The Road To IPO Is Twists And Turns. Sanfo Outdoor Is Finally Coming Public.

At present, China's outdoor industry is facing a decline in growth rate as a whole.

According to the COCA statistics of China Textile Association, from 2000 to 2013, the total retail sales of outdoor products in China increased at an average annual rate of 45.62%, but the high growth rate has ended.

Sanfo's outdoors Sanfo will finally be on the market.

The company, which has the largest outdoor club in the country, will become the first listed company specializing in outdoor goods retail in the domestic capital market.

In November 20th, 10 companies and their Underwriters who had been postponed by the shock of the stock market in November 20th will negotiate with the Shanghai and Shenzhen Stock Exchange to confirm the issuance schedule, including the outdoors listed on the SME Board of Shenzhen Stock Exchange.

Sanfo outdoors has the smallest number of plates in the 10 new shares, and only 6 million 800 thousand shares are issued online. The total amount of the public offering is no more than 17 million shares, accounting for no less than 25% of the total share capital issued. The issue price of the initial public offering of A shares is determined to be 9.42 yuan / share, all of which are new shares issued.

The sporting goods retail companies is one of the first outdoor chain stores in China. It is also one of the largest retail outlets in China.

In addition to Sanfo outdoor, China's outdoor products retailers also have Xi'an green ants, Shenzhen fire fox, Hangzhou Jiahe outdoor, Hangzhou snow outdoor, but they are not large.

Although Sanfo outdoor is a retailer, it is in the downstream of the industrial chain, and has cooperation with upstream suppliers, brands and agents, but there is also a certain competition relationship with the self built channel brands such as Pathfinder.

In addition, Sanfo's main outdoor competitors include other outdoor supplies, such as Decathlon.

As of June this year, Sanfo outdoor has 37 stores, selling outdoor clothing, outdoor shoes and socks and outdoor equipment three major categories of more than 370 brands, mainly high end brands, including ARC TERYX, North (The North Face), Keller stone (Kailas), Columbia (Columbia) and Northland (Northland).

In recent years, Sanfo outdoor professional outdoor stores as the basic bid status, supplemented by shopping malls, and integration with e-commerce channels.

Outdoor products

The concentration of the industry is very low. The total sales of professional outdoor stores in 2013 amounted to 3 billion 670 million yuan, of which Sanfo outdoor was the most professional retailer, and the total sales volume in 2013 was 289 million yuan, accounting for 7.87% of the total sales of professional outdoor stores.

At present, Sanfo's outdoor profit mode mainly includes the sale of goods and the charging of club activities, among which the difference between the purchase and sale of goods is the main source of profits.

The prospectus shows that from 2012 to 2014, the net profit of Sanfo's outdoor attribution to shareholders of the parent company was 27 million 98 thousand yuan, 32 million 203 thousand yuan and 27 million 504 thousand yuan respectively. In 2015, it was 8 million 952 thousand and 500 yuan in 1-6 months, a 14.59% decrease in 2014 compared with the same period last year, and 7.29% in 2015 2015.

Sanfo outdoor even said that the company's performance in the future is still downside risk, and it is possible that the operating profit of the listed company will drop more than 50% over the previous year.

Sanfo outdoor said that this is because the growth of the retail industry is slowing down, the professional outdoor retail channel is adversely affected by the overall macroeconomic situation, and the impact from the electricity suppliers and shopping malls. On the other hand, the company is increasing investment in its own e-commerce channels, but these investments can not bring the net profit contribution in the short term, and a large number of expenses will be increased after the listing.

After the completion of the financing,

We plan to invest 157 million yuan to expand the marketing network.

Sanfo outdoor President Zhang Hengceng said that in order to cope with the tight financial situation, Sanfo's outdoor shop strategy should be adjusted, and small shops should be opened in the core mature business circle with high passenger flow but high rent, focusing on revenue distribution.

The average net profit growth of Pathfinder belonging to parent company in 2009 -2013 is about 59%, compared with that in 2014.

Growth is only around 18%, and net profit is expected to increase by only 1.5% in the first half of 2015.

In the foreseeable growth rate, the Pathfinder proposed in 2013 to "outdoor travel integrated service platform" pformation, do not want to be a single outdoor products manufacturer.

However, Sanfo outdoor said that the statistics of its club members showed that over half of the outdoor sports enthusiasts were concentrated in the age of 26-35. With the improvement of the consumption level of these people and the improvement of the overall outdoor consumption concept, the consumption scale of the outdoor sports market will be further increased.

With the optimistic expectation of Beijing and Zhangjiakou bidding for the Winter Olympic Games, there is great potential for the outdoor sports market in the future.

But the relatively low end of the outdoor sector seems to be growing faster.

Unlike Sanfo outdoor focused high-end outdoor, Decathlon provides entry-level rather than event level products, mainly for beginners instead of enthusiasts. In 2010 -2015, the company added about 10 stores annually in the Chinese market, and plans to have 500 stores in the country by 2020.