Global Brand Management GroupOnion Group (OG.US) $In the midst of its initial public offering, the company expects to issue 12.5 million American depositary shares (ADS), with the underwriters entitled to a total of 1.875 million ADS oversubscribed shares (equivalent to 1 common share per ADS) in the price range of7.25-9.25 USD / ADSIs expected to be officially listed on the New York Stock Exchange on May 7.

It is reported that Onion Group was founded in 2015, and its main business includes global brand incubation and cross-border direct sales of e-commerce. As of December 31, 2020, the company has reached deep cooperation with more than 4000 brands around the world, and the selection of products spans 43 countries and regions around the world. Provide consumers with fast fashion products including beauty makeup, health care, child care, personal care and so on.

In terms of total revenue in 2019, Onion Group is the tenth largest life brand platform in China, and it is the only one-stop life brand platform in China with integrated development, marketing and distribution functions. At the same time, among the cross-border e-commerce platforms of 30 lifestyle brands in China, the company ranks fifth in terms of GMV generated by online cross-border retail in 2019, with a total market share of about 0.7 per cent.

From 2018 to 2020, the Onion Group's revenue was 1.805 billion yuan, 2.851 billion yuan and 3.811 billion yuan respectively, with a compound annual growth rate of 45.31 percent from 2018 to 2020. The net profits recorded in the same period were-95 million yuan, 102.8 million yuan and 208 million yuan respectively, an increase of 102.3% in 2020 compared with the same period last year.

From 2018 to 2020, the total GMV generated by the Onion Group's platforms was 1.782 billion yuan, 2.904 billion yuan and 4.001 billion yuan respectively. Among them, the proportion of GMV from brand partners and GMV from private brands increased significantly compared with 2018.

So far, the company's cross-border e-commerce platform O'MALL has more than 691000 active KOC. Through more than 60, 000 SKU and millions of users' online interactive data, its social platform and tools cover a large number of accurate, high-net-worth fashion consumers, and build accurate brand incubation tools.

The company has reached in-depth cooperation with more than 4000 brands around the world, covering 43 countries and regions around the world, with more than 60, 000 SKU;. In addition, through cooperative production bases in Europe, Japan and South Korea, and developing products with well-known laboratories and research institutions in various countries, the company now has 21 own brands, among which the Japanese life aesthetics beauty brand TENKOU RYUUGI "Tiangong Liuji" has sales of more than 10 million yuan in half a year.

Onion Group has established more than 40,000 square meters of overseas shipping warehouses in five countries around the world, and has eight domestic warehouses in China, including constant temperature transfer warehouses in Hong Kong and nearly 50,000 square meters of bonded import warehouses in Nansha, Guangzhou.

Through strategic cooperation with logistics companies at home and abroad, the company has achieved efficient distribution of goods. Goods from transit warehouses in Hong Kong and bonded warehouses in China can be delivered to consumers in 24 hours at the earliest, while overseas direct mail goods reach the mainland in about 5 days, while the average time of cross-border online retail in China is about 5 days and 15 days respectively.

In terms of industry, the fashion brand market, the largest and fastest-growing consumer goods category in China, has grown from 6.7153 trillion yuan in 2015 to 10, 62.4 billion yuan in 2019, and is expected to grow at a compound annual growth rate of 9.8 percent to 2.0605 trillion yuan in 2024.

In terms of fund-raising purposes, the Onion Group intends to use about 50 per cent of the net funds raised by the IPO to cultivate its own brand and develop strategic partnerships; about 20 per cent will be used to expand marketing and distribution channels to help further achieve channel diversity; about 15 per cent will be used to strengthen technology research and development capabilities; and about 15 per cent will be used to supplement the company's daily working capital and other uses, including strategic investments and mergers and acquisitions.