Why Did PEAK Sports Choose To Return To The A Share Market?

According to the world clothing shoes and hats net,

In 2017, one of the excellent pcripts was handed over. One of the brands seemed to be a bit quiet. This is the Hong Kong stock market delisting last year, preparing for the return to the A share market.

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Why did PEAK sports choose to return to the A share market?

In the US, China's stock market has been in the A boom for a long time, but few companies actually get back.

In Hongkong, many companies choose to withdraw from the market in order to return to A share trading.

Among them, a sporting goods company is particularly attractive. PEAK sports has been preparing to return to A shares after delisting from the Hongkong stock exchange in November 2, 2016.

In early 2017, PEAK sports held a return to the A share development forum, inviting various capital organizations to help them outline the blueprint for listing.

Entering the 2017, all sports Brand Company have handed in a good mid-term answer.

At the end of August, after the disclosure of the earnings report, Anta sports,

The total market capitalization of XTEP international has exceeded 100 billion yuan. It also has more expectations for PEAK sports.

When China's Hong Kong stocks are queuing up for A, PEAK sports join them.

In May this year, the SFC has made a special statement that it has great particularity to return the A to the stock market, especially the obvious price difference between the domestic and foreign markets and the speculation of shell resources. "We are going deep into the analysis of the possible impact of these enterprises on the return of A shares through IPO, merger and reorganization."

Such an attitude indirectly resulted in the suspension of privatization of stocks in preparation for A, or the backdoor listing after the privatization.

In addition to Focus Media, giant network and so on have already completed the backdoor to A lucky, but later most of the stocks have failed to step on the policy rhythm and so far, "floating".

However, even if it is successfully returned to A, these stocks, especially through the reverse merger and acquisition, will also face the domestic public opinion.

Wuhan University of Science and Technology professor Dong Dengxin previously said, "this is unfair to domestic IPO queuing enterprises, which is arbitrage between the two markets, and it is also a system arbitrage.

In the way of share purchase, the investors in the A share market have no bargaining power, and the retail investors are the final ones.

Some of the listed companies in Hong Kong have also chosen to withdraw from Hongkong and seek to return to A shares because of their valuation and financing problems, and several of them are also related to sports industry, such as Wanda Commercial, Fuli real estate and PEAK sporting goods company.

Because there is a high premium rate between A shares and H shares, the prices of Chinese enterprises in the HKEx are much lower than those in the Shanghai and Shenzhen stock markets, so that these listed Chinese companies in Hongkong are suffering from valuation and financing.

According to UBS's research report, over 2/3 of the two listed stocks in Hongkong and the mainland have a premium of over 50% in the mainland.

PEAK sports's delisting sentiment is based on this. The company thought that the stock price was much different from its industry status and strength, as well as the hot market of domestic sports industry.

Last July 26th, PEAK sports announced that the offeror Xu's sports required the board of directors to privatize PEAK sports through the agreement plan.

According to the plan, the planned shares of each share are exchanged for HK $2.6 cash, including 927 million 600 thousand shares of the planned share, accounting for about 38.81% of the issued share capital of the company, and the offeror needs to pay about HK $2 billion 400 million (about 2 billion 100 million yuan).

Financial summary before PEAK Sports

On the day of the announcement, PEAK sports reported HK $2.41.

The price of 2.6 Hong Kong dollar privatization offers a slight premium.

PEAK sports recently told the ecosystem that in their view, "repurchase price is reasonable and recognized by investors", so its privatization progress has not been greatly hindered.

PEAK back to A, how's it going?

PEAK sports responded exclusively to the ecosystem, saying that the company had been carrying out its internal shareholding structure and has basically completed it. It has contacted about 10 banks and brokerages from Beijing, Chengdu and other places to prepare for listing.

According to the regulations of the China Securities Regulatory Commission on the management of initial public offerings and listing, enterprises listed on initial public offerings and listed on the main board need to meet the following eligibility requirements, including:

The issuer's main assets do not have significant ownership disputes.

In the past 3 years, the main business and directors and senior managers have not changed significantly, and the actual controller has not changed.

The issuer's ownership is clear, and there is no significant dispute over the ownership of the issuer held by the controlling shareholder and the controlling shareholder of the controlling shareholder.

Compared with other qualification requirements, "clear ownership" is particularly urgent and important for PEAK sports, which has just completed privatization.

In previous cases, the qualification of the main body is a prerequisite, but many enterprises are "on the red line".

In addition, financial regulation and sustained profitability (operating scale, net profit, net profit growth rate, etc.), as well as the independence of business and the use of fund-raising funds, are also subject to important supervision.

According to the CSRC's announcement in June 9th of this year, the CSRC focused on announcements of 35 termination reviews and 18 IPO companies that failed to pass the trial, 35 of the 35 enterprises that terminated the review of IPO included the following aspects:

First, there is an abnormal operation or financial situation. 22 enterprises have such problems, accounting for 62.86%.

