosophy, expand brand influence, rely on production bases to consolidate existing market share, and develop subordinate affiliates.

But in the past two years, the marketing network of Busen shares has developed more rapidly. The existing network has partially covered the cities opened by the above plans, and the domestic consumer market and the commercial real estate environment have also undergone great changes. Therefore, in the next few years, Busen shares will adjust the network on the basis of the original plan of the 26 regions, and choose new cities with important strategic significance in the whole country to expand the direct network. The investment amount of the marketing network construction project will not exceed the total investment amount of the original project plan, and the total number of 26 direct investment shops and the total investment area will not change.

In addition to increasing the construction of terminal outlets, Busen shares have been doing so for two years.

In April, the company announced that it would invest 20 million yuan in its own capital to set up a wholly owned subsidiary, Hangzhou Ming Plath Garments Co., Ltd., and its wholly owned subsidiary, Tongling Busen Clothing Co., Ltd. will also invest in the construction of the annual production line of 400 thousand middle and high grade jacket production lines.

Busen shares implemented the project through the way of increasing capital to Tongling Busen Clothing Co., Ltd. the total capital increased by 53 million 650 thousand yuan.

From the end of 2010, the company expanded its new product line, adding "green label" series designed for men aged 25 to -35 and "Ming" series for the 30 year old -40 age group. Among them, the green label has continued the original Busen "black label" series of cheap fashion products positioning, but the brand grades have improved; and the "Ming" series is the company's main product series extended to high priced products, and the product design style is dominated by English style.

Haitong Securities believes that the green label products will open 80 stores by the end of 2011, and the sales revenue of Ming Ming series is expected to reach 2-3 billion yuan after maturity. The launch of the new product range has made Busen share products expand to a larger extent in terms of price levels and consumer groups. Through product segmentation, the positioning of the terminal market is more precise, which helps the company to dig deeper into the market segments.

Guoxin Securities believes that Busen shares first put forward the concept of "comfortable business men's clothing" in the industry, focusing on cotton, linen, wool and other natural environmental protection fabrics. The growth of the company is relatively stable, with two or three line cities as the main market, and the key areas are East China and Central South China.

The 2010 annual report shows that as of December 31, 2010, the total operating income of Busen shares was 534 million 549 thousand and 800 yuan, operating profit was 150 million 645 thousand and 100 yuan, and gross profit margin was 28.18%. Among them, the shirt business income is 128 million 66 thousand and 700 yuan, the profit is 34 million 501 thousand and 400 yuan, the gross profit margin is 26.94%; the western-style clothing business income 109 million 230 thousand yuan, the profit 34 million 893 thousand and 600 yuan, the gross profit margin 31.94%; the trouser business income 116 million 580 thousand yuan; the operating profit 28 million 486 thousand and 700 yuan, the gross profit rate 24.44%; the jacket business income 96 million 736 thousand and 500 yuan, the profit 27 million 960 thousand and 200 yuan, the gross profit margin is 27 million 960 thousand and 200. In addition, the export business, which accounts for 14.81% of the company's main business revenue, has a revenue of 79 million 606 thousand and 400 yuan.

It can be found that Busen's shirts, Western-style clothes and trousers are the dominant categories, with the highest sales of shirts and the highest gross profit rates for Western-style clothes, while the overall sales volume of jackets needs to be improved, but the gross profit margin is higher. The three products of shirts, Western-style clothes and trousers are also identified as national inspection free products.

According to the semi annual report released recently, the company achieved 257 million yuan in the first half of 2011, operating profit of 21 million 845 thousand and 265 yuan, total profit of 22 million 178 thousand and 87 yuan, net profit of 16 million 895 thousand and 328 yuan, an increase of 26.99%, 3.86%, 3.84% and 10.22% compared with the same period last year. The main reason is that as the company's market expanding efforts have intensified, the network construction has shown signs of success, and the company's brand image has further improved, prompting the company's performance to grow steadily.

As of December 31, 2010, Busen clothing has 11 Direct stores and counters, 752 franchisees and two cabinets.