What Clothing Companies Choose To List In Hong Kong In 2018?

Since 2018, there are few clothing companies listed on A shares. Meanwhile, some clothing companies choose to list in Hongkong.

Now let's take a look at the clothing enterprises that have been listed in Hongkong since 2018.

Jiayi Holdings (Bridesmaid skirt maker)

In February 28th, Jia Yi Holdings Limited was listed on the main board of HKEx.

The prospectus shows that the company is a one-stop solution provider for bridesmaids, wedding dresses and special occasions. According to the Ipsos report, the company is the largest Bridesmaid skirt manufacturer in China in 2017, accounting for about 2.9% of the market share.

Over 95% of the proceeds from the past performance record came from fashion brands, which mainly sell products to American fashion brands, including bridesmaids, wedding dresses and special occasions, and provide diversified value-added services, including trend analysis, product design and development, raw materials procurement, design and development, production, quality assurance and inventory management.

As of the year of 2016, 2017 and March 31, 2018 and 6 months to September 30, 2018, the total earnings of Jiayi holdings were HK $165 million, HK $169 million, HK $208 million and HK $154 million respectively. The annual / period spills were HK $12 million, HK $24 million, HK $24 million and HK $17 million, respectively.

The total income increased by the year ended in March 31, 2016 to the end of March 31, 2018 to a composite annual growth rate of about 12.3%.

As of 2016, 2017 and March 31, 2018, and for the 6 months ended September 30, 2018, most of the company's products were sold to us customers, which accounted for about 87.8%, 88.6%, 92.8% and 94.7% of the total revenue for the same period.

The company's products are divided into four categories: bridesmaids, wedding dresses, special occasions clothes and others.

As of 2016, 2017 and March 31, 2018, the company's revenue was mainly generated by the sale of Bridesmaid skirts, which accounted for about 79.3%, 77.3% and 62.3% of the total revenue during the related period respectively. For the 6 months ended September 30, 2018, the company's revenue was mainly generated by sales special occasions clothing, which accounted for about 53% of the total revenue.

Shanshan brand (Menswear retailer)

The brand of Shanshan is split from the clothing business of A stock company listed in Shanshan.

In mid June 2018, Shanshan stock issued a notice that the subsidiary company of Shanshan brand management and operation Limited by Share Ltd received the letter from the Hongkong stock exchange, in principle, agreed with the application of the public offering of H shares issued by the Shanshan brand and the listing of the main board.

In June 27, 2018, Shanshan brand operation Limited by Share Ltd was listed on the main board of HKEx.

The prospectus shows that the brand business of Shanshan mainly involves the design, promotion and sale of men's business dress and business casual wear with three brands of FIRS, SHANSHAN and LUBIAM in China. Among them, FIRS brand products are aimed at middle-aged and high-income male consumers who prefer high-quality men's business suits to the age of 35 to 45. The SHANSHAN brand is mainly targeted at 25 to 35 year old men who pursue fashion trends and often purchase fashionable and cost-effective men's wear products.

The international brand LUBIAM was launched in 2005 by the company in partnership with Italy partners Lubiam Moda per L Uomo in China, targeting the 35 to 45 year old men who pursue low-key luxury.

In 2015, 2016 and December 31, 2017, the brand income of fir was 526 million, 592 million and 798 million yuan respectively, while the net profit of the company owners was 53 million yuan, 35 million yuan and 45 million yuan respectively.

In March 19th, the Shan Shan brand announced its 2018 annual performance announcement. The announcement showed that the brand income of Shanshan brand increased by 28.5% over the year ended December 31, 2018, and the company owner should net profit 36 million 210 thousand and 400 yuan, down 19.48% from the same period last year.

Shanshan brand said that revenue mainly came from group sales to distributors, direct sales and franchisee sales. The growth of group revenue came mainly from the increase of SHANSHAN brand franchisees' cooperative arrangements.

The number of retail stores has increased from 1027 in December 31, 2017 (except MARCO AZZALI) to 1226 in December 31, 2018, including FIRS 702, SHANSHAN 506 and LUBIAM 18, and the total number of three brand retail outlets has increased by about 19.4%.

Min Shun International Holdings (infant clothing manufacturer)

In January 26, 2018, Min Xin International Holdings Limited was listed on the Hong Kong Stock Exchange's gem.

