Semir'S GXG, The Menswear Brand, Has Been Listed In Hong Kong. The LV Fund Is The Largest Shareholder.

Recently, the famous man Brand GXG public Cloth went to The prospectus for IPO of the Hong Kong stock board. The listing in Hong Kong, GXG adopted the VIE mode, the main body of the listing is Alpha Smart Limited registered in the Cayman Islands, its sponsor team You Ruiyin, Citigroup and recruit international.

From the founder's team, GXG There is no doubt that there are pure Chinese blood lineages. But now, the controlling shareholder of GXG can be traced back to LVMH group.

In addition, in early 2014, A shares small and medium-sized board companies. Semir apparel The acquisition of GXG failed. At this point, the choice of GXG to Hong Kong, what kind of magic weapon to rely on listing?

Line gross margin leading

Zhe Mu Shang, one of the main business entities of GXG, is registered in Ningbo. In 2007, the GXG brand came out and opened its first retail store in Ningbo.

From this point of view, GXG is based on the identity of the traditional offline brand, but the sales channel of GXG is not limited to this.

In 2010, GXG opened its official flagship store in Taobao. In 2011, during the double 11 period, GXG realized the first sale of Tmall men's clothing category, and again made the first sale of Tmall men's clothing category in 2016.

According to prospectus, in 2015 -2017 (hereinafter referred to as the reporting period), GXG's online clothing sales revenue were respectively Five point zero two Billion yuan. Seven point one five Billion yuan. Twelve point one 1 billion yuan, one is rapid growth, the annual compound growth rate is about 55.25% The two is the increase in proportion and the proportion of online income to total income. 18.5% Rise to 34.5% 。 The sales revenue of clothing under the line is respectively in the reporting period. Twenty-one point four two Billion yuan. Twenty-two point six Billion yuan. Twenty-two point eight seven The rapid growth of online business has resulted in a decline in total revenue, but the business income on the high line has become the most profitable business.

GXG's offline channels are divided into self run stores, partnership shops and distribution outlets. The proportion of partnership shops is always the least, but it is still from 2015. 5.1% Up to 2017 10.8% 。 Self run stores and distribution stores showed a trend of decline. In 2015, the proportion of self owned stores was only 26.7% The proportion of distributors in the same period is as high as that of the same period. 47.1% In 2017, the above proportion reversed, and the proportion of self owned stores rose to 32.3% The proportion of distributors decreased. 22.1% 。

Retailer commentator Ma Gang accepted " International Financial Daily In an interview with reporters, the changes in the channel structure of the offline outlets indicate that the company attaches importance to its proprietary business and retailing, and on the other hand, it is also good for the company to take full control of the channel. The whole garment industry has evolved from joining and acting to direct and retail.

From the level of gross margin, online is lower than offline. During the reporting period, the gross margins of online channels were respectively 35.5% 44%, 47.4% In line with this, the gross profit margin of offline channels is 53.9% , 57.5% , 57.9% They all grow year by year.

From the perspective of subdivision, the number of partnership shops is the minimum and gross margin is the lowest. 39.9% Gross profit margin increased to 44.4% The gross profit margin of self run stores is always at the highest level, and the reporting period is within the reporting period. 68.1% - 68.4% The volatility is stable and the gross margin of the distributor is in the second echelon. 47.4% -52% is always higher than the gross profit margin of online channels at the same time.

Ma Gang analysis, the above situation depends on the channel differentiation of product mix and audience differences, GXG planning for online channels more targeted at cost-effective consumers, and online sales also need to match other competitors, consumers are more sensitive to online parity. Another reason is that online sometimes also acts as an inventory clearing task, which also affects gross margins.

This card is the biggest engine of earning profit.

GXG also adopts a diversified strategy in the category.

In 2010, GXG launched the sub brand "GXG jeans" to create. Fashion men's wear Brand.

In 2012, the brand "GXG kids" of children's wear was launched.

In 2014, the brand Yatlas of sportswear was launched.

In 2017, the famous Australian sports brand "2XU" was introduced and Tmall flagship online shop was set up on Tmall.

Judging from the proportion of income, the brand is far ahead, and the lower the proportion of the establishment, the lower the trend. 　　

