Nicholas Tse, Who Has Been In Love For 15 Years, Is So Optimistic About XTEP?

Nicholas Tse shares his endorsement for 15 years.

It invested HK $22 million 500 thousand, accounting for 0.23% of the shares.

For this 13% premium paction, XTEP said to lazy bear sports that Nicholas Tse himself thought it reasonable.

For XTEP, Nicholas Tse is the longest serving spokesman.

Since 2001, Nicholas Tse has been speaking for the Fujian sports brand for 15 years.

This month, Nicholas Tse's relationship with XTEP went further.

XTEP International Holdings Limited issued a notice at 0 o'clock in July 15th and reached an agreement with spokesperson Nicholas Tse. Nicholas Tse agreed to subscribe for 5 million new shares at HK $4.5 per share, amounting to HK $22 million 500 thousand, representing 0.23% of the issued share capital and a period of one year's ban.

The market responded well to the deal.

On the day of July 15th, XTEP's shares rose 3.38%, trading volume amounted to HK $about 51000000, and the volume of pactions in the previous days was basically between 15 million and 20 million.

In the next few days, XTEP shares continued to rise, reaching a price of HK $4.18 in July 19th.

However, the subscription price of the 4.5 Hong Kong dollar has made some comments on the outside world, which is about 13.07% higher than the subscription price of HK $3.98.

In theory, Nicholas Tse's purchase of XTEP's stock in the two tier market is more cost-effective.

Liu Xuxin, director of investor relations at Hongkong XTEP, said that because it was issuing new shares, there would be a premium. The premium would also be a reference to XTEP's previous share price. Nicholas Tse himself thought the premium was reasonable and could reflect his thoughts on the future of the company.

Nicholas Tse and XTEP have been talking about this for months.

Nicholas Tse and XTEP CEO Ding Shui Bo.

In addition, speculation about the agreement between XTEP and Nicholas Tse is also endless, such as whether XTEP will return the money invested by Nicholas Tse in the form of endorsement fee.

Liu Xuxin responded by saying, "there is no such thing as impossible in the world", but she also stressed: "I haven't talked about this for the time being. I have no plan to return it for the time being. After that, we will discuss it again."

The announcement shows that the deal will be used for XTEP's product development, mainly for the development of Nicholas Tse's special products.

Nicholas Tse himself also said, "I hope to make full use of my creativity through a brand new XTEP product line with the company."

Liu Xuxin said that the product line designed by Nicholas Tse is expected to be launched in the second quarter or the second half of next year, and the specific release time, product category and naming are still to be discussed, but we can feel that it is Nicholas Tse from the product.

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Nicholas Tse has been active in Hongkong's capital market in recent years. Whether it is a post production company or an investment shop, it has benefited a lot.

Nicholas Tse joined the XTEP in the sports industry.

Founded in 2002, XTEP went public in Hongkong in June 2008. Currently, there are 7000 retail outlets in China.

According to the 2015 annual report, XTEP's annual income was 5 billion 295 million 100 thousand yuan.

Compared with Anta's 11 billion 100 million yuan and Lining's 7 billion 800 million yuan, XTEP is regarded as a middle-class brand in China.

XTEP broke through the annual income of 5 billion 500 million in 2011 and 2012, and there has been a sharp decline in 2013.

In particular, the gross profit margin has increased significantly this year to 42.2%, and there is still a certain gap between gross profit margin of Anta and Lining 45%.

XTEP's earnings data from 2011 to 2015.

From the data point of view, XTEP began to catch up after two years of retrogression. In 2015, XTEP became the year of change, and its positioning shifted from the original sporting goods to sports fashion brand.

Under the marathon tide, running has become the key of XTEP's pformation and the first focus of development.

In 2015, XTEP sponsored 17 large marathon races in China, the largest sporting goods brand in the Greater China area, and XTEP has signed over 20 large marathons this year, according to Liu Xuxin.

In the future, XTEP's running color will become more and more concentrated.

XTEP's fourth quarter 2016 order meeting announced that sales of functional sporting goods, especially running equipment, continued to increase.

XTEP has been trying to improve the technology content of running shoes and clothing. Last year, it developed materials with international suppliers such as Dongli, Japan, Dow Chemical Corporation and so on, with shock absorption and power as the selling point of running shoes.

On the level of science and technology, XTEP's running shoes can not be compared with foreign brands such as Nike, ADI, UA and so on in the near future.

But XTEP's advantage lies in its high performance price ratio.

Arthur, new brun and other brands of running shoes frequently run over 1000 yuan, and Lining and Anta's running shoes are priced at about 300 yuan. Compared to XTEP, the average price of XTEP shoes is more attractive than price. Tmall's highest selling XTEP running shoes are priced at 149 yuan and sold 140 thousand pairs.

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XTEP's slogan is "becoming the preferred brand of runners". If we really want to achieve it, there is still a long way to go.

How to ensure gross profit margin under the premise of improving the technology content and how to open the market in a wider running group are all problems that XTEP can not avoid.

In addition, football is regarded as the second key point by XTEP.

In the past five years, XTEP has sponsored the Chinese collegiate Futsal League, the Chinese University Football League and the Spanish League Villarreal football club.

At the same time, XTEP is also trying to enter the comprehensive training, outdoor and female market.

Most of the shops in XTEP are located in three or four line cities. The emerging sports market in these areas has not yet been fully developed. XTEP can make use of its inherent advantages to excavate new market potential in neglected small cities.

In the past 15 years, Nicholas Tse and XTEP have been inseparable.

"Sports + entertainment" is a marketing concept that XTEP has adopted in recent years.

Nicholas Tse, an entertainment star, is also a big label for XTEP.

In addition, XTEP's famous Hunan satellite TV variety show "day to day" is familiar to domestic users, thanks to the large-scale sports reality show in China in recent years. XTEP and Zhejiang TV's "run, brothers", Anhui TV "boys and girls go forward" and other 4 programs have also reached a cooperation.

In 2015, XTEP's advertising expenses accounted for 14.7% of the revenue. It was the highest proportion of advertising investment in the five major sports brands in the country. Perhaps XTEP needs more consideration of this input output.

Looking back at the event itself, the 22 million 500 thousand Hong Kong dollar is not a big investment for Nicholas Tse.

At present, he holds 15% stake in Han media and 0.81% stake in the digital Kingdom, which is valued at about HK $130 million in July 19th, and there are many shops and buildings under his name.

And 0.23% of the shares for the founder of Ding Shuibo, also does not hinder the control of XTEP, he himself holds more than 60% of XTEP shares.

To be sure, Nicholas Tse has made a lot of news from the news of changing the shareholder of the spokesperson, not only for the subsequent series of products, but also for the outside world to pay attention to the layout and pformation of XTEP.