IPO purchase proposal:

The company mainly designs, markets and sells men's clothing, footwear and accessories of Cabbeen Lifestyle and Cabbeen Urban brands. According to Frost Sullivan's statistics, the future development of urbanization in China will lead to the sinking of consumer goods channels, and there is more room for growth in second-to fourth-tier cities in the future. With the increase of consumers' disposable income, China's per capita menswear consumption is expected to grow at a compound annual rate of 15.8 percent from 2012 to 2016, and will double to 1418.6 yuan by 2016. According to retail statistics, the size of China's fashion and leisure men's wear market increased from 37.7 billion yuan in 2007 to about 77.3 billion yuan in 2012, with a compound annual growth rate of about 15.4 percent. It is expected to reach about 151.1 billion yuan in 2016, with a compound growth rate of about 18.3 percent. The company's main competitors include Jack Jones, left Bank, GXG, Mark Warfield and so on. In terms of 2012 retail revenue, the company's market share of fashion and leisure men's wear is about 2.7%, while the fashion and leisure men's wear market accounts for about 16.5% of China's overall men's wear market, and the company's market share ranks third. According to the market penetration statistics of hundreds of mid-and high-end department stores, the company ranks second after Jack Jones. According to a survey of 2448 respondents in Torfrost Sullivan and first-tier, second-and third-tier cities across China, 16.2 per cent of respondents first mentioned "Cabbeen", ranking second among the brands surveyed, after Jack Jones, which is roughly in line with brand loyalty. Revenue growth in 2012 was significantly lower than in 2011, with revenue falling 21% in the first half of 2013 compared with the same period a year earlier. The company's full-year net profit in 2012 is 130 million yuan. According to the prospectus, the 2012 earnings per share is 0.19 yuan, and the forecast valuation is 11 times according to the share price of 2.53 Hong Kong dollars, which is in the industry average valuation range, and the valuation level is not high. In addition, the company ranks high in the leisure men's wear market, and the product design ability is strong. The company basically completed the inventory removal in the first half of 2013. The launch of new products in the second half of the year and next year will have a positive impact on the company's profitability, so it is recommended to participate in subscription.