On March 1, Belle Fashion submitted an application for listing on the Hong Kong stock market.
According to public information compiled by Bread Finance, Belle International was listed on the Stock Exchange in 2007 and completed privatization and delisting in 2017. In March 2022, Belle Fashion applied for a listing on the Hong Kong stock market, but the listing was not successful.
For the nine months ended November 30, 2023 (the first three quarters of fiscal 2024), Belle Fashion achieved revenue of 1611.2 billion yuan, net profit of 205.8 billion yuan. During the period, the company's revenue from footwear and apparel accounted for %. In recent years, Belle Fashion's gross profit margin has continued to exceed 60%, and sales and marketing expenses have accounted for more than 40% of revenue.
As of the Latest Practicable Date, Hillhouse held Belle Fashion through Hillhouse HHBH and CDH Investments through SCBL. 16% stake.
China's largest fashion footwear company, the industry's growth is under pressure.
According to the hearing information pack, Belle Fashion is a leading fashion trend company and the largest fashion footwear company in China in terms of retail sales in 2022, with 19 core private labels and co-brands with a diversified layout, covering women's, men's and children's footwear, apparel and accessories.
In terms of retail sales in 2022, Belle Fashion's market share in China's fashion footwear market is 123%。Currently, Belle Fashion's brands include Belle, Staccato, Tata, Hush Puppies, 73Hours, etc.
In the first three quarters of fiscal year 2024, Belle Fashion's revenue accounted for % of footwear and apparel revenue, respectively.
Bread Finance combed through public information and found that as of November 30, 2023, Belle Fashion's offline retail network consisted of 8,361 directly-operated stores. In recent years, the company's share of online sales has increased significantly, from less than 7% for the year ended February 28, 2017 to about 28% for the nine months ended November 30, 2023.
One of the challenges facing Belle Fashion is that the industry's growth is under pressure. According to the hearing information pack, from 2017 to 2022, the compound annual growth rate of China's fashion footwear and fashion apparel market was minus 4% and minus 0., respectively4%。
Net profit of 20 in 9 months5.8 billion, sales and marketing expenses accounted for more than 40% of revenue
From the perspective of performance, Belle Fashion's performance in fiscal year 2023 (referring to the year ended February 28, 2023, the same below) has declined significantly, achieving revenue of 192100 million yuan, a year-on-year decrease of 183%；Achieved a net profit of 12RMB5.7 billion, down 54% year-on-year, mainly attributable to lower gross profit margin, higher sales and marketing expenses, and higher general and administrative expenses as a proportion of revenue.
In the first three quarters of fiscal year 2024, Belle Fashion's performance picked up, achieving revenue of 1611.2 billion yuan, net profit of 205.8 billion yuan.
In recent years, Belle Fashion's gross profit margin has continued to exceed 60%. In the expense structure, the company's sales and marketing expenses continue to account for more than 40%. In the first three quarters of FY2022, FY2023 and FY2024, Belle Fashion's sales and marketing expenses totaled more than RMB24 billion.
After privatization, it was spun off and listed, and Hillhouse held 44 shares48%
According to the hearing information pack, Belle International was listed on the Hong Kong Stock Exchange on 23 May 2007 at an offer price of 6HK$2, with a market capitalization of about HK$51 billion.
On 25 July 2017, Belle International, through the offeror Muse B, was privatised by a consortium consisting of Hillhouse HHBH and its associates, Sage Ventures and SCBL at a valuation of HK$53.1 billion. During the approximately 10-year period in which the shares were listed on the Main Board of the Hong Kong Stock Exchange, Belle International's principal businesses included the current Belle fashion business and sports shoes and apparel retail business. From the beginning of 2014 until the privatization, the performance of the footwear business, which is the main part of Belle International's operating profit**, declined significantly.
In October 2019, Belle International's sports shoes and apparel business entity Taobo (6110HK) is listed separately on the Stock Exchange. The issue price of Taobo is 85 Hong Kong dollars shares, the market value once exceeded 60 billion Hong Kong dollars. At present, Taobo's share price has fallen below the issue price, and its market value is less than HK$35 billion.
As of the Latest Practicable Date, Wise Ventures (a management shareholder), Hillhouse HHBH (an indirect subsidiary of Hillhouse LP, which is managed and controlled by Hillhouse Investments) and SCBL (ultimately controlled by CDH V, which in turn is ultimately controlled by CDH Investments) each held Belle Fashion. 16% stake.
Article serial number: 1765200715569041408).
Disclaimer: This article does not constitute any investment advice to anyone.
Intellectual Property Statement: The intellectual property rights of Bread Finance works are owned by Shanghai Miaotan Network Technology.