Shanshan Fir "Shanshan Brand" Listed In Hong Kong, Zheng Yonggang Wants To Maximize The Interests Of The Chicken.

"Please call me financier."

Zheng Yonggang, 60 years old, has made numerous public statements.

The chairman of the board of directors of this Shanshan Group certainly has his bottom line.

It is not only because the Bank of Ningbo, which was launched in the early years as a founder shareholder, is now a listed company with nearly 100 billion market capitalization. Its net profit in the past 2017 fiscal years has reached 9 billion 330 million yuan. Nor is it considering that he is a financial investor of Pudong Development Bank and Huizhou Merchants Bank (03698), and Jun Kang life, which once held 26% shares. Only 9 billion 330 million years ago, aidixi, who was 40% yuan with 1 billion 300 million yuan, was finally hired by STO.

The reputation of "shell king" spread like wildfire.

But now, Zheng Yonggang's attention is not on the mark of other people's family.

He needs to concentrate on dealing with a listing of his own business.

This is where he started.

Since its listing application to the HKEx in 2017, the Shanshan stock company, which rose 30 years ago by the clothing and garment industry, has issued a prospectus recently, hoping to spin off its clothing business and listing in the name of "Shanshan brand".

This is a long planned action.

As early as 2016, Shanshan stock was intended to strip Zheng Yonggang of this "most emotional business" to overseas capital markets.

It is reported that the purpose of Zheng is to reorganize the assets of its brand clothing business and other related brand clothing business, and then put the business into the brand of Shanshan and publish it on the public issue of H shares.

If Shanshan brand has successfully landed on the Hong Kong stock market, Zheng Yonggang will have two listed companies in the market.

In May 23, 2017, Shan Shan had split up the financial leasing company's rich silver financing shares (08452) to land in Hongkong's gem, but the company ended up closing at HK $460 million in May 7th.

The problem is the estrangement of clothing business over the years, plus domestic men's wear.

In recent years, the plight and competition intensified, and the scenery of the fir industry in men's clothing industry is long gone.

Taking suits for example, it has dropped from 37.4% in 90s to 2.25% in 2015.

From the data of revenue and retail outlets, it was also overtaken by its former rivals.

In the latest report of Shanshan stock exchange in 2017,

Business sector 666 million yuan revenue and 49 million 374 thousand and 800 yuan attributable to shareholders of listed companies net profit, respectively, increased by 27.23% and 36.16% respectively, but the company's annual 8 billion 271 million yuan revenue and 896 million yuan attributable to shareholders of listed companies net profit, only 8.05% and 5.5% weight.

Chicken ribs are tasteless and tasteless.

It seems to be uncertain whether the Shanshan clothing business, which is not so promising, can make prudent Hong Kong investors willing to pay.

Zheng Yonggang's wishful thinking

Zheng Yonggang, who founded the brand of Shan Shan suit in 1989, is known as "general Barton of China's clothing industry" for saving a bankrupt clothing enterprise and helping him to land on the Shanghai Stock Exchange in the name of Shanshan stock.

"Chinese fir suit, do not be too smart" advertising language, but also let it in the field of men's suit for several years to become the market share of the title.

In 1998, the financial crisis broke out in third years after the landing of Chinese fir shares, and China began to negotiate to join WTO.

Against this background, Zheng Yonggang realized the crisis from international brands.

In March 1999, he began looking for a breakthrough in the future industry and finally decided to acquire the only national carbon Research Institute in China at that time. The Institute mainly studies the anode materials for lithium batteries.

At present, the new energy battery material has become the most important business segment of Shanshan stock. It has become a world-class supplier in the comprehensive materials such as lithium ion anode, negative electrode and electrolyte, and has entered the global supply chain of multinational companies such as apple, Mercedes Benz and Panasonic.

2017 Shanshan annual report shows that the company's annual operating income of 8 billion 270 million yuan, an increase of 51.07% over the same period, net profit of 896 million yuan, an increase of 171.42% over the same period, net profit after deducting non recurring gains and losses was 441 million yuan, an increase of 72.07% over the same period last year.

Among them, the new energy business achieved 7 billion 489 million yuan, accounting for 90.5% of the total business revenue; the apparel brand operation business was 666 million yuan, accounting for 8.1% of the company's total business income; the investment and category financial business achieved 116 million yuan, accounting for 1.4% of the total operating revenue.

It is reported that the positive materials produced by Shanshan stock company have been ranked first in the country for four consecutive years in terms of brand competitiveness, while negative materials have also reached the top for the first time in 2017, and the electrolyte has increased to fourth in China.

The protagonist of "not too handsome" is obviously changed.

