Jinli Group Holdings Ltd (金麗集團控股), which runs two apparel and shoe brands in China, is set to list on Taiwan’s Emerging Stock Market (興櫃市場) on Wednesday next week, ahead of its primary listing on the Taiwan Stock Exchange (TWSE) by the end of this year.
Lead underwriter Cathay Securities Co (國泰證券) said Jinli Group’s initial public offering price on the Emerging Stock Market would be around NT$60 per share.
“We expect to raise brand awareness [about the group] in Taiwan through the primary listing on Taiwan’s securities market and recruit more Taiwanese fashion design talent,” said a group official who requested anonymity.
Founded in 1998, Jinli Group runs two medium-priced casual clothing and shoe brands — G-Apple and e.t — focusing on sales in China’s third and fourth-tier cities.
For the first nine months of the year, the group posted a net profit of NT$643.35 million (US$22.03 million), or NT$6.26 per share — equivalent to about 85 percent of its full-year net income of NT$750.76 million last year, group financial data showed.
Historically, the group’s earnings usually peak one or two months before the Lunar New Year holiday, backed by strong consumption sentiment. This means that fourth-quarter profitability would stay high.
The official said the group was not considering expanding in Taiwan in the near term, but would continue to focus on developing the Chinese market.
The two brands are sold in more than 700 outlets in China, with various sole agents in charge of their sales in Beijing and 17 provinces, the group said in a statement.
This business model, along with its strategies of controlling expenses and maintaining low inventories, has helped the group maintain steady profits and gross margins, the statement said.
Its gross margin was 35 percent in the first half of the year, it said. Its apparel business had a gross margin of 35 to 40 percent, while its shoe business had a margin of about 30 percent.
Consolidated revenue was NT$3.85 billion last year, with apparel and shoes accounting for 50 percent each, data showed.