Zhong Mian, China is currently the largest travel retailer in the world. In recent years, with the intensification of competition in duty-free industries and the impact of the epidemic, the gross profit margin of Zhong Mian, China has been declining. So today, Bian Xiao has compiled the relevant knowledge of China and Zhong Mian here. Let's have a look!

The largest IPO of Hong Kong stocks was listed during the year.

On the afternoon of May 25th, China Zhong Mian officially landed on the Hong Kong Stock Exchange.

China Zhong Mian announced at noon on the same day that according to the trading arrangements of the HKEx during typhoons, extreme situations and black storms, the trading of Hong Kong stocks will be stopped on the morning of August 25th, and the H shares of the company are expected to start trading on the main board of the HKEx during trading hours on the afternoon of August 25th.

On the afternoon of the same day, China Zhong Mian H shares broke at the opening price of HK$ 65,438+020 per share, which was 24.05% lower than the issue price. However, its share price was quickly pulled back and maintained at around HK$ 65,438+057 per share. The final closing price was the same as the issue price, which was HK$ 65,438+058 per share.

Some investors said that the intraday limit of China stock market was expected. After all, most of the new shares listed on Hong Kong stocks this year have been broken.

China Zhong Mian also broke in the dark trading on the eve of listing. Futu Software shows that on August 24th, the share price of China Zhong Mian H shares fell by more than 7% compared with the issue price in dark trading, and finally closed down by 4.8 1% to close at HK$ 150.4 per share, with a loss of about HK$ 760 per hand excluding handling fees.

Mr. Chen Ge told us: "The listing of China and Bao Zhong in Hong Kong is a very important step in the internationalization of the company. The listing of Hong Kong stocks gives it an overseas financing platform, which is closely related to the strategy of China and Zhong Mian to go global. From the perspective of long-term strategic goals, this IPO of Hong Kong stocks can promote the company's globalization strategy. "

According to the prospectus, Zhong Mian, China has the largest number of duty-free shops in China. The company's business mainly includes selling duty-free and taxable goods to domestic and foreign tourists.

According to the announcement of China Zhong Mian on August 24th, the net proceeds from the global offering (without exercising the over-allotment option) were about HK$ 654.38+05.892 billion.

This financing amount exceeds Tianqi Lithium Industry (9696. HK), a lithium giant that landed on the Hong Kong Stock Exchange in July this year, set a new record for net financing of Hong Kong stocks in 2022. The net financing of the latter is HK$ 6543.8+03.062 billion.

However, its issue price of HK$ 65,438+058/share (about RMB 65,438+037/share) is significantly discounted compared with China Zhong Mian A-share. As of the close of August 24th, China Zhong Mian A shares closed at 189.8 yuan/share, down 1.65% on that day. Based on this calculation, its H shares are discounted by about 30% compared with A shares.

Before the secondary market broke, China Zhong Mian was subscribed by many cornerstone investors and institutional investors.

According to the prospectus, China Zhong Mian introduced nine cornerstone investors to subscribe for about HK$ 6.238 billion.

Among the nine cornerstone investors, China State-owned Mixed Ownership Reform Fund subscribed for165438+77 million shares; Amorepacific Construction Group, a well-known cosmetics company in South Korea, COSCO Shipping and Rongshi International Holdings Limited each subscribed for HK$ 785 million; Shanghai Airport (600009. SH) Subscribe for HK$ 777 million; LU ZHOU LAO JIAO CO.,LTD Co., Ltd. (000568. SZ) subscribed for HK$ 622 million; China State-owned Enterprise Structural Adjustment Fund subscribed for HK$ 600 million; Hainan Free Trade Port Construction Investment Fund managed to subscribe for HK$ 392 million; American Oak Capital subscribed for HK$ 3,654,380,400.

CMB International said that the company has a huge lineup of cornerstone investors, with a total subscription scale of 795 million US dollars, accounting for about 38.4% of the total number of shares sold before the issuance of green shoes.

In addition, its public offering is also supported by institutional investors. Its international placement is oversubscribed by about 4.7 times, and its public offering in Hong Kong is oversubscribed by about 1. 1 times.