The two is the normative doubt of accounting, and 5 enterprises account for 14.28%.

The three is the decline in performance, with 4 enterprises accounting for 11.43%.

The four is equity or strategic adjustment, with 4 enterprises accounting for 11.43%.

Earlier, 35 of the sports companies took the initiative to withdraw.

According to the SFC's statement, its accounts receivable balance is relatively high, its turnover rate is declining, its performance fluctuates greatly, and the net cash flow and net profit of business activities are quite different.

In terms of PEAK sports, the group's turnover amounted to RMB 3 billion 100 million yuan in the 2015 fiscal year before the delisting, which was 9.4% higher than that of the previous year's 2 billion 841 million yuan.

PEAK sports said the increase in turnover was mainly attributable to the growth in China's market and overseas market during the year.

Subsequently, this growth trend continued: in the first half of 2016, PEAK group's overseas sales amounted to 296 million yuan, accounting for 22.8% of the total turnover, and sales in the Chinese market were about 1 billion 2 million yuan, accounting for 77.2% of total sales.

The Hsu family is fully in control, and the agency is showing confidence in A.

Generally speaking, the privatization of the Hongkong exchange usually requires a comprehensive offer process.

The privatization or capitalization of a group needs to be voted by the small and medium-sized shareholders except the large shareholders and the concerted action. The agreed votes must reach 3/4 and there should be no more votes than 1/10.

Before the privatization, Xu's sports did not own any shares of PEAK sports listed companies, but the concerted action of Xu's sports company held 61.19% shares.

After privatization, the Xu family fully controlled PEAK sports.

Xu family: Xu Jing Nan and his wife (38.16%), Summit (11.43%), Ling Hui (11.59%), others (38.81%)

On the afternoon of November 2, 2016, PEAK sports officially withdrew from the market.

PEAK sports CEO Xu Zhihua declared, "completing privatization is only the first step.

PEAK's upgrading from a single sports equipment brand to a sports industry group has just begun. "

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PEAK sports HK $2 billion 400 million cash acquisition is an important part of its upgrading.

It is reported that Doug capital, Everbright capital, Qianhai parent fund, Minsheng Bank, Guoxin Securities, Guangfa Securities and Southwest Securities have invested in PEAK's privatization project, with a total investment of HK $2 billion.

Huatai Securities executive director Lao Zhi Ming once told the media that privatization is the need for the buyer to pay shareholders cash, but the difficulty of financing is different. Many privatization initiatives are initiated by investors, and funds will take the initiative to find them. In the capital circle, borrowing money is also a manifestation of money.

Therefore, PEAK sports can get the support of the above capital institutions, and also shows the confidence of capital in PEAK.

Doug capital, who participated in PEAK's privatization investment, said that PEAK is an industrial company of cultural and sports industry. It belongs to the concept of scarcity. In addition, PEAK's outstanding performance in overseas markets has given investors more imagination. Moreover, PEAK has a high potential in sports industry (including competition and service), and the future pformation space is relatively large.

From the investment point of view, PEAK sports after A will become the theme of capital speculation.

On the way back to A, what is PEAK doing now?

In addition to establishing a cooperative relationship with FIBA, Olympic Committee, NBA, WTA and other top international associations and national sports teams, PEAK sports also has plans for product lines and industrial chain expansion of main business.

According to PEAK sports to the ecological circle, the pformation and upgrading of the company will focus on two aspects of products and industrial chain.

PEAK sports said that in addition to the main basketball product line, the company is currently investing more in running, volleyball and tennis fields, and will play volleyball as the key starting point.

A few days ago, PEAK became the exclusive sponsor of China's Super League champions and the exclusive partner of Volleyball League equipment category. It will provide tens of millions of yuan of fund sponsorship each year.

PEAK sports also introduces that it will involve children, outdoor and winter sports in the future, and will adhere to the strategy of endorsement of products endorsed by professional athletes.

In addition, PEAK sports also seeks to expand in the sports industry chain, investing in many companies in games, marketing, training, data and so on.

However, from the case of Fuli real estate and Wanda business, it is no easy task to return to A, but unlike the two real estate companies, PEAK sports in sports manufacturing industry represent more the benefits of the "real economy", which will provide a bonus for its return to A.

But the most fundamental factor is PEAK's own continuous earning power.

Anta sports, which is still trading in Hongkong, has a stock price of HK $35, which has achieved sustained growth in revenue through business operations and brand management.

However, in the last week of October, the news circle of friends of "IPO is suspected of being arrested by financial wig."

At the same time, according to the meeting list issued by the SFC in October 31st, only 2 of the 6 IPO audits were approved, of which the net profit of the non enterprise was more than 400 million yuan.

As a result, market analysts believe that the performance of the listed company will give way to the "comprehensive requirements", which is valued by the SFC and the IPO audit is strictly determined. Therefore, there are still many uncertainties between PEAK sports and A shares.

PEAK sports back to A's long road.

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