Source of data: prospectus

During the reporting period, GXG card achieves revenue. Eighteen point six two Billion yuan, 2 billion yuan. Twenty-three point five eight Billion yuan, accounting for 68.6% 66%, 67.2% First, the proportion of income is far ahead. Two, the proportion of income is basically stable.

The second largest revenue engine is GXG jeans, with a revenue level. Six point three Billion yuan - Six point nine The proportion in the reporting period is 100 million yuan. 23.2% 21%, 19.5% 。

Third most of the revenue comes from GXG kids, and sales account for the fastest growth since 2015. 4.7% Turning to 2017 10.2% 。

The above three brands can be classified as GXG series, which account for over 97% of sales in the reporting period.

The private brand Yatlas and the introduction of brand 2XU belong to the field of sportswear, which is more like an attempt to expand the scope of business. From the perspective of income ratio, the proportion of sales of Yatlas in the reporting period is respectively 0.9% , 2.2% , 2.5% 2XU was introduced only in 2017, and sales accounted for that year. 0.1% 。

Judging from the level of gross margin, the attempt of transboundary sportswear is reasonable.

The gross margin of private brand Yatlas is the highest in the subdivision category. 65.8% , 66.2% , 64.3% 。

Gross margin of second is the GXG card, the gross profit margin during the reporting period is 50.5% , 55.6% And 56%, increase year by year.

The gross margin of brand GXG jeans and GXG kids is not large, fluctuating at around 50%, and the gross margin of GXG jeans in 2017 is 50.5% And GXG kids is 48.1% 。

The gross profit margin of brand 2XU was relatively low, in 2017. 46.4% 。

LV fund is the largest shareholder.

This IPO is not the first time that GXG has been linked to the capital market.

As early as June 19, 2013, Semir clothing announcements announced that GXG, He Rong, Yu Yong, Zhu Zhaoguo, Tu Guangjun and Mao Chunhua, were expected to buy 71% of the shares in zhe mu, and the transaction volume is expected to be Nineteen point eight Billion yuan to Twenty-two point six Billion yuan. This handwriting was the largest acquisition of Chinese traditional clothing brands at that time.

According to the purchase price given by Semir at that time, China zhe Mu's valuation of all shares was as high as 3 billion yuan, while the latter's net assets were only at that time. Two point seven two Billion yuan, more than 10 times the premium. According to the draft, GXG's performance commitment covers the net profit growth rate, that is, the net profit growth rate in 2013 -2015 is no less than 28.6% 20%, 20%.

In January 2014, Semir clothing announcement failed to acquire 71% stake in Ningbo zhe Mu sang Holdings Limited.

After the failure in 2014, GXG did not stop.

In 2015, Cayman Islands Company Alpha Smart Limited was established. Perhaps GXG has already had the initial intention of going overseas.

In 2016, L Catterton and Crescent Point purchased nearly 70% GXG shares with nearly 4 billion yuan, L Catterton and Crescent Point were independent of each other, and the share of L Catterton and Point was 73% and 27%, respectively. Catterton completed its holdings of GXG, and GXG became the only company in the Asia Pacific region to hold more than 51% of LVMH funds.

Although the shareholding ratio is the highest, GXG still identifies these investors as financial investors in the prospectus, while L Catterton's managing director is also a non-executive director, although he is also GXG's chairman.

"The entry of LV fund has made GXG change from the location and division of labor to the product structure and online and offline channels. This is also what we see. The number of stores has increased little, but sales have increased rapidly, thanks to the improvement of store location, product design and price." Ma Gang said. 　　

Source of data: prospectus

According to the prospectus, the net profit of GXG is about Three point four five Billion yuan, 400 million yuan. Four point two two The annual compound growth rate calculated by this method is 10.6% 。

During the reporting period, the net assets of GXG were approximately Five point six four Billion yuan. Ten point zero seven Billion yuan, - Two point three The main reason for GXG's negative net assets in 2017 was attributed to the increase in new bank borrowings in 2017. At the end of 2017, interest bearing banks and other borrowings amounted to $100 million. Fifteen point four five Billion yuan.

In addition, the reporter noted that in 2017, the dividend amount of GXG declared dividend was roughly Sixteen point one two Billion yuan.