Lu Enterprise Sports Shoes Brand XTEP Chooses Taiwan As The Second Capital Market.

January 7th, a land enterprise known as China's Adidas. Sports shoes brand " XTEP "To set up his first overseas branch in Taiwan. Ding Shuibo, founder and chairman of XTEP, will also come to the roadshow on the 14 th of this month.

He Ruibo, chief financial officer of XTEP, said that in December 27th of last year he obtained the approval of the stock exchange. He expects to issue TDR in Taiwan in March this year. The issue of TDR is expected to raise 100 million US dollars, half of which will be given to the old fund of Caire fund. At that time, Caire's shareholding in XTEP will be 7.2% from the current 9.2%, and the other half of the fund-raising will be used for XTEP's company operation.

He Ruibo emphasized that China's "mainland China" is the main market, accounting for about 99% of the total. But with the maturity of the brand and the introduction of Taiwan as a springboard to enter the Taiwan capital market, we can know the management and technology of the retail and apparel business through the Taiwan market.

XTEP is Hong Kong listed companies, choosing Taiwan as the second capital market, and will set up XTEP's first overseas branch in Taiwan.

With XTEP issuing TDR in the future, XTEP will also accelerate the pace of expansion in Taiwan. It is reported that XTEP will take direct business in three years and join in a two pronged approach to drive the company's profit target in three years. This year, 10 to 15 stores will be opened first, and the size of Taiwan market should have 300 stores in the future.

Last year, XTEP opened its first Taiwan store in west gate. He Ruibo analyzed that the issue of TDR in Taiwan is an invisible advertisement, although most of the first-line brands have been stationed in Taiwan, but there is room for growth in the mid end product market.

XTEP has always been delicate in its operation brand. Yesterday, the XTEP dealer conference held in Xiamen signed the exclusive sponsorship agreement between XTEP and two marathons in Taipei. It is reported that this year, XTEP plans to call on China's local brands, ready to beat the international brand NIKE, become the exclusive sponsor of sports brand, and contribute to brand awareness.

He Ruibo said that brand management needs to be focused. XTEP chose marathon. The sponsorship of the eight marathon cities in mainland China has been won this year, helping to promote XTEP to become an international brand in the future. At present, there are 7000 stores on XTEP mainland, and 800 to 1000 stores will be added this year. He Ruibo said that according to the experience of other sports brands in the mainland, about 1 shops will be opened, and the number of exhibition shops will slow down and become a sprint of single store turnover.

It is reported that the average monthly sales price of a single store is about 450 thousand yuan (about NT $1 million 980 thousand), a pair of shoes sold to consumers is RMB 100 yuan, the cost price of XTEP to dealers is about 40 yuan, and another 60 yuan is dealer profit.

He Ruibo disclosed that XTEP had dominated shoes before 2007, but the proportion of garment sales increased in 2010. At present, 52% are clothing and 48% shoes.

According to the company's semi annual earnings report, XTEP made a profit of RMB 2 billion 40 million (about NT $9 billion) in the first half of 2010. It entered the winter in the second half of the year and gained more profits. He estimated that the proportion of turnover in the second half of the year will be about 55% of the whole year.