At the same time, the company's new energy vehicle business extending to the downstream has also achieved a strong revenue growth of 476.64% over the past year, and its revenue has been close to the traditional clothing sector.

More importantly, in 2017, the company acquired new energy special vehicle production qualification.

Zheng Yonggang and his team have been planning to split up their clothing business since 2016 when they have already left the main business and clothing business at the edge.

In April of that year, Shanshan shares announced that they were going to split the two companies listed in Hong Kong, one for the financial leasing company, and another for the Shanshan clothing.

Subsequently, Fu Yin financing shares landed on the Hongkong gem in May 23, 2017, raising HK $79 million 300 thousand.

The clothing business of Shan Shan carried out resource integration in the same period.

In May 2017, Shanshan brand submitted an application for listing.

In March 13, 2018, the Hongkong stock exchange's official website announced its prospectus.

Shanshan brand listing fund raising plan is used for expansion of stores, improving supply chain, logistics and inventory management capabilities, and upgrading retail network management, marketing and promotion.

Previously, the operation of the brand of Shanshan mainly depended on the continuous blood pfusion of the controlling shareholder, Shanshan Group, and the capital pressure it had undertaken continued to increase after the split operation was completed.

The prospectus said that since 2016, Shanshan brand has no longer borrowed money from the controlling shareholders, mainly because of cash and loans generated from its own business activities.

As of December 31, 2017, the company had 102 million yuan in cash and cash equivalents, 406 million yuan in bank loans and 14 million 100 thousand in financing costs.

If approved by the China Securities Regulatory Commission, the Shanshan brand will be issued at HKEx at no more than 42 million 857 thousand shares, with a face value of 1 yuan per share.

But market participants say that even if the fund-raising is successful, the funds needed for the brand expansion plan are still inadequate.

However, some analysts said that Shanshan Group's move is to better highlight its own "high-tech attributes".

In particular, when the Ningde era IPO of the production of power batteries gained more than 120 billion yuan valuation, Zheng Yonggang obviously touched something.

The leader of "decline"

The four brands currently owned by Shan Shan, including the FIRS at the beginning of its establishment, are aimed at "captive" the brand new SHANSHAN established by young men in 2015, and the other two international brands MARCOAZZALI and LUBIAM.

It is reported that the two brands were launched by Shanshan and Italy partners Forall Confezioni and Lubiam Moda perL Uomo in 2001 and 2005 respectively.

At present, the four brands still occupy the most important position in FIRS, while SHANSHAN is coming from behind.

In the 2015-2017 years, sales of FIRS brand products accounted for 82.3%, 77.9% and 62% of the total, respectively. SHANSHAN accounted for 0.3%, 9.1% and 29.4% respectively.

Shanshan brand said in the prospectus, "in view of the declining sales performance of two international brand products, in order to strategically redistribute resources for the development of the two core brands, in October 2017, we searched for independent third parties to sell them."

According to the data released by the China Industrial and Commercial Research Institute database, in 2015, the market concentration of Chinese men's suits was still low, and the market share of the top ten brands of men's suits was only 23%.

Among them, YOUNGOR accounted for 6.62% and fir was 2.25%.

Shanshan continues to emphasize in the prospectus, "according to the burning advisory report, in 2017, with the retail income, our FIRS brand is China's fifth largest men's business dress brand."

But compared with peers, its profit level and the number of outlets are obviously different.

As of December 31, 2017, the company had 1052 retail outlets operated by distributors, direct distributors and franchisees.

Meanwhile, in the same period, the number of retail outlets with the same men's clothing business as YOUNGOR, China's Li Lang (01234) and nine Mu Wang were more than 2500.

In terms of revenue, the brand income of Shanshan brand reached 798 million yuan in 2017, an increase of 25.8% compared with 2016.

But compared with other men's clothing listed companies in the same period, it is obviously not a tier.

In that year, the business revenue of Hai Lan's home based on men's clothing was 18 billion 200 million yuan, YOUNGOR's clothing business revenue was 4 billion 907 million yuan, and China's lon's revenue amounted to 2 billion 441 million yuan, and the business revenue of nine Mu Wang amounted to 2 billion 565 million yuan.

From the profit situation, Shanshan brand has been faced with a situation of increasing profits but not increasing profits in recent three years.

In the 2015-2017 year, the brand income of Shanshan was 526 million yuan, 592 million yuan and 798 million yuan respectively.

However, the profits in the three years did not rise or fall, which were 56 million yuan, 34 million yuan and 37 million yuan respectively.

Prime capital

Can Zheng Yonggang, a self styled gold finger, still turn gold into gold this time?