JNBY Design Limited 江南布衣有限公司

460 Pages·2016·3.43 MB·English

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents
of this Post Hearing Information Pack, make no representation as to its accuracy or completeness and expressly disclaim any
liabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisPost
Hearing Information Pack.
Post Hearing Information Pack of
JNBY Design Limited
江南布衣有限公司
(Incorporated in the Cayman Islands with limited liability)
WARNING
The publication of this Post Hearing Information Pack (“PHIP”) is required by The Stock Exchange of Hong
Kong Limited (the “Stock Exchange”) and the Securities and Futures Commission solely for the purpose of
providing information to the public in Hong Kong.
This PHIP is in draft form. The information contained in it is incomplete and is subject to change which can be
material. By viewing this document, you acknowledge, accept and agree with JNBY Design Limited (the
“Company”), its sponsor, advisers and members of the underwriting syndicate that:
(a) this document is only for the purpose of providing information about the Company to the public in Hong
Kong and not for any other purposes. No investment decision should be based on the information contained
in this document;
(b) the publication of this document or any supplemental, revised or replacement pages on the Stock
Exchange’s website does not give rise to any obligation of the Company, its sponsor, advisers or members
of the underwriting syndicate to proceed with an offering in Hong Kong or any other jurisdiction. There is
no assurance that the Company will proceed with any offering;
(c) the contents of this document or supplemental, revised or replacement pages may or may not be replicated
in full or in part in the actual final listing document;
(d) thisPHIPisnotthefinallistingdocumentandmaybeupdatedorrevisedbytheCompanyfromtimetotime
in accordance with the Listing Rules;
(e) thisdocumentdoesnotconstituteaprospectus,offeringcircular,notice,circular,brochureoradvertisement
offering to sell any securities to the public in any jurisdiction, nor is it an invitation to the public to make
offers to subscribe for or purchase any securities, nor is it calculated to invite offers by the public to
subscribe for or purchase any securities;
(f) this document must not be regarded as an inducement to subscribe for or purchase any securities, and no
such inducement is intended;
(g) neither the Company nor any of its affiliates, sponsor, advisers or members of its underwriting syndicate
is offering, or is soliciting offers to buy, any securities in any jurisdiction through the publication of this
document;
(h) no application for the securities mentioned in this document should be made by any person nor would such
application be accepted;
(i) theCompanyhasnotandwillnotregisterthesecuritiesreferredtointhisdocumentundertheUnitedStates
Securities Act of 1933, as amended, or any state securities laws of the United States;
(j) as there may be legal restrictions on the distribution of this document or dissemination of any information
containedinthisdocument,youagreetoinformyourselfaboutandobserveanysuchrestrictionsapplicable
to you; and
(k) the application to which this document relates has not been approved for listing and the Stock Exchange
and the Securities and Futures Commission may accept, return or reject the application for the subject
public offering and/or listing.
If an offer or an invitation is made to the public in Hong Kong in due course, prospective investors are reminded
to make their investment decisions solely based on the Company’s prospectus registered with the Registrar of
Companies in Hong Kong, copies of which will be distributed to the public during the offer period.
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
IMPORTANT
If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
JNBY Design Limited
江南布衣有限公司
(Incorporated in the Cayman Islands with limited liability)
[REDACTED]
Number of [REDACTED] under the : [REDACTED] Shares (comprising
[REDACTED] [REDACTED] new Shares and [REDACTED]
and subject to the [REDACTED])
Number of [REDACTED] : [REDACTED] Shares (subject to adjustment)
Number of [REDACTED] : [REDACTED] Shares (comprising
[REDACTED] new Shares and [REDACTED]
and subject to adjustment and the
[REDACTED])
Maximum [REDACTED] : HK$[REDACTED] per [REDACTED], plus
brokerage of 1.0%, SFC transaction levy of
0.0027% and Stock Exchange trading fee of
0.005% (payable in full on application in
Hong Kong dollars and subject to refund)
Nominal value : HK$0.01 per Share
Stock code : [REDACTED]
Sole Sponsor [REDACTED]
[REDACTED]
[REDACTED]
HongKongExchangesandClearingLimited,TheStockExchangeofHongKongLimitedandHongKongSecuritiesClearingCompanyLimitedtake
no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability
whatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisdocument.
Acopyofthisdocument,havingattachedtheretothedocumentsspecifiedinthesectionheaded“DocumentsDeliveredtotheRegistrarofCompanies
andAvailable for Inspection” inAppendixV, has been registered by the Registrar of Companies in Hong Kong as required by Section 342C of the
Companies(WindingUpandMiscellaneousProvisions)Ordinance(Chapter32oftheLawsofHongKong).TheSecuritiesandFuturesCommission
ofHongKongandtheRegistrarofCompaniesinHongKongtakenoresponsibilityforthecontentsofthisdocumentoranyoftheotherdocuments
referredtoabove.
