On July 27, due to the successful completion of the handover of controlling shares, Bosslon bucked the trend and soared 40.85%.
According to Bosslon’s latest announcement, the controlling stake has changed hands to a consortium formed by Feifei China, a company controlled by the Li Ning family, and Luo Zhengjie, a descendant of Luo Dingbang.
Extraordinary China Shareholders Meeting After unanimously passing the acquisition, Bossini announced a number of personnel changes on July 24, with a number of extraordinary China executives joining Bossini.
Qian Manjuan, wife of former Bossron major shareholder Luo Jiasheng, resigned as chairman of the board of directors and was succeeded by Victor Herrero; Zhang Zhi was appointed as the company’s co-chief executive; and company executive Director and Chief Executive Officer Mai Dechang has been re-appointed as Co-Chief Executive Officer of the company.
Zhang Zhi is currently the chief financial officer and company secretary of Feihua China. Zhao Jianguo is currently the consumer goods business director of Feihua China. Victor Herrero served as Guess Inc. Chief Executive Officer and Director, and also serves as senior advisor to Viva China.
Li Ning sells herself at 30% off
On May 15, a well-known Hong Kong Clothing brand Bossini and Viva China issued a joint announcement that Viva China, through its controlled Longyue Development Co., Ltd., acquired approximately 1.093 billion shares of Bossieron from Luo Jiasheng, accounting for approximately 66.60% of the total issued share capital of Bossieron. %, the price is approximately HK$46.62 million, equivalent to approximately HK$0.043 per sales share. The purchase price represents a substantial discount of approximately 70% from the previous day’s closing price.
After the acquisition is completed, Feihua China and Luo Jiasheng’s nephew Luo Zhengjie hold 80% and 20% of the shares of the consortium respectively.
As soon as the news came out , Bossron’s stock price once soared 95% that day, hitting a new high in the past year. As of the close, its increase narrowed to 51.35%, and the latest total market value was approximately HK$300 million. Since 2015, Bossron’s stock price has been fluctuating and declining, and its market value has shrunk by more than 60% in the past five years.
According to Wind data, Li Ning himself serves as the chairman and CEO of Feihua China and is its actual controller. In other words, Boshilong will be indirectly taken over by Li Ning.
Once known as the “Big Three” of fashion clothing together with Baleno and Giordano, Bossieron was founded in 1987 by Hong Kong’s “Knitting King” Luo Dingbang and went public in 1993, becoming At that time, it was one of the most high-end and representative clothing retail groups in Hong Kong and Macau.
Loss of over 100 million yuan in a single month
As the economic environment fluctuates Intensified, coupled with the fierce impact of ZARA, H&M and other fast fashion brands and e-commerce, Bossron’s performance has gradually declined since 2014.
Wind data shows that Bossron’s annual performance in 2018 turned from profit to loss, with net profit plummeting by more than 600%. In 2019, net losses continued to expand by more than 100 million yuan.
In the first half of the fiscal year ending in December 2019, sales fell 20% year-on-year, with a net loss of over HK$80 million, accounting for nearly 60% of sales in the Hong Kong and Macau markets. The decline was the largest, approaching 30%.
Boussilon stores in the mainland are also rare. As of the end of 2019, there were only 180 stores in the mainland market, and all stores in first-tier cities such as Beijing and Shanghai have been closed. .
Entering 2020, under the influence of the epidemic, retail activities in Hong Kong and other core markets where the company operates have almost come to a standstill. Bosson’s losses have further increased. The loss for the 10 months ended April 30, 2020 was approximately HK$195 million (unaudited).
On June 17, Bosslon issued a profit warning. For the 11 months ending May 31, 2020 (unaudited), the company expected to lose approximately HK$295 million to Between HK$325 million, mainly due to impairment provisions for property, plant and equipment and right-of-use assets.
This means that the company lost approximately HK$101 million in the first four months of 2020, and lost between HK$100 million and HK$130 million in May 2020.
The decline of Hong Kong-owned brands and the rise of Chinese national brands
Boussilon is not the first A Hong Kong-owned clothing brand selling shares.
In 2017, Giordano granted 67.48 million share options to certain qualified participants to subscribe for a total of 8.9 million new ordinary shares with a par value of HK$0.05 each in the company’s capital. shares, with an exercise price of HK$4.05 per share.
In August 2018, Rising Sun Enterprise announced the sale of its mainland retail brand business, the Jeanswest brand, for HK$800 million, and divested the loss-making Jeanswest China business. In 2019, Rising Sun Group successively divested Jeanswest’s businesses in Australia and New Zealand. In addition, JeansWest AustraliaYa Company also announced that it had entered bankruptcy liquidation in January 2020.
In December 2019, Esprit’s parent company Esprit Global established a new company through a joint venture with Mulsanne Group through its wholly-owned Wancheng Resources Co., Ltd., with a joint venture amount of approximately 100 million yuan. , engaged in the operation of clothing, clothing accessories and other ESPRIT businesses that may be agreed upon by the joint venture parties. Mushang Group invested 60 million yuan to hold 60% of the equity; Wancheng Resources invested 40 million yuan to hold 40% of the equity.
Compared with the decline of Hong Kong-owned brands, Chinese national brands are on the rise.
After experiencing a trough period for several years, Li Ning, the acquirer of Bosson, began a strong recovery in 2015 and continues to this day.
In 2019, Li Ning achieved revenue of 13.88 billion yuan, a year-on-year increase of 31.8%; net profit attributable to the parent company was 1.50 billion yuan, a year-on-year increase of 108.3%; according to Euromonitor data, Li Ning mainland China The market retail sales share is 6.3%, ranking second among local brands and fifth in the industry.
With the assistance of Guochao brand strategy, Li Ning’s stock price has been running wildly in the past two years. It has risen by 193% since the beginning of 2019, with a market value of up to HK$64 billion.
Anta Sports, which has been shorted by short-selling institutions many times, is even more proud of domestic clothing brands with a market value of nearly HK$200 billion.
Anta currently has 13 brands, three major series of brand groups, a professional sports group with ANTA as the main brand, a fashion sports group with FILA as the main brand and an outdoor Sports group. Among them, FILA is an Italian sports brand. In 2009, Anta acquired China’s trademark use rights and franchise rights from Belle for HK$600 million. It did not turn a profit until 2014, and has since made an important contribution to Anta’s performance.
In recent years, the number of FILA stores has increased year by year, from 200 in 2010 to 1,951 in 2019. In 2019, FILA brand revenue increased by 73.9% to 14.77 billion yuan, accounting for 43.5% of Anta’s total revenue, close to Anta’s main brand revenue accounting for 51.4%, becoming one of the major brands for Anta Sports performance growth. Not only that, FILA’s gross profit margin is as high as 70.4%, which is much higher than the main brand’s 41.3%.
After acquiring FILA, Anta continued to acquire other foreign high-end brands on a large scale. Since 2014, it has successively acquired SPRANDI, a British urban walking brand, Kolon Sport, a high-end outdoor mountaineering brand from South Korea, and Amer Sports, a Finnish high-end sporting goods brand.
Amer is known as the “Hermès” of outdoor sporting goods. Its performance before the acquisition was stable, with a compound annual growth rate of 7% in revenue from 2009 to 2018. In 2018, its net revenue was Profits increased five times compared with 2009.
Anta Sports’ stock price has also risen by 500% in the past five years, and has risen by 100% since the beginning of 2019 alone.