Bosideng Purchase Shenzhen Women'S Wear Brand Jesse Remaining 70% Stake

Recently, China Down Jackets Manufacturer Bosideng International Holdings Limited announced its acquisition of Shenzhen on Friday. Women's wear brand Jessie Jesse has a remaining 70% stake.

Bosideng has acquired a 70% stake in banbao International Holdings Limited, a wholly owned Affiliated Companies Jesse International Holdings Limited, and Prestige Stand Investment Development Limited Holdings Limited. The above parties are registered companies in the British Virgin Islands.

As a spanaction price, Jesse international will pay RMB 67 million 80 thousand yuan to Jin Feng investment and allot 814542857 shares of Bosideng new shares, while paying Prestige Stand cash RMB 2 million 920 thousand and allotment of 35457143 shares.

The above spanaction price is RMB 70 million and 850 million new shares, of which the cost of new shares is HK $0.652 per share, which is about 0.31% higher than the closing price of HK $0.65 in July 8, 2016. In fact, the total price of the above spanaction is RMB 70 million, plus HK $554 million 200 thousand worth of HK $635 million 500 thousand.

New shares account for 9.61% of Bosideng's expansion. After the completion of trading, Jin Feng will hold Boston 9.21%, while Prestige Stand will hold 0.4%.

According to the trade bulletin, the pre tax profit and net profit in the fiscal year ended March 31, 2016 were 56 million 377 thousand yuan and 49 million 12 thousand yuan, respectively, which shrank by half compared with the previous fiscal year. The pre tax profit and net profit of bang Bao International year ended March 31, 2015 were 107 million 800 thousand yuan and 88 million 843 thousand yuan respectively. The total assets and net assets of bang Bao International as of March 31, 2016 were 506 million 200 thousand yuan and 2.962 yuan respectively.

According to statistics, the total income of Jessie Jesse women's clothing in the 2016 fiscal year ended March 31, 2016 was HK $332 million 900 thousand, an increase of 4% over the same period last year, accounting for 40.3% of the non down garment business of Bosideng group. In the 2016 fiscal year, the total income of Bosideng non down garment business was HK $826 million 100 thousand.

The above spanaction makes Jessie Jesse women's clothing valued at about HK $910 million, with a sales rate of about 2.73 and a P / E ratio of 15.95. By the end of March 31, 2016, in the 2016 fiscal year of March 31, 2016, the Jessie Jesse women's wear reduced 8 stores and operated a total of 203 stores.

In fact, when the annual report was released at the end of last month, Bosideng was looking for opportunities to buy and buy Women's clothing brands to make up for the sharp shrinkage of other feather brands outside Bosideng.

According to statistics, as of March 31, 2016, in the 2016 fiscal year, Bosideng's revenue decreased by 8% to 5 billion 787 million 300 thousand yuan per year, accounting for 64.8%, 19.1% and 16.1% of the group's down garments business, OEM processing business and non down garment business respectively. They fell 2.5%, 18.1% and 18.2%, respectively, to 3 billion 977 million 200 thousand yuan, 984 million yuan and 984 million yuan respectively. In addition to Bosideng brand's revenue growth of 2.8%, the sales of three brands of snow flying, ice cream and Compaq have all shrunk, and sales of icy and KangBo have dropped by 28.2% and 47.2% respectively.

Gao Dekang, founder, chairman and chief executive of Bosideng, plans to reduce the down garment business from 80% to 60% in three years, but in the 2016 fiscal year, it will increase by nearly 4 percentage points compared with 64.8% in the 2015 fiscal year.