Men's brand Bu Sen publicly raises 394 million yuan and expands direct operation to build

Huang Xiaoming speaks in the words of Bu Sen Menswear

Zhejiang Busen Fashion Co., Ltd. recently issued an announcement announcing that the company has obtained the approval of the China Securities Regulatory Commission to issue 23.34 million yuan of ordinary shares (A shares) to the public at a par value of 1.00 yuan each, and the issue price is 16.88 yuan per share. The total amount of funds raised was 339.792792 billion yuan. After deducting the issuance cost of 33,175,400 yuan, the net proceeds raised were 3.6082186 billion yuan. The raised funds are mainly used to invest in terminal channels and expand the coverage area of ​​the "comfortable life concept store" of direct sales stores.

Based on the previously published "Proposal for initial public offering of shares (A shares)" issued by the company, the company originally planned to build 26 comfortable life concept stores and direct flagship stores in 26 cities across the country in recent years. In the next few years, it will be in key strategic cities such as Beijing, Hangzhou, Shenyang, Guiyang, Lanzhou and Hefei, as well as Jinhua, Jiaxing, Taizhou and Wenzhou in Zhejiang, Wuhu, Chaohu, Huangshan, Huaibei and Tongling in Anhui, and Dalian and Qinhuangdao in Liaoning. New cities such as Anshan, Tieling, and Yingkou have opened a "comfortable life concept store." Through the opening of these directly-operated stores, we hope to fully display our products and business philosophy, expand our brand influence, rely on our production bases to consolidate our existing market share, and at the same time develop subordinate franchised stores.

However, in the past two years, the development of the marketing network of the company has been relatively rapid. The existing network has partially covered the cities where the above-mentioned plans were opened, and the domestic consumer market and commercial real estate environment have also undergone major changes. Therefore, in the next few years, the company will adjust the network on the basis of the originally planned 26 regions, and will select new cities with strategic significance in the country and expand the direct operation network. The investment amount of the marketing network construction project will not exceed the total investment planned for the original project, and the number of 26 directly-operated stores originally planned for investment and the total investment area will not change.

In addition to stepping up the construction of terminal direct-operated stores, the company’s shares have continued to operate over the past two years.

In April, the company announced that it plans to use its own capital of RMB 20 million to set up a wholly-owned subsidiary—Hangzhou Mingplas Garment Co., Ltd.; in addition, its wholly-owned subsidiary, Tongling Busen Clothing Co., Ltd. will also invest in “annual production. 400,000 high-end jacket production line construction.

The company has implemented the project by adding capital to Tongling Busen Clothing Co., Ltd. The capital increase amounted to 53.65 million yuan.

With regard to product line expansion, from the end of 2010, the company expanded its new product line, adding the “Green Label” series designed for men aged 25-35 years and the “Ming” series for 30- to 40-year-old age groups. Among them, the Green Label continues the product orientation of the original "Black Label" series of the original "Black Label", but the brand grade has improved; while the "Ming" series is the main series of the company's extension to high-priced products, and the product design style is based on the British style. the Lord.

Haitong Securities believes that the Green Label series will open 80 stores by the end of 2011, and the sales revenue of the “Ming” series will be expected to reach 2-3 billion yuan. With the introduction of new product series, the products of Pisen Group have been expanded to a greater extent in terms of price level and consumer groups. Through product segmentation, the positioning of the terminal market is more accurate, which helps the company to explore the depth of market segments.

Guosen Securities believes that the company first put forward the concept of "comfortable business men's clothing" in the industry, focusing on the use of natural, environmentally friendly fabrics such as cotton, linen and wool. The growth of the company is relatively stable. The second and third tier cities are the main markets. The key regions are East China and South Central China.

According to the 2010 annual report, as of December 31, 2010, the total revenue of the company was 5.345498 trillion yuan, operating profit was 150.6411 billion yuan, and the gross profit rate was 28.18%. Of which shirts operating income of 1,280.67 million yuan, profit 3,540,100 yuan, gross profit margin of 26.94%; suit operating income of 10,293.4 billion yuan, profit of 34,889,600 yuan, gross profit margin of 31.94%; trousers operating income of 11,658 million yuan; operating profit of 28,846,700 yuan, Mao The interest rate is 24.44%; jacket business income is 9673.65 million yuan, profit is 27,960,200 yuan, and gross profit margin is 28.90%. In addition, the export business, which accounted for 14.81% of the company's main business income, had an operating income of 79.606 million yuan.

It can be found that the shirts, suits and trousers of the Busen Group are the dominant category, with the highest sales of shirts and the highest gross profit rate of suits, while the overall sales of the jackets need to be improved, but the gross margin is higher. Its shirts, suits and trousers are also identified as national inspection-free products.

According to the recently released semi-annual report, in the first half of 2011, the company realized operating income of 257 million yuan, operating profit of 21,843,265,000 yuan, total profit of 2,17,807,800 yuan, and net profit of 16,895,228 million yuan, an increase of 26.99%, 3.86%, 3.84%, and 10.22% was mainly due to the fact that as the company's market expansion efforts increased, the network construction showed effectiveness and the company’s brand image was further enhanced, which led to a steady growth in the company’s performance.

As of December 31, 2010, Busen apparel has a total of 11 direct-operated stores, 11 counters, 752 franchised stores and counters.