KK Group Hong Kong stock delivery table, "trend retail first stock" is on the line?

Wen / Bazhen

Product / Node Finance

According to Node Financial News, KK Group, a trend collection store, formally submitted an application for listing to the Hong Kong Stock Exchange on November 4 to seek a listing on the main board.

According to the prospectus, KK Group, founded in 2015, focuses on the operation of trendy retail stores and provides unique products through the DTC model.

Up to now, the company has four brands: KKV comprehensive lifestyle trend retail store, THE COLORIST make-up trend retail store, X11 trend culture retail store and KK lifestyle mini store, with a total of 680 stores in 169cities in China and one city in Indonesia.

As one of the three major trend retailers in China, KK Group provides consumers with 18 major categories and more than 20, 000 SKU trend products, including beauty makeup, fashion games, food and beverages, household goods, stationery and other major core household items.

In terms of performance, from 2018 to 2020, KK Group recorded operating income of 155 million yuan, 464 million yuan and 1.646 billion yuan respectively, and corresponding net profit of-79.485 million yuan,-515 million yuan and-2.017 billion yuan respectively.

In the first half of 2021, KK Group's revenue increased by 23.5% to 1.683 billion yuan, which has exceeded the level of the whole of last year, but the net loss nearly tripled to 4.397 billion yuan compared with the same period last year, with a total loss of more than 7 billion yuan during the reporting period.

As for the reasons for the performance loss, the KK Group explained that it was mainly due to the continued increase in the size of the business and the investment in the store network, as well as the increase in the fair value of financial liabilities at fair value to profit and loss.

After excluding this factor, the adjusted net profit of the company in 2018-2020 and the first half of 2021 was-41.796 million yuan,-76.951 million yuan,-171 million yuan and-38.462 million yuan respectively.

It is worth mentioning that, although the loss has not yet been reversed, the profitability of KK Group has increased steadily, with gross profit margins of 32.1%, 27.1%, 30.4% and 36.2% respectively in the first half of 2018-2021. Among them, the gross profit margin in the first half of 2021 increased by 6 percentage points over the same period last year.

Node Finance learned that based on the broad prospect of the scale of China's trendy retail market and the rapid growth trend of KK Group, since its establishment, the company has attracted a lot of capital attention, and has received investment from many star institutions, such as Deep Venture Capital, Matrix Partners, Hongtai Fund, CMC Capital, Wuyue Capital, JD.com, and so on, with a total financing amount of more than 4 billion yuan, with a pre-IPO valuation as high as 20 billion yuan.

This time, KK Group intends to win the "trend retail first stock" and intends to raise funds for the sustainable development of the store network and further increase market penetration, enhance the digitization of business, and expand and optimize the supply chain and distribution channels.

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