New handbag admission fees 2788 yuan

The world’s fifth-largest non-leather handbag OEM handbag (02683) to be listed on the Hong Kong Stock Exchange (00388) main board, plans to issue 100 million shares, of which 10% of the public offering in Hong Kong, IPO price of 1 yuan to 1.38 yuan, Fund up to 138 million yuan. One hand 2000 shares, entrance fee 2787.81 yuan. The shares will be from now until next Monday (15th) to close the IPO, and the results will be announced next Friday (January 19). The shares will be listed on the Main Board on the 22nd.

Four basic investors into shares

The company introduced four basic investors, mainly its customers and suppliers, of which Longtai will subscribe for 10 million shares; Feng Cheng also subscribed 10 million yuan; and Jing Xing and a high surname merchants were subscribed 5 million shares .

Ma Hsin-wen, chairman of Huaxin Handbags, said that as the basic investors are already their customers and suppliers, the company has yet to have further cooperation plans with basic investors.

If the mid-price per IPO price of 1.19 yuan calculation, Huaxin handbags expected net acquisition of about 79 million yuan. About 45% will be used to expand production facilities in Cambodia. About 15% will be used to set up a product development team in Cambodia. About 10% will be used to upgrade existing software and hardware in factories in Dongguan and Cambodia. About 10% will be used to refurbish existing exhibition halls in Hong Kong. And supporting offices, factories in Dongguan and Cambodia; about 10% for setting up exhibition halls in production bases and about 10% for general working capital.

When asked about the expansion of production in Cambodia, Chief Financial Officer Li Yitian pointed out that the wage level in Cambodia is the lowest in Southeast Asia, only one-third of that in the Mainland. It means that even if the wage level rises, the related costs can be passed on to clients Worried about the impact of rising wages.

Mr Li estimates that with the expansion of the Cambodian production line, the proportion of production capacity in the Mainland will be significantly reduced, but it will still maintain a certain level of production. He also believes that a lower proportion of the Mainland will result in an improvement in the gross profit margin as the cost of Mainland staff constitutes a margin A lot of impact, it is estimated that the future expansion of capacity in Cambodia, the gross profit margin can be maintained upward trend.