4numbersinpowerball| Zhongqiao Sports withdraws its IPO application: It has been nearly 13 years since the meeting, saying it was adjusted based on strategic planning

Zhong Qiao Sports, which had already passed the meeting in 2011, withdrew its IPO application.

On May 17, Zhongqiao Sports Co., Ltd. (hereinafter referred to as "Zhongqiao Sports") and its sponsors applied to withdraw the listing application documents. The Shanghai Stock Exchange shall terminate the examination and approval of its issuance and listing in accordance with the relevant regulations.

It is reported that Zhongqiao Sports IPO application was examined and approved by the issuance Review Committee of the China Securities Regulatory Commission on November 25, 2011. in March 2023, it was transferred to the main board of the Shanghai Stock Exchange in accordance with the requirements of the full implementation of the registration system by the China Securities Regulatory Commission, and plans to raise 10%.4numbersinpowerball6.4 billion yuan, to be used for shoe production base expansion project, R & D and design center construction project, national strategic direct store construction project, information construction project. Recently, Zhong Qiao Sports voluntarily withdrew the application materials for listing.

With regard to the voluntary withdrawal of the IPO application, Zhongqiao Sports said in an external statement, "the company has been operating steadily for a long time and has good performance. Considering the business decision and strategic planning adjustment, the company's board of directors has decided to withdraw the IPO application. The withdrawal of this application will not affect the operation and long-term development of the company, and the company will continue to pay attention to the developments in the capital market. The company will always maintain sound operation, continue to increase product research and development and market investment, and is committed to providing consumers with more and higher quality products. " It is reported that the fund-raising projects involved in its IPO application have basically been completed with its own funds.

It is reported that the predecessor of Zhongqiao Sports was the second Commodity Factory established in 1984 and renamed Fujian Jordan Sporting goods Co., Ltd. in 2000. At that time, Michael Jordan was named the greatest North American athlete of the 20th century. Previously, since the use of the "Jordan" trademark in 2000, Jordan Sports has never stopped questioning the "misleading consumers".

According to the initial public offering prospectus submitted by Jordan Sports in 2011,4numbersinpowerballJordan Sports, which has had 10 years of "Jordan" traffic, said that the company does not have any business relationship with Michael Jordan, nor has it used its image for corporate or product promotion, but there may still be misunderstandings or confusion among some consumers by linking the company and its products with Michael Jordan.

In 2010, Jordan Sports had an operating income of about 2.9 billion yuan, a net profit of about 500 million yuan, and 5715 brand stores. This year, Li Ning was also the leader of local sports brands, with revenue of about 9.4 billion yuan, followed by Anta, with revenue of about 7.4 billion yuan. In fact, in November 2011, Zhongqiao Sports, then also known as "Jordan Sports", was examined and approved by the Securities Regulatory Commission, that is, a successful meeting, but then fell into a storm of trademark infringement and became a "nail household" waiting for listing.

In 2012, NBA star Michael Jordan accused Jordan Sports of violating his name rights and asked the Trademark Review and Adjudication Board to revoke 79 registered trademarks, which became a hurdle on Jordan Sports's way to go public.

For many years, Jordan Sports kept pulling with Michael Jordan, until 2020, the Supreme people's Court held that Jordan Sports knew that Michael Geoffrey Jordan himself enjoyed a long-term and extensive reputation in China. Still use "Jordan" to apply for the registration of disputed trademarks, it is easy to cause the relevant public to mistakenly think that there is a specific relationship between the goods marked with disputed trademarks and Jordan himself. It harmed Jordan's right to his first name.

At the end of 2012, according to the Civil judgment No. 1 of Shanghai No. 2 Intermediate people's Court, Jordan Sports was ordered to publish a statement in the designated media clarifying its relationship with Michael Jordan and making a public apology. At the same time, stop using the "Jordan" trade name and trademarks related to "Jordan" in the enterprise name. However, for trademarks involving "Jordan" that have exceeded the five-year dispute period, reasonable ways, including distinctive logos, should be adopted to indicate that they do not have any connection with Michael Jordan. In addition, compensation for Michael Jordan's mental damage compensation of 300000 yuan should be paid.

From "Jordan Sports" to "Zhongqiao Sports", Zhongqiao Sports Co., Ltd. (referred to as "Zhongqiao Sports") restarted the listing process on the main board of the Shanghai Stock Exchange after the launch of the full registration system. In recent years, the net profit of Zhongqiao Sports has declined, and the gross profit margin has continued to decline.

According to the previous prospectus, Zhong Qiao Sports is mainly engaged in the design, production and sale of sports shoes, sportswear and sports accessories products, including self-production and outsourcing, and establish a sales network throughout the country through the combination of dealer sales and network self-sales. Its revenue is in the middle of the industry. From 2019 to 2021 and the first half of 2022, Zhongqiao Sports's operating income was about 5.591 billion yuan, 4.928 billion yuan, 5.931 billion yuan and 3.099 billion yuan respectively. After falling 11.85% in 2020, it rebounded by 20.36% in 2021.

In response, Zhongqiao Sports explained that due to the impact of the epidemic in 2020, the sales volume of products decreased and the unit price of products also declined, but with the recovery of the market in 2021 and the company's investment in product innovation and marketing, product sales continued to grow. the average unit price of products is also higher than that in 2020.

Zhongqiao Sports pointed out that the stable marketing network and brand effect promote the growth of the company's sales revenue. "the Group has spared no effort to open up the market, establish and maintain a sound marketing network."

As of June 30, 2022, the total number of Jordan stores is 6269. Zhongqiao Sports said that since the establishment of the Jordan brand, it has strengthened its brand promotion and construction, and has made remarkable achievements, so that the company's product sales revenue has remained relatively stable in the face of the sportswear industry recession.

In terms of sales volume and unit price, in the first half of 2022, Zhongqiao Sports clothing sold about 20.88 million pieces, with an average unit price of 58.9 yuan; shoes sold about 17.1 million pairs, with an average unit price of 103.73 yuan.

In terms of profitability, from 2019 to 2021 and the first half of 2022, the gross profit margin of Zhong Qiao Sports's main business was 31.99%, 29.83%, 28.23% and 27.51% respectively, of which the gross profit margin of clothing was relatively high, more than 30%. The net profits attributed to the owners of the parent company were 832 million yuan, 738 million yuan, 695 million yuan and 363 million yuan respectively, showing a downward trend year by year.

Regarding the decline in the gross profit margin of the company's main business year by year, Zhongqiao Sports explained that in the first half of 2020, affected by the epidemic, in order to enhance dealers 'confidence, the company took the initiative to reduce profits and appropriately reduced discounts to benefit dealers. In 2021, the prices of major raw materials for sports shoes such as soles will increase significantly, leading to an increase in direct material costs and lowering the gross profit margin of the sports shoe business. By the first half of 2022, Zhongqiao Sports said that on the one hand, the price of soles was high, on the other hand, sales during the period increased, and the proportion of outsourced processing of the company's main products, sports shoes, increased. Two major factors dragged down the gross profit margin.

Compared with comparable companies in the same industry, Zhongqiao Sports, whose revenue depends on distribution channels for more than 80%, has a growing gap between its gross profit margin and the industry average. By the first half of 2022, it will be more than 20 percentage points lower than the industry average.