According to the prospectus, the company specializes in manufacturing and selling baby garments and infant garments. It has two businesses, namely, foundry and retail, specifically for direct selling operations to overseas Brand Company or designated purchasing companies located in Hongkong, the United Kingdom and the United States. It sells private brand "MiDes" products and the three party brand peripheral products in the counters of self owned retail stores and department stores in Hongkong, and sells the original brand production business in Hongkong, the mainland and Macao wholesale.

The main business of Min Xin International Holdings is foundry business.

The company said that since its operation in 1993, the group has made many baby fabric products for infants and children, and sold to overseas third party Brand Company and designated purchasing companies in Hongkong, the United Kingdom and the United States. Most of the overseas third party Brand Company are internationally known baby clothing brands, such as Gerber, Mamas & Papas and Next.

In the fiscal year 2016, fiscal year 2017 and the 5 months ended August 31, 2017, the company's OEM production brought about 80.4%, 76.3% and 77.1% of the total revenue respectively.

In retail business, since 2004, the Department has set up department store counters in Hongkong, such as Quarry Bay, Sheung Wan and Nathan Road, to sell baby cloth products to carry out the original brand production business.

In 2009, the group opened its first "MiDes" self retailing store in Whampoa, Hongkong. At present, the group has 10 self operated retail stores and 12 department store counters, which are distributed in Hongkong Island, Kowloon and the new territories.

Since 2010, the company has entered into a wholesale agreement with its business partners in Macao, Taiwan and the mainland, and has sold their own brand products to them.

Statistics show that the company's total revenue in fiscal year 2017 was HK $336 million, down 18% compared with the same period last year, with a net profit of HK $10 million 269 thousand.

In February 4th, the company released the third quarter report of 2018/19. The report showed that in the 9 months ended December 31, 2018, the company's income was HK $185 million, a decrease of 12.5% compared to the same period last year, while the loss was HK $8 million 214 thousand during the period, compared with the previous year's profit of HK $625 thousand.

The company said that the decrease in revenue was mainly due to the global warming effect in winter, which made Hongkong's current autumn and winter seasons warmer and seriously affected the purchase intention of the original brand customers.

In addition, the poor performance of the global stock market and the depreciation of the renminbi have affected the overall economic development atmosphere and dragged down the overall retail consumption.

Huaxin handbag International Holdings (non leather handbag manufacturer)

In January 22, 2018, Huaxin handbags International Holdings Limited was listed on the main board of HKEx.

The prospectus shows that the company is a non leather handbag original equipment manufacturer (OEM) and Kampuchea Non Leather Handbag OEM.

It mainly manufactures and sells handbags, such as handbags, single shoulder bags, oblique backpack and portable bags. The terminal customers are mainly multinational fashion brands based in the United States, Canada, Spain, Sweden and Japan.

According to the Sullivan report, according to sales revenue, the company is the world's fifth largest Non Leather Handbag OEM, the largest Non Leather Handbag OEM in Kampuchea and China's second largest Non Leather Handbag OEM. In 2016, the global, Kampuchea and Chinese market share was 0.4%, 68.3% and 0.5% respectively.

The company's revenues in fiscal 2015, fiscal year 2016 and fiscal year 2017 were HK $546 million, HK $586 million and HK $677 million, respectively. In 2018, the revenue of four months was HK $238 million.

Data introduction, the company's products are mainly the mass market and mid priced products in the retail market. They are mainly non leather handbags made of PVC, PU and various textile materials.

The customer base includes internationally renowned brands including medium price brands, mass market brands and their respective sourcing companies.

The handbags produced by the company are sold to all parts of the world in the name of these brands, such as North America, Europe and Asia.

North American and European markets are the largest market for the company's products. In the 2015 fiscal year, 2016 fiscal year and 2017 fiscal year and 4 months in 2018, the sales volume of products exported to North America and Europe accounted for 87.5%, 76.3%, 71.5% and 68.5% of the total revenue, 3.7%, 12.5%, 17.5% and 17.5% respectively.

The interim report of the 2018/19 fiscal year of Huaxin handbag International Holdings shows that in the 6 months ended September 30, 2018, the company achieved an income of HK $360 million, an increase of 1.48% over the same period last year, and the company owner should net profit of HK $15 million 246 thousand, down 29.95% from the same period last year.

