Night Shop share Love night Paya The scenery of Hong Kong can not hide the two major worries

Recently, a joke has been circulating in Hong Kong's research circles: "Have you Been to Lan Kwai Fong?" "That is the new shares Magnum Entertainment (2080.HK), hereinafter referred to as Love Night Po, the company head of Hong Kong's first night shop shares of the halo, nature attracts countless eyeballs all over the world." The 3,500 times-fold "oversubscribed King" does not seem to be available to other dailyplanet companies, except for Australia's world-famous erotic listing company. What is called the scarcity of goods is expensive, the shortage of things do not worry about selling. Love Night PO began its IPO on January 13 and plans to raise funds of HK $84 million to HK $126 million, of which 90% are international placements and 10% are for public sale. The first day of the IPO was unusually hot, with the portion of the public offering oversubscribed 860 times times, up to 3,500 times times the last day. It replaces the Milan station (1150.HK), which was listed in 2011, as the "oversubscribed King" in the history of Hong Kong equities. According to the news, the Love Night PO public offering subscription number of about 100,000 people, even the international placements, also received 500 times times oversubscribed. Major shareholder is Hong Kong financial giant according to the prospectus disclosed that the main shareholder of Yemaolin is Hong Kong businessman, who owns 72% of the shares. Mr Ip is a prominent figure in the Hong Kong financial community because his other identity is the chairman of the Hong Kong Yiu-Chung Securities (1428.HK) and holds 73.36% shares. Yemaolin born in a poor, young, a stall for a living, by the clothing business, in 1985, the founder of the Yao Securities. In the last 5 fiscal year, the company has been operating well, with net profits rising from HK $21 million to HK $92 million. Because of Yemaolin's superior commercial sense of smell, he was nicknamed "Money Hunter". 2007, Yemaolin founded the first nightclub--beijing Club since the establishment of a total of three nightclubs, the total construction area combined with about 3000 square meters, is the Hong Kong club-style entertainment business in the largest. Although the concept is very difficult to cover rent pressure night shop concept is good, but it is difficult to conceal the rising pressure of the rental of the site. Love Night Po has no real estate, three nightclubs are rented to a third party. As at 2011, 2012 and March 31, 2013 and the End of August 2013 (five months), the rents were HK $8.9 million, 20.6 million Hong Kong dollars, HK $30.3 million and HK $13.8 million, accounting for 12.7%, 15%, 17.4% and 19.2% of current revenue. Measured at the end of August 2013, the profit will be reduced by HK $1.15 million if the rent rises by 10% per cent. Three stores in the most profitable Magnum club, which accounts for more than 50% of the total revenue. The Magnum Club opened in 2011 and the venue lease expired on August 19, 2015. Since 2011, commercial property rentals in Hong Kong have risen by more than 40%. If the contract is renewed according to the latest price,Profitability will face great challenges. The lease for another billion club is March 15, 2013 to March 14, 2014. According to the Jones Lang LaSalle, commercial rents in Hong Kong rose by more than 5% in 2013 years. Compliance risks remain to be admitted or not, nightclubs are recognized as the preferred distribution channel for yellow betting drugs. In fact, the world's most romantic places for the right and wrong, and therefore, no nightclub is willing to go public offering, lest provoke to the media spotlight. During the love of the Night PO prospectus, there was a criminal investigation by the Hong Kong police that the management of the PO was involved in sexual and money laundering activities. Despite the denial of the matter, Ye's boss stressed the "rapport" with police relations. Saying, do you often walk along the river? In the event of a day when management is invited by the Hong Kong police to taste coffee, how can the minority shareholders be entangled? (The author is Anxin International China District Investment Advisory director, Hong Kong Securities licensee)