Swimsuit "Boss" HOSA International Landing Port &Nbsp; Accelerate Nuggets Market Segmentation

HOSA International announced public offering in December 6th, issuing 400 million new shares worldwide.

Of these, 10% (40 million shares) were publicly available in Hongkong, with HK $1.6 in stock and 2000 shares per hand.

It is estimated that the net contribution of HOSA international will be HK $570 million.

The shares were subscribed at 12 noon on December 9th and listed on the Hongkong stock exchange in December 16th.

Merrill Far East is its sole sponsor.

With swimsuit as its core product, HOSA international, which has been developing rapidly in recent years, aims at indoor sports such as swimsuit and fitness yoga in its huge market share.

As it goes public, it also brings the attention of the capital market to a subdivision of the indoor sports apparel (including swimsuit, fitness yoga suit and sports underwear), which is typically represented by bathing suits.

According to statistics, the annual growth rate of domestic sports apparel industry in 2007 was 30.5% in -2010 and 3 billion 460 million yuan in 2010.

According to the forecast of Sullivan, China's indoor sportswear market scale will reach 10 billion 160 million yuan in 2015, and the compound annual growth rate will be 24% in 2010 -2015.

Following men's suit, business casual men's wear, shoes,

In the first half, business revenue exceeded 300 million, an increase of 156.1% over the same period last year.

HOSA international main HOSA TM brand, with the 2010 factory sales figures, it is currently the largest indoor sports apparel brand enterprise.

Its main diversified high-end indoor sports apparel products, including water sports clothing, fitness yoga suit, sports underwear and accessories four major categories.

Its sportswear includes men's and women's swimsuits and beaches.

Its main consumer group is a 20-40 year old urban white-collar worker who advocates a healthy lifestyle and is willing to pay high price for sports functional, comfortable and fashionable indoor sports apparel products.

In 2008, 2009 and 2010, HOSA's international business income was 204 million 600 thousand yuan, 159 million 200 thousand yuan and 347 million 800 thousand yuan respectively.

Its operating profit in 2008 and 2009 was 28 million 200 thousand yuan and 28 million 600 thousand yuan respectively. It is worth noting that in 2010 its profits increased to 94 million 400 thousand yuan.

As of June 30, 2011, HOSA international business.

According to the category, the revenue of HOSA TM water sports products in the first half of 2011 was 137 million yuan, an increase of 114% compared with 64 million yuan in the same period last year. The number of HOSA TM water sports products sold was 2635176, up 4.1% from 2531478 in the same period last year.

One of the main reasons for the growth of swimwear products is the further expansion of the domestic sales network and retail channels, and the two is the increase in product prices.

Statistics show that as of June 30, 2011, the average selling price of HOSA TM water sports products was 52 yuan, up 105.5% from 25.3 yuan in the same period last year.

In the first half of 2011, the income of fitness yoga products was 78 million yuan, an increase of 308.5% from 19 million 100 thousand yuan in the same period last year, and sales volume was 1139212, up 203% from 376032 in the same period last year.

The income of sports underwear products was 68 million 600 thousand yuan, an increase of 125.7% over the same period last year, and sales of 853197 yuan, an increase of 25.9% from 677580 in the same period last year. The average selling price was 80.4 yuan, up 79.5% from the 44.8 yuan in the same period last year.

The income of accessories products was 18 million 700 thousand yuan, an increase of 311% over the same period last year of 4 million 600 thousand yuan.

It can be seen that swimwear products are still their main business, accounting for 45.32% of the total sales in the first half of the year. The proportion of yoga fitness products and sports underwear accounted for 25.8% and 22.7% respectively.

For the rapid growth of performance in recent two years, HOSA International

Moreover, from the trend of the past few years, domestic consumers are increasingly admired for these healthy sports activities such as indoor sports and fitness. This reflects a change of lifestyle. The consumption demand caused by the change of lifestyle will bring the growth of indoor sportswear consumption.

All these will provide sustained support for HOSA's future international growth.

HOSA international profits in recent years

Gross profit margin 63.9% gross profit in the first half of the year surged 245.6%

The gross profit of HOSA TM products was 62 million 300 thousand yuan in 2008, and increased by 1.1% to 62 million 900 thousand yuan in 2009, mainly due to the decline of raw material purchase price and the change of enterprise product mix.

In 2010, a sharp increase of 169.3% reached 169 million 400 thousand yuan, due to the overall sales growth in 2010 and the increase in the average selling price of water sports and sports underwear products.

As of June 30, 2011, the gross profit of HOSA TM products was 193 million 200 thousand yuan, up 245.6% from 55 million 900 thousand yuan in the same period last year, which is also attributable to the increase in sales and the increase in the average selling price of products.

Among them, the gross profit of water sports products in the first half was 86 million 900 thousand yuan, an increase of 216.1% compared with 27 million 500 thousand yuan in the same period last year; the gross profit of fitness yoga products was 51 million 900 thousand yuan, 393.6% higher than that of the same period last year; the gross profit of sports underwear products was 41 million 500 thousand yuan, 157.4% percentage points higher than that of the same period last year; the gross profit of accessories products was 12 million 800 thousand yuan, a substantial increase compared with the 1 million 700 thousand yuan in the same period last year.

