Jinli Group Holdings Ltd (金麗集團控股), which has two apparel and shoe brands in China, yesterday saw its shares fall below its listing price of NT$70 on its debut on the Taiwan Stock Exchange.
Shares dropped 0.14 percent, or NT$0.1, to close at NT$69.9 on the local bourse, compared with the benchmark index’s 1.07 percent decline, stock exchange data showed.
Despite a weaker-than-expected debut, the company expressed its optimism on sales performance from the fourth quarter through the next year.
“Business sentiment for China’s retail market may grow next year from this year,” group chairman Chong Chun-lung (莊春龍) told reporters.
The Chinese government is focussing on urbanization and doubling GDP per capita, which may benefit sales momentum for Jinli, which has set up outlets in smaller cities, Chong said.
Chong said the fourth quarter is a traditional peak season for the group’s sales, which may allow Jinli to report a record-high level in consolidated revenue during the October to December period.
Consolidated sales totaled NT$457.85 million (US$15.77 million) last month, up 5.49 percent from a year earlier and are the group’s best-ever monthly sales, its stock exchange filing data showed.
Jinli Group runs two medium-priced casual clothing and shoe brands — G-Apple and e.t — with various agents in charge of sales at 774 outlets in Beijing and 17 Chinese provinces, mainly in third- and fourth-tier cities.
Next year the group expects to open 80 new outlets in two or three new provinces, Chong said.
Meanwhile, the group is considering opening more stores in prime commercial lots and high-level shopping centers in China to raise its brand awareness.
For the first nine months of the year, the group posted a net profit of NT$643.35 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.