"Shoe King" BELLE Will Be In The Hong Kong Stock Market Or Will Be Privatized.

Listing ten years, a generation of "shoe king" BELLE or will be in the Hong Kong stock market bleak curtain call.

"Ten years ago, when BELLE was listed on Hong Kong stock market, the amount of fund raised at that time exceeded that of ICBC, which made me very excited.

After all these years, luckily I didn't get carried away, or I will be ashamed now. "

Belle International Holdings Ltd (BELLE) chief executive Sheng Bai Jiao admitted at the May 16th performance press conference.

In April 28th, the company issued a notice at the HKEx that Yu Wu, a consortium of BELLE and its executive directors, will receive BELLE's issued shares of HK $6.3 per share.

If the offer is reached, BELLE will withdraw from the Hong Kong stock exchange with an estimated value of HK $53 billion 135 million, which is expected to create the highest amount of privatization pactions of listed companies over the years.

Before the delisting, BELLE handed over the last "pcript" is not satisfactory.

As of February 28th this year, the company's net profit in the 2016/17 fiscal year fell 18% to 2 billion 403 million yuan, the lowest since 2008.

BELLE was founded in 1992 and went public in 2007. Its market value exceeded HK $100 billion, becoming the largest footwear production and retail companies in China.

In recent years, BELLE has been actively looking for a pformation path in the face of the same store sales declining and staff costs continuing to rise.

Prior to this, vertical integration, from shoe design, production, logistics and terminal retail, to control the whole process, and more than two 000 self run shops all over the country, once made BELLE invincible.

But with the rapid rise of e-commerce channels, BELLE's core competitiveness has been constantly disrupted.

"Although we have a little understanding of the great changes in the market, we can not find specific paths, bound by vested interests, and dare not make drastic pformation.

Consumers' demand for cost effectiveness, convenience and personalization is constantly improving. Although we have been trying hard to change, we hope to adapt to the evolving channel mode and consumer behavior, but unfortunately, due to the lack of corresponding skills and resources, business pformation is not as desirable as it is. "

Express。

He continued to say that the company has predicted more than ten years ago that the sports and leisure market will explode in the future, and will enter the sports industry in 2002. The agency will sell front-line sports brands such as Nike and Adidas, as well as PUMA, Converse and other second-line sports brands.

According to the company's earnings report, BELLE's footwear, sports and apparel business showed a significant differentiation.

As of the end of February this year, sales of footwear business fell 10% to 18 billion 960 million yuan compared to the same period, compared with the same period, sales of sports and clothing business increased by 15.4% to 22 billion 747 million yuan in the same period.

At the same time, BELLE set up a self marketing online sales platform "excellent purchase" as early as 2011.

In this regard, Sheng Bai Jiao pointed out: "due to missing the time window, we did not find an innovation model that is different from the online platforms such as Tmall and Jingdong.

In view of the listed company holding excellent purchase, if the excessive purchase of excellent purchase will affect the performance of listed companies.

In addition, we lack the professional structure of the operation online platform.

Sheng Bai pepper said BELLE's excessive reliance on department stores channels, however, was on line.

It has not yet become a climate. "At present, 80% of the company's sales and 90% of its profits come from department stores, but sales of global department stores continue to decline, but we can't find the direction and method of pformation."

By the end of February this year, the total number of self operated retail outlets of BELLE group reached 20841, of which 20716 were located in the mainland, and the total number of employees reached 111 thousand and 700, and the proportion of staff costs to group income continued to increase to 17.8%.

Cheng also Xiao He, defeated Xiao He, the huge number of shops and employees hindered the pace of pformation of the company.

Sheng Bai Chai said frankly that the company is in urgent need of pformation, but the cost of pformation is that we must sacrifice short-term interests and introduce new funds, resources and talents to achieve breakthroughs through digital pformation. "Because of the listing status, we need to disclose operational data every quarter, which makes management have to pursue some short-term profit targets, and privatization can provide greater room for the pformation of the company."

According to BELLE's previously announced privatization proposal, the privatization price of HK $6.3 is 19.54% higher than that of the company's closing price of HK $5.27 per share in April 13th.

In contrast, Alibaba's privatization price for Yintai business was 42.26% higher than before the suspension.

When the price of privatization is too low, Sheng Bai Jiao said investors should not only compare the closing price before the closing price, but also compare the cognition of the market to the company.

"Trading price is reasonable for analysts in the past half year, the highest target price.

If we do not act again, the value will only get lower and lower. "

He said.

In fact,

In 2013, it broke through 17 Hong Kong dollars / share, but then failed. It once fell to the lowest level of HK $4, while turnover continued to shrink. In the past six months, the daily turnover was generally less than HK $100 million.

Therefore, whenever the Hang Seng company conducts quarterly reviews, market participants have listed BELLE as one of the potential stocks to be excluded from blue chips.

Nomura Securities released a report that BELLE's privatization price was only 20% higher than the price before the suspension. The recent case of privatization of consumer stocks was at least 25% premium, while BELLE had no surprises. However, the company's shareholders would still accept the privatization plan, because the mainland shoe industry generally faced difficulties, including threats from online shopping platforms and international brands.

Sheng Bai pepper revealed that if privatization is successful, he will stay in the company for two or three years and play a pitional role.

He also pointed out that even if privatization fails, the company will also be dominated by long-term interests in the future, not only focusing on short-term profit performance, nor will it publish quarterly data.

If the privatization scheme is approved by shareholders, after the delisting, the high leverage capital will become the largest shareholder of BELLE international, holding 56.81% of the shares; CDH investment will hold 12.06%; while the management of the prosperous, martial and other privatization proposals will hold 31.13%; the BELLE director and founder Deng Yao and Sheng Bai Jiao share 25.75% shares through their respective companies.

According to the Hongkong Securities Regulatory Commission's code of acquisition and merger of the company, in the general meeting of shareholders, the privatization proposal must have the right to vote at least 75% of the non interested shareholders attending the meeting (or delegated), and the 10% shareholders who must not exceed the voting rights may pass the resolution.

The deadline for privatization of BELLE is that before October 16th this year, the consortium made it clear that it would not raise the offer price, which means that once the proposal was rejected by shareholders, it would be blown off.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.