The[REDACTED]isexpectedtobedeterminedbyagreementbetweenthe[REDACTED](onbehalfoftheHongKongUnderwriters)andourCompany
on or about [REDACTED] and, in any event, not later than [REDACTED]. The [REDACTED] will be not more than HK$[REDACTED] per
[REDACTED]andiscurrentlyexpectedtobenotlessthanHK$[REDACTED]per[REDACTED],unlessotherwiseannounced.Investorsapplyingfor
the[REDACTED]mustpay,onapplication,themaximum[REDACTED]ofHK$[REDACTED]per[REDACTED],togetherwithbrokerageof1.0%,
SFCtransactionlevyof0.0027%andStockExchangetradingfeeof0.005%,subjecttorefundifthe[REDACTED]islessthanHK$[REDACTED]per
[REDACTED].
The[REDACTED](onbehalfoftheHongKongUnderwriters),withtheconsentofourCompany,mayreducetheindicative[REDACTED]rangestated
inthisdocumentand/orreducethenumberof[REDACTED]beingofferedpursuanttothe[REDACTED]atanytimeonorpriortothemorningofthe
lastdayforlodgingapplicationsunderthe[REDACTED].Insuchacase,noticesofthereductionoftheindicative[REDACTED]rangeand/orthe
numberof[REDACTED]willbepublishedintheSouthChinaMorningPost(inEnglish)andtheHongKongEconomicTimes(inChinese)notlater
thanthemorningofthelastdayforlodgingapplicationsunderthe[REDACTED].Furtherdetailsaresetoutinthesectionheaded“Structureofthe
[REDACTED]”and“HowtoApplyfor[REDACTED]”inthisdocument.If,foranyreason,the[REDACTED]isnotagreedbetweenourCompanyand
the [REDACTED] (on behalf of the Hong Kong Underwriters) on or before [REDACTED] (Hong Kong time), the [REDACTED] (including the
[REDACTED]) will not proceed and will lapse. Please also see the section headed “Underwriting — UnderwritingArrangements and Expenses —
[REDACTED]—[REDACTED]”inthisdocument.
The[REDACTED]havenotbeenandwillnotberegisteredundertheU.S.SecuritiesActoranystatesecuritieslawintheUnitedStatesandmaynot
be offered, sold, pledged or transferred within the United States.The [REDACTED] may be offered, sold or delivered outside the United States in
offshoretransactionsinaccordancewithRegulationS.
[REDACTED]
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
EXPECTED TIMETABLE
[REDACTED]
— i —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
EXPECTED TIMETABLE
[REDACTED]
— ii —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
EXPECTED TIMETABLE
[REDACTED]
— iii —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
CONTENTS
IMPORTANT NOTICE TO INVESTORS
This document is issued by JNBY Design Limited solely in connection with the [REDACTED]
and the [REDACTED] and does not constitute an offer to sell or a solicitation of an offer to buy
any security other than the [REDACTED] offered by this document pursuant to the [REDACTED].
This document may not be used for the purpose of, and does not constitute, an offer or invitation
in any other jurisdiction or in any other circumstances. No action has been taken to permit a
[REDACTED] of the [REDACTED] in any jurisdiction other than Hong Kong and no action has
been taken to permit the distribution of this document in any jurisdiction other than Hong Kong.
The distribution of this document and the offering of the [REDACTED] in other jurisdictions are
subject to restrictions and may not be made except as permitted under the applicable securities
laws of such jurisdictions pursuant to registration with or authorization by the relevant securities
regulatory authorities or an exemption therefrom.
You should rely only on the information contained in this document and the [REDACTED] to
make your investment decision. We have not authorized anyone to provide you with information that
is different from what is contained in this document. Any information or representation not made
in this document must not be relied on by you as having been authorized by us, the Sole Sponsor,
[REDACTED], [REDACTED] and [REDACTED], the Underwriters, any of our or their respective
directors or any other person or party involved in the [REDACTED].
Page
Expected Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Forward-looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Waivers from Strict Compliance with the Listing Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Information about this Prospectus and the Global Offering . . . . . . . . . . . . . . . . . . . . . . . . 66
Directors and Parties Involved in the Global Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Industry Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Regulatory Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
— iv —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
CONTENTS
Page
Our History and Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Relationship with Our Controlling Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Connected Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Cornerstone Investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Substantial Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Directors and Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Future Plans and Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Structure of the Global Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
How to Apply for Hong Kong Offer Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
Appendix I — Accountant’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
Appendix II — Unaudited Pro Forma Financial Information . . . . . . . . . . . . . . . . . . II-1
Appendix III — Summary of the Constitution of Our Company and
Cayman Companies Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
Appendix IV — Statutory and General Information . . . . . . . . . . . . . . . . . . . . . . . . . IV-1
Appendix V — Documents Delivered to the Registrar of Companies and
Available for Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1
— v —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
SUMMARY
This summary aims to give you an overview of the information contained in this document. As
it is a summary, it does not contain all the information that may be important to you and is qualified
in its entirety by and should be read in conjunction with the full text of this document. You should
read the whole document before you decide to invest in the [REDACTED].
There are risks associated with any investment. Some of the particular risks in investing in the
[REDACTED] are set forth in “Risk Factors”. You should read that section carefully before you
decide to invest in the [REDACTED].