According to the announcement, the main reason for the increase in revenue is the increase in business demand for some fast fashion brands. Two is Kingdom of Cambodia's preferential tariff free quotas for exporting goods to the United States and EU member countries (except weapons and ammunition). Three, the company's expansion plan will increase its capacity after completion of the first phase.

Sen Hao group (ladies handbag retailer)

In January 16, 2018, Limited by Share Ltd of Shenzhen group listed on the Hong Kong Stock Exchange's gem.

Sam ho group prospectus shows that the company is a ladies handbag company, which mainly designs, promotes and sells ladies handbags, small leather products and travel products (including handbags, hand bags, wallet, wallet, card sets and suitcases) in the domestic market. According to online retail sales revenue, the company ranked first in the domestic handbag Market in 2016.

The company's brand portfolio includes two brands, one is the licensed brand ELLE, and the other is the company's own brand Jessie & Jane.

Data introduction, the group was established in 1999, and its initial business was positioned as light asset business, purchasing and selling products for end users.

In January 2006, the group entered into a licence agreement with the franchisee Hachette Filipacchi Presse, S.A. of ELLE, and began designing women's handbags, small leather goods and travel articles, and sold them in the name of ELLE brand.

In 2010, the group began selling ELLE products on the domestic e-commerce platform.

In April 2014, the group purchased an "Jessie & Jane" brand and product from an independent third party. In the name of Jessie & Jane, it designs and sells ladies handbags, wallet, card sets, key buckles, wallets, bills and shoes, and conducts online and offline retail and wholesale in China.

As of June 30, 2017, the group set up eight offline retail outlets and 89 retailers operating offline outlets in four municipalities, 17 provinces and four autonomous regions in China.

In March 21st, the group announced its 2018 annual performance bulletin. The announcement showed that the company achieved a profit of 141 million yuan by the end of December 31, 2018 and a decrease of 32.5% compared with the same period last year. The company's equity holders should account for 5 million 260 thousand yuan in losses and 3 million 840 thousand Hong Kong dollars in the same period last year.

The company said that the decrease in revenue was mainly due to 37.4%, 62.6% and 32.3% decline in online retail sales, offline retail sales and wholesale to offline retailers' profits respectively.

Since the beginning of 2018, the demand for women's handbags has weakened, the first reason is that Chinese consumers tend to buy cheaper products or buy more stylish and personal characteristics, and the mid-range brand products are affected, the group said.

Two, the recent Sino US trade war started in the second half of 2018, which inhibited China's consumption climate and increased the uncertainty of the consumer market.

Wah Shang concluded: since 2018, the clothing enterprises listed in Hong Kong have shown "small and beautiful" characteristics.

Taking stock of the 5 apparel companies listed on the Hongkong Stock Exchange since 2018, Jia Yi holdings is a bridesmaid skirt manufacturer, and the brand of Shanshan is split from the men's clothing business of Shanshan stock company listed by A shares. Minxin International Holdings is an infant clothing manufacturer and retailer. Huaxin handbag International Holdings is a manufacturer of non leather handbags, and Sam ho group is a lady handbag retailer.

It can be found that in addition to the brand of Shanshan, the other four industries are quite subdivided, and they have a considerable historical and market position in the niche market, and there are also long-term cooperative main customers.

However, the scale of these enterprises is not very large, generally showing a "small and beautiful" characteristics.

On the other hand, in terms of market value, the performance of the leading Bridesmaid skirt "leading enterprise" Jiayi holdings, which has recently been listed, is currently valued at HK $1 billion 390 million, and the stock price is the highest among the 5 enterprises. The market value of other enterprises does not exceed HK $300 million.

In particular, the two companies listed on the gem, the International Trust holdings and Sen Hao group, have a market value of not more than HK $100 million, and the share price is lower among the 5 enterprises. This is also in line with the current situation of Hongkong listed companies which are generally not high in market capitalization.

In general, although the number of clothing companies listed in Hong Kong since 2018 has been larger than that of A shares, there is also a lack of large scale companies' logged in. This is also consistent with the relatively low threshold of listing in Hong Kong stock market, relatively low valuation of enterprises, and the polarization of market value.