Stock Information
Key dates:
Public sale deadline: October 5, 2018 at 12:00 p.m.
Public Notice Application Results: 2018/10/18
Listing date: October 19, 2018
Exclusive Sponsor:
Fengsheng Financing Co., Ltd
Statistical data summary:
Number of shares offered: 228,000,000 shares (including 28,000,000 shares sold) Percentage of publicly offered shares: 10.0%
Sale Price: HK$0.40 to HK$0.44
Estimated amount raised: HK$80 million to HK$88 million
Admission fee per hand: HK$4,444.34
Group Overview
The Group is a clothing manufacturer headquartered in Hong Kong, providing customers with one-stop clothing solutions. The group's clothing products are divided into four categories: outerwear, bottoms, tops and other products. In the year ending March 31, 2018, the sales volume of clothing products was approximately 4.4 million pieces. During the period, the Group had seven customers, and clothing products sold to the US market accounted for about 92.6% of the Group's total sales.
Industry Overview
According to Ipsos research and analysis, the global retail sales value of apparel products increased from 1,0377 billion US dollars in 2012 to 1,341 billion US dollars in 2017, a compound annual growth rate of about 5.3%. The retail sales value of US apparel products also increased from 221.1 billion US dollars to 244.3 billion US dollars during the period. The report predicts that from 2018 to 2021, the compound annual growth rate of global and US retail sales values will be 5.5% and 3.0%, respectively
Risks
Group earnings heavily requested a small number of customers. In the year ending March 31, 2018, the revenue split from the largest and second-largest customers accounted for 50.2% and 42.2% of the Group's total revenue. If such customers reduce the number of orders placed to the Group, it may cause severe damage to the Group's business and financial situation.
valuations
According to the prospectus, assuming that the global offering was completed on March 31, 2018, 800 million shares are expected to be issued as soon as the share sale is completed, and the net value range of tangible assets per share is HK$0.14 to HK$0.15 after the stock sale is completed.