The joys and sorrows of tax exemption from outlying islands

Since the introduction of the tax-free policy in Hainan Free Trade Zone in 2020, China Zhongmian has increasingly relied on tax-free income from outlying islands. In 20 19, duty-free shops at airports, land borders and other ports contributed the most to China, accounting for 66.3% of the total business, while duty-free shops on outlying islands only accounted for 27.6%. By 20021year, their status had been reversed-duty-free shops in outlying islands accounted for 69.5% of the total business, while duty-free shops in ports only accounted for 25. 1%.

At present, consumers generally feel two most obvious shortcomings when buying duty-free goods in Hainan: first, hot goods are out of stock; Second, the four top luxury boutiques have never appeared.

Nearly half of the funds raised by the listing of China Bao Zhong are used to consolidate domestic channels, and more than 80% of these funds are used to invest in outlying island stores and duty-free shops in the city.

Zhong Mian, China is promoting two major projects in Hainan, one is Haikou Xinhai Port International Duty Free City Project. This duty-free city is located on the west coast of Haikou, with an estimated sales area of 6.5438+0.5 million square meters, twice that of Sanya International Duty Free City, and will become the largest single city duty-free shop in the world. China once said that Haikou Xinhai Port Duty Free City will open in 2022, which can receive more customers and is the most direct way to increase income.

Second, the No.2 land project of Sanya International Duty Free City Phase I, with an investment of 3.69 billion yuan from Zhong Mian, China, will become a tourism and retail complex project integrating duty-free businesses and high-end hotels.

Competition in duty-free industries has intensified.

Although it has become the leader of the domestic duty-free industry, Zhong Mian, China will still face the risk of intensified competition and epidemic in the duty-free industry in the future.

China Zhong Mian is a state-owned franchise company, which mainly sells duty-free goods. Supply chain and sales channel are two key elements of its operation. From the perspective of supply chain, by March 2022, China Free had covered 1200 brands, including fragrance, fashion products and accessories, tobacco and alcohol, food and so on.

In terms of sales channels, China Duty Free Shop currently operates 193 stores, including 184 in Chinese mainland and 7 abroad, including duty-free shops in Hongkong, China, Macau, China, and Cambodian China, and 2 cruise duty-free shops.

Zhong Mian, China, is one of the nine domestic entities qualified to operate duty-free goods in China, and it is also the only retail operator covering all sales channels of duty-free goods, including port stores, outlying island stores, city stores, cruise stores, ship stores and ocean-going supply stores. According to the data of Jost Sullivan, the sales revenue of Zhong Mian, China ranked first in the world in 2020 and 20021year.

After the outbreak, thanks to the return of consumption, China Zhongmian's revenue increased significantly, from 48 billion yuan in 20 19 to 67.676 billion yuan in 20021year, and the growth rate also increased year by year. The net profit doubled from 20 19 to 202 1.

In April, 2022, Chen Guoqiang said in an exclusive interview with us: "Many colleagues asked me, is China the first duty-free country in the world because of the epidemic? You can't be the first without an epidemic? I can clearly say that the epidemic is accelerating only to avoid climbing to this position. In our initial forecast and planning, there was no epidemic. By 2023 and 2024, we will definitely be the first. "

However, the epidemic dividend is limited only if the country can move freely. When the epidemic was severe, not only did the domestic tourism stagnate, but many shops in Zhong Mian, China had to suspend business, resulting in a decline in performance. According to the prospectus of China Zhong Mian, only 26% of the stores temporarily closed after the COVID-19 epidemic resumed normal business, 1 1% of the stores reduced their ability to resume business, while as many as 63% of the stores were temporarily closed. In the first half of 2022, China Insurance's revenue decreased by 22% year-on-year to 27.65 billion yuan, and its net profit decreased by 30% year-on-year to 4.55 billion yuan.

In addition to the possible impact of the COVID-19 epidemic, Zhong Mian, China has to face increasingly fierce competition in duty-free industries.

At the same time, in recent years, international tax-free giants have begun to enter China. For example, in June 5438 +2020 10, Dufry, a Swiss duty-free retail giant, announced the establishment of a joint venture with Alibaba in China to promote the domestic tourism retail business. In July this year, Silla Duty Free Shop, a subsidiary of Samsung Group, opened an online duty-free shop in China. More than 300 kinds of cosmetics and health foods in this store landed on China's shopping website that month.

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