Sports Brand Is No Longer Just For Business, But Also For The Operation Of Financial Technology.

With the domestic sports industry ushered in the golden period of development,

No longer just fight business, capital technology boom is also running.

Yesterday, the two major sports brands announced new capital operation trends one after another.

Limited by Share Ltd (hereinafter referred to as "noble bird") invested 100 million yuan to invest in the mobile gaming industry;

Sports Products Co., Ltd. (hereinafter referred to as "PEAK") has defined the privatization plan.

Capital operation is frequent.

Similar to the hot sports industry in China, sports brands are frequently involved in capital operation.

In yesterday's announcement, PEAK announced that Hsu Sports Co., Ltd. issued a privatization offer to Peak Sport Products Co Limited: it plans to purchase publicly issued external circulation shares at a price of HK $2.6 per share, involving 927 million 300 thousand shares, and expects privatization funds to be HK $2 billion 450 million.

It is reported that privatization accounts for 38.81% of PEAK's issued share capital.

Since the concerted action of Hsu Sports Co., Ltd. has already held 61.19% of the issued shares, after the implementation of the offer, PEAK will cancel the card on the stock exchange, which also confirms the previous industry's rumors about its possible privatization.

On the same day, VIP bird also issued a notice, in order to promote the development of the company's sports industry, invested 100 million yuan to Shenzhen Star Technology Co., Ltd. (hereinafter referred to as "star friend technology") to increase capital, after the completion of the capital increase, the bird will hold a 45% stake in Xingyou technology.

The industry believes that the two companies are frequently involved in action and are related to capital operation: PEAK privatization is the return trend of China's stock market in the current overseas listing.

Although the domestic sporting goods industry is hot at the moment, eventually there are growing ceilings. The two companies are concerned about their capital operation at this time.

Cold winter ends and market recovery

A few years ago, due to the overall slump of the apparel industry, the performance of related enterprises focused on sports brands also declined.

Lining's net loss in 2014 was 781 million yuan, and profits fell by 99.2%. In 2013 and 2014, the performance of negative birds increased by 2011-2013, while PEAK's net profit declined for three consecutive years.

The sports brand industry began to recover slowly at the end of 2014.

By 2015, the domestic sports industry began to develop in the golden age. From the annual report performance of each brand, the domestic sports brand has gradually stepped out of the trough and began to achieve performance growth.

Since the end of the two years' performance negative growth, PEAK has also recovered its net profit growth since 2014.

Driven by the Internet thinking, the domestic capital market is more popular for sports industry stocks, but most of the domestic sports brands are listed in Hongkong, including Anta, XTEP, 31st degree, PEAK and so on. Only the A in the A-share market.

According to industry analysis, in the Hong Kong stock market, PEAK's share price is underestimated. On the other hand, for the sporting goods companies, the mainland market has basically recovered. This background can return to the A share market, not only the valuation will be higher, but also the financing will be easier.

Relay capital capture opportunities

The reporter interviewed the head of PEAK company on the privatization reason. PEAK said that since its listing in Hongkong, its share price performance has not been satisfactory. As a leading sporting goods company, the lower share price will affect the reputation of the company and further affect the development of the company's business.

And whether PEAK chose to return to A shares after privatization, PEAK CEO Xu Zhihua said that the company had no plan to return to A shares.

But insiders say PEAK is sitting on the bench in Hong Kong stocks and its value is not optimistic.

On the other hand, the upgrading and outbreak of the sports industry in the mainland will undoubtedly give more room for the development of domestic sports brands. Therefore, it is only a matter of time for PEAK to return to A shares in the future.

Zhang Qingye, a sports industry expert, believes that both sides of the world want to use the sports industry in the golden age of the domestic market to control the capital market.

Because of the international brands such as Nike and Adidas, there are also domestic brands such as Anta and Lining competing for the market. In the capital market, it is difficult to tolerate more brands, and the concentration of brands is constantly improving. Therefore, enterprises want to make greater contributions to the listed companies by making use of the power of the capital market and making diversified development.