On March 1, 2024, Belle Fashion Group (“Belle Fashion” for short) from Shenzhen, Guangdong submitted a prospectus to the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board. This is another application almost two years after it was submitted on March 16, 2022.
Belle Fashion, whose business was previously operated by Belle International (original listing code 01880.HK), was listed on the Hong Kong Stock Exchange in an IPO on May 23, 2007. Later, on July 27, 2017, Belle International Co., Ltd. was officially privatized and delisted from the Hong Kong Stock Exchange. At the time of delisting, the market value was approximately HK$53.1 billion.
Link to Belle Fashion's prospectus:HKEXNEWS.hk/app...
Main business
Belle Fashion, founded in 1981 in Hong Kong, is a leading fashion trend company and the largest fashion footwear company in China. It has 19 core private brands and cooperative brands (including authorized operating brands and agency brands) with a diverse layout, covering the categories of footwear, clothing and accessories for women, men, and children. The company participated in and perfected the entire value chain including product planning, design and development, production, direct to consumer (DTC) retail and customer operations, and established an industry-leading vertically integrated business model.
According to Frost & Sullivan,
In terms of retail sales in 2022, Belle Fashion ranked first in China's fashion footwear market, with a market share of about 12.3%. At every “Double Eleven” and “618” shopping festival during the track record period, at least five of Tmall's top ten best-selling fashion women's shoe brands have always come from the company in terms of retail sales;
According to the total retail sales statistics of online fashion footwear in 2022, Belle Fashion ranked first among all Chinese companies.
In terms of retail sales, from 2018 to 2022, Belle Fashion achieved the largest increase in market share among the top ten fashion footwear groups in China;
As of November 30, 2023, Belle Fashion has the largest direct-run fashion footwear retail network in China. The offline retail network consists of 8,361 direct-run stores across the country;
In January 2024, Belle Fashion obtained the Level 4 Enterprise Level Certificate of Data Management Capability Maturity Assessment Model (DCMM, led by the Ministry of Industry and Information Technology, the first national standard and the most famous data management evaluation standard for companies in various industries). It is the only consumer retail company among nearly 100 enterprises at level 4 and above.
Belle Fashion's diverse portfolio of 19 core brands includes 12 private brands and 7 partner brands. We offer a variety of brands of women's, men's and children's footwear, apparel and accessories, covering all of the company's major fashion styles, including fashion trends, functional leisure, sports and vitality.
Belle Fashion's top five brands, BELLE, TATA, STACCATO, TEENMIX, and BASTO are the company's own footwear brands. The top five brands together accounted for about 63% of the company's total revenue for the years ended 2022 and February 28, 2023, and for the nine months ended November 30, 2023.
Belle Fashion mainly generates revenue from offline channels, and the vast majority of it is sold at its own stores. The revenue share of the company's online channels has been rising. In addition to traditional e-commerce sales, Belle Fashion began live streaming business in 2018. As of November 30, 2023, the company has cooperated with more than 120 KOLs, set up an internal live streaming team of about 275 people to conduct live broadcasts, and has a dedicated live streaming studio of more than 1,000 square meters.
Shareholder structure
According to the prospectus, Belle Fashion held 100% of the company's shares through Belle Brands, in the shareholder structure before listing, Belle International, which is ultimately controlled by Muse Holdings.
Muse Holdings' shareholders include:
Wise Man Venture (indirectly owned by some directors and his executives), holding 46.36% of the shares;
Gao Lin Investment, through Hillhouse HHBH, holds 44.48% of the shares;
Dinghui Investment, through SCBL, holds 9.16% of the shares;
Directors and Executives
Belle Fashion's board of directors consists of 8 directors, including 2 executive directors (Mr. Sheng Fang, Mr. Guo Yaodong), 3 non-executive directors (Mr. Yu Wu, Ms. Weng Wanjing, and Ms. Hu Xiaoling), and 3 independent non-executive directors (Mr. Ye Guanrong, Ms. Xu Min, and Ms. Choi Sui Yi).
In addition to the executive director, senior executives include Mr. Hu Bing, Senior Vice President, and Mr. Zhu Guangxian, Vice President.
Company performance
According to the prospectus, in the past fiscal year 2022, fiscal year 2023, and the first nine months of fiscal year 2023 (the fiscal year ends at the end of February every year), Belle Fashion's revenue was RMB 23.51 billion, 19.210 billion and RMB 16.112 billion, respectively, with corresponding net profit of RMB 2,735 billion, 1,257 billion and RMB 2,058 billion, respectively.
Intermediary team
Belle Fashion's IPO intermediary team mainly includes: Merrill Lynch and Morgan Stanley as co-sponsors; PricewaterhouseCoopers as its auditors; Junhe and Jiali are the company's Chinese lawyers and the company's Hong Kong lawyers respectively; Haiwen and Fuerde are their Chinese lawyers and Hong Kong lawyers respectively; and Frost Sullivan as independent industry advisors.
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