OVERVIEW
We are a leading designer brand fashion house based in China. According to CIC, we had the
largest market share of 9.6% in the PRC designer brand fashion industry and had a market share of
0.2% in the PRC apparel industry, each as measured by total retail sales in 2015. We design, promote
and sell contemporary apparel, footwear and accessories for women, men, children and teenagers.
According to CIC, the PRC designer brand fashion industry is a fast growing market segment in the
apparel industry primarily due to consumers’ increasingly sophisticated taste in fashion and growing
desire to pursue greater individuality and uniqueness in clothing. The total retail sales of the PRC
designer brand fashion industry have grown by a CAGR of 26.2% from 2011 to 2015, and are expected
to grow by a CAGR of 26.7% from 2016 to 2020, according to the same source.
Our Brands and Products
Our brand portfolio currently comprises five brands — (i) JNBY, (ii) CROQUIS, (iii) jnby by
JNBY, (iv) less and (v) Pomme de terre, each targeting a distinct customer segment and having a
uniquely defined design identity based on our Group’s universal brand philosophy — “Just Naturally
Be Yourself”, which seeks to convey our belief in embracing independent thinking, independent
expression, distinctive trends and allowing consumers to derive greater joy from their attire. Our
products target middle- and upper-income customers. The table below sets forth a breakdown of our
revenue by brand, each expressed as an absolute amount and as a percentage of our total revenue, for
the years indicated.
Fiscal 2014 Fiscal 2015 Fiscal 2016
RMB’000 (%) RMB’000 (%) RMB’000 (%)
Revenue
Women ............................... 1,104,058 79.8 1,200,762 74.4 1,320,295 69.3
JNBY ............................... 1,029,632 74.4 1,110,500 68.8 1,197,610 62.9
less ................................. 74,426 5.4 90,262 5.6 122,685 6.4
Men ................................... 237,781 17.2 298,058 18.5 379,595 20.0
CROQUIS ........................ 237,781 17.2 298,058 18.5 379,595 20.0
Children ............................ 41,596 3.0 114,273 7.1 202,752 10.7
jnby by JNBY .................. 41,596 3.0 114,273 7.1 202,752 10.7
Pomme de terre (1) ........... — — — — — —
Total revenue ..................... 1,383,435 100.0 1,613,093 100.0 1,902,642 100.0
Note:
(1) We introduced Pomme de terre in March 2016, opened the first Pomme de terre store in July 2016, and did not record
any revenue under this brand during the Track Record Period.
— 1 —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
SUMMARY
The following table sets forth a breakdown of the gross profit and gross profit margin of each
of our five different brands for the years indicated.
Fiscal 2014 Fiscal 2015 Fiscal 2016
Gross Profit Gross Profit Gross Profit
Gross Profit Margin Gross Profit Margin Gross Profit Margin
RMB’000 (%) RMB’000 (%) RMB’000 (%)
JNBY ................................... 579,373 56.3 665,309 59.9 727,430 60.7
CROQUIS............................ 156,599 65.9 201,847 67.7 259,396 68.3
jnby by JNBY....................... 22,814 54.8 68,697 60.1 124,647 61.5
less...................................... 44,190 59.4 54,698 60.6 78,986 64.4
Pomme de terre.................... — — — — — —
Total.................................... 802,976 58.0 990,551 61.4 1,190,459 62.6
— 2 —
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND
THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION
HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
SUMMARY
Our Business Model
We operate a highly integrated business model, which enables us to seamlessly and efficiently
connect each critical stage of our business operations. Our business model is illustrated in the
following diagram.
9-12 months
Product Fashion trend development before
planning and Supporting launch of
departments:
design each
- Statistics
and data collection
analysis
Seasonal theme development - R&D
(material R&D / material selection / product design) Feedback - Supply
chain
- Marketing
Sample apparel production (note 1) /
Pricing strategy development
4-6 months
Sample apparel before
Trade fair and launch of
ordering Trade fair each
(fashion show / seasonal fashion theme
collection;
introduction)
Order
placement
Order placement by distributors /
order placement by company
2-5 months
before
Quality launch of
Supply chain inspection
Raw material each
management Quality selection collection
control Raw material procurement
Onsite
quality Production
inspection OEM outsourcing management
(includes procurement for certain Information
raw material) management
system
Quality
Inventory inspection
return /
quality
control Warehousing, logistics and delivery
for Real-time
returned inventory
inventory monitoring/
In-season products Online and
Sales and offline
distribution Off-season products information
feedback/
(cipnOhltaametnfronancire-mtli v) e Tohpsiretreodrtar-aeptiesla d r ty oprSeeretalatfie-l d Omsntoolbirniele e / s(Ontooutrteel e2s)t Aoprldaddceeirtsmi o ennatl Launch
(note 3) stores
Membership
End customers management
Process carried Note 1: Sample apparel production carried out by Hangzhou JNBY
out by the Group Note 2: Outlets are mainly self-operated with some being distributor-operated
Note 3: Includes distributor-operated stores and stores operated by overseas customers
Process carried
out by other
parties
— 3 —