China Achievement Uniqlo

Uniqlo, a clothing brand, with the unique "Uniqlo model", fast sales company, a humble small company in just 20 years quickly developed into an international giant, and its boss Yanai is also a 103.7 billion Hong Kong dollar worth, boarded the throne of Japan's richest man. In the downturn in the retail industry, the group will be introduced in a low-key two-degree listing in Hong Kong, while again enriching the expansion of the capital chain, the rapid growth of the group can continue its earlier myths?

IPO not financing

Following the "Uniqlo model", the company has returned to Hong Kong for listing. It is reported that the fast-selling shares were first listed in July 1994 on the Japanese Hiroshima Stock Exchange, then in April 1997 in the second board of the East Exchange, and then in February 1999 to Tung to the main board listing. According to the listed documents released by the fast Sales company, the company will be listed under the premise of not issuing shares or raising funds, select the main board of the Hong Kong Stock Exchange to be listed as the second listing, involving 500 million pre-supporting securities, 300 copies per hand, each of the Hong Kong pre-Depository securities representatives have 0.01 shares of ownership rights and interests.

In this regard, March 5, Uniqlo related officials told reporters that because there is no funding needs, so there is no plan to issue new shares or raise funds, although the future may be considered, but there is no specific plan to raise funds in Hong Kong. "The choice of HDR listing is due to the different trading systems in Japan and Hong Kong (Japan is paperless trading and Hong Kong has to issue physical shares), it is difficult for listed Japanese companies to directly listed in Hong Kong." However, although Hong Kong can be viewed as a second listing, the first listing of the main board on the Tokyo Stock Exchange will remain unchanged. At present, the company's market value is about HK $282 billion. Uniqlo related people to reporters.

What is the purpose of this special trip to Hong Kong for retail companies that have been steeped in Japanese capital markets for many years? Gangzakian, chief financial officer of Schindler, explained that the main reason for the group's listing in Hong Kong was to enhance the visibility of the fast-selling group, excellent Uniqlo and its brands in the booming economy of Greater China and Southeast Asia, and as the business developed, Can further attract more investors globally.

So, since the choice of listing, and why not direct sale of new shares, instead of taking circuitous tactics, the issue of HDR? A Hong Kong practitioner told our correspondent: "HDR, ADR are very common way of listing, because does not involve new financing, so do not need regulatory approval, as long as the normal listing through the hearing can be directly listed, Almost all of the stocks in Hong Kong have pre-backed securities in the US (ADR). However, he adds that HDR is not a big part of the mature ADR market in the United States, "in short, Hong Kong investors have little interest in equities outside China, and, similarly, ETFs have poor turnover in the Hong Kong stock market." ”

The reporter noted that at present, Hong Kong has 4 HDR, the remaining 3 only for coach, think Bai benefits and Vale, turnover has been depressed. Enquiries about the Thursday transaction volume found that the value of the day trading volume of only 67,000 Hong Kong dollars, Vale's turnover is only HK $11000. By contrast, the listing of two days later, Uniqlo hand over the report card is not satisfactory. March 5, fast sales to HK $28.6/share listing, the highest after the listing of HK $36, but the final closed to HK $28.9, the daily turnover reached HK $133 million. The next day, Schindler reported a HK $29.4 turnover of HK $41.8 million, which shrank by half on the day of the listing.

How to follow up the expansion fund

Is the fast selling group really not bad money? In the company's listing document released in February this year, our correspondent has found that the group has a free cash flow of 35.538 billion yen for the 2013 fiscal year ended August 31, 2013. In this respect, Beijing University Consulting management partner Tauwensheng in an interview, frankly speaking, from the current point of view, the rapid sales group's capital demand is not strong, the purpose of its listing, as the group said, is to increase the Greater China region and even Southeast Asia's brand awareness. Data show that the growth rate of net sales in the last two fiscal year is 18%, among them, the overseas Uniqlo business during this period sales growth was strong, the annual composite growth rate of 63.7%, of which China, Hong Kong, the mainland and China's Taiwan market revenue and earnings growth performance, the three most recent quarterly results were more than expected. At present, China is Uniqlo's largest overseas market, in addition, China is also responsible for Uniqlo 90% production tasks, annual production of nearly 600 million pieces of products. At present, China's position in the fast-selling company is very important, even Yanai is also said in public, "Uniqlo's success is half of the Chinese people." ”

The market is very big, the competition degree is also self-evident. In addition to Uniqlo, Gap, Zara, h&m and other fast fashion brands are also eyeing the Chinese market. In the case of Gap, the number of stores in China has reached 81 since it opened its first store 3 years ago and is expected to surpass hundreds this year. Penning, the global senior executive vice president of Uniqlo parent, said that by the end of last May, Uniqlo had opened 200 stores in more than 50 cities in China, and that the brand would take root in the Chinese market and strive to open 80 to 100 new stores each year.

"In the premise of increasing competition in the first-tier cities, the brand is expanding to the two or three-line city, and the channel sinking has become an inevitable trend." Tauwensheng points out that because Uniqlo stores in China are direct stores, the subsequent expansion of capital requirements higher, in the future, the brand is likely to eventually turn to the IPO financing.

For the fast sales of Hong Kong stock market, but also the industry to the reporter analysis that even if not to issue new shares do not raise funds, only stocks in circulation, the company can still get the opportunity to buy, the listing after the acquisition of funds more convenient, can issue new shares, convertible bonds and other means of fund-raising. "Uniqlo's brand has entered China, and in the process of expanding to the two or three-line city, the cheaper price may sink faster." "Nine school consulting management general manager Shaoligang in the interview with our correspondent said," for Yu Xun sales, rent may not be too big, because many shopping malls in order to attract foreign brands, will deliberately reduce rents, but the most important challenge, will be the fierce competition in the industry. ”