In terms of gross profit margin, the gross profit margin of HOSA TM products in 2008 was 30.4%, increased to 39.5% in 2009 and increased to 48.7% in 2010.

As of June 30, 2011, its gross profit margin continued to rise to 63.9%, compared with 47.3% in the same period last year.

The main reason for the sharp increase in gross margin since 2010 is that enterprises have improved their product mix and improved the proportion of high-end products with high quality and high quality.

According to the category, up to the first half of 2011, the gross profit rate of water sports products was 63.5%, compared to 43% last year, while the gross profit rate of fitness yoga products was 66.6%, compared to 55.1% last year. The gross profit margin of sports underwear products was 60.5%, 53.1% last year, and the gross margin of accessories products was 68.2%, compared with 38.1% last year.

From the perspective of sales cost, the sales cost in the first half of the year was 109 million 100 thousand yuan, an increase of 75.6% over the same period last year, and the cost increase was mainly due to the sales growth of enterprises. The cost of sales increased by 75.6% yuan.

Among them, the cost of raw materials in the first half was 86 million 500 thousand yuan, compared with last year.

By contrast, the growth rate of HOSA's international sales costs is much lower than that of sales revenue and gross profit.

In addition, from 2008 to June 30, 2011, HOSA International's advertising and publicity expenses accounted for about 4%, 3%, 2.6% and 4.3% of total revenue respectively.

In the future, it will increase advertising and marketing expenses to further enhance brand and market positioning.

The data also show that HOSA international has a small amount of foreign trade business, mainly undertaking purchase orders from foreign trade companies or wholesalers, and sells products to Southeast Asia, North America and Europe.

In 2008, 2009, 2010 and the first half of 2011, it had 47, 30, 35 and 1 overseas customers respectively.

HOSA international sells mainly low-end products overseas.

During the same period, the average selling price of swimsuit products abroad was 20.5 yuan, 22.4 yuan, 17.8 yuan and 11.3 yuan respectively. The average selling price of fitness yoga products was 18.1 yuan, 50 yuan and 23.6 yuan respectively, among which the fitness yoga products in the first half of 2011 had no overseas sales.

Besides, its sports underwear products have no foreign trade business.

Since 2011, the overseas sales of HOSA international have only performed the selected overseas purchase orders.

As the main focus is on the domestic market, the proportion of HOSA's future foreign trade will continue to decline.

The 35% expansion of distribution network is expected to exceed 1200 stores by the end of the year.

According to the HOSA international notice, the raising fund assumes that the excess allotment rights have not been exercised. After deducting the underwriting Commission and other estimated expenses payable by the enterprise, and according to the HK $1.60 per share, the net capital contribution is estimated to be about HK $570 million, mainly for the following items:

About 35% (or HK $199 million 500 thousand) of fund-raising is used for distribution network expansion.

It is expected to expand the distribution network of enterprises before the end of 2015, and support the first class distributors to open new retail terminals to upgrade the existing retail terminals.

About 50% of these will be used as support for shop decoration fees and promotional materials for the establishment of new retail terminals for first class dealers, as well as rental allowance for selected stores. About 50% will be used as a support for reshaping store images for first tier dealers, expanding store space for existing retail terminals and increasing the categories of products offered, such as renovation fees, shop display materials and billboards.

With this support, HOSA international plans to open more than 50 HOSA retail terminals operated by first class distributors or two level operators, so that the number of HOSA retail terminals will increase to more than 1200 by the end of 2011, covering 28 provinces and municipalities.

In the future, HOSA international will also take advantage of its leading position in the first tier cities, and actively consolidate its position in the second tier and three tier cities, and expand a wider distribution network.

About 25% (or HK $142 million 500 thousand) of fund-raising will be used for marketing and publicity to further enhance the brand image of enterprises.

About 40% of them will be used to publicize major TV networks and websites, authoritative sports and fashion magazines and other print media, and to set up billboards on MTR stations and highways. About 35% will be used to establish flagship stores in major cities, distribute marketing and publicity materials, participate in trade exhibitions and organize promotional campaigns to attract new distributors; about 15% will be used to sponsor popular sports and fashion events and other public relations activities; about 10% will be used for professional services in advertising, marketing and publicity activities.

In addition to these two main purposes, about 15% (or HK $85 million 500 thousand) of the fund-raising will be used to expand production capacity, including the addition of new production lines for water sports, fitness yoga and sports underwear products.

About 10% (or HK $57 million) will be used for research, design and development activities, such as recruiting professional designers and research, design and development staff; designing and consulting companies; Upgrading Research and design of future plans and use of funds and development platforms, further enhancing the design and technical capabilities of enterprises; and developing new products with external outsourcing manufacturers to supplement product categories.

About 5% (or HK $28 million 500 thousand) will be used to further develop and improve supply chain and information management systems, such as DRP, ERP and CRM systems to further improve the operational efficiency of enterprises.

The remaining 10% (or HK $57 million) will be used to supplement liquidity and general corporate purposes.

Though starting from the very small subdivision industry of swimsuit, it is obvious that with the successful landing of the capital market, with the implementation of the series expansion plan, HOSA international has shown to the industry that a small industry can also make a great contribution.