Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Company presentation


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Company presentation

  1. 1. XINIYA | 希尼亚希尼亚希尼亚希尼亚NYSE listedTicker: XNYChina Xiniya Fashion Limited1April 2013
  2. 2. XINIYA | 希尼亚希尼亚希尼亚希尼亚Safe Harbor StatementSafe Harbor StatementThis presentation contains "forward-looking" statements within the meaning of Section 21Eof the Securities Exchange Act of 1934, as amended, and as defined in the U.S. PrivateSecurities Litigation Reform Act of 1995. These forward-looking statements can beidentified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans,""believes," "estimates," "target," "going forward," "outlook" and similar statements. Suchstatements are based upon managements current expectations and current market andoperating conditions, and relate to events that involve known or unknown risks,uncertainties and other factors, all of which are difficult to predict and many of which are2 XNY LISTED NYSEuncertainties and other factors, all of which are difficult to predict and many of which arebeyond the Companys control, which may cause the Companys actual results,performance or achievements to differ materially from those in the forward-lookingstatements. Further information regarding these and other risks, uncertainties or factors isincluded in the Companys filings with the U.S. Securities and Exchange Commission. TheCompany does not undertake any obligation to update any forward-looking statement as aresult of new information, future events or otherwise, except as required under law.
  3. 3. XINIYA | 希尼亚希尼亚希尼亚希尼亚Who We AreWho We AreMarketPositioningTop 5 business casualmenswear brand in Chinabased on retail salesTargetConsumersProductPositioningStylish yet comfortableapparel suitable for work,travel and leisureWhite-collar male, withaverage to high disposableincome, aged 25-453 XNY LISTED NYSEPresenceBusinessModelAsset-light distributor modelLean corporate structureConsumers income, aged 25-45Nationwide across 21provinces, 4 municipalitiesand 5 autonomous regions# of Outlets1,600+ Xiniya-brandedretail outlets
  4. 4. XINIYA | 希尼亚希尼亚希尼亚希尼亚Share Buyback ProgramShare Buyback Program$1.8 million Share Repurchase Program according to SEC Rule 10b5$1.8 million Share Repurchase Program according to SEC Rule 10b5--11In July, Xiniya announced a $1.8 million share repurchase program, which has beeneffective on September 1, 2011 through December 31, 2012. The share buyback hasbeen and will be executed automatically and evenly over the mentioned time frame inaccordance with SEC Rule 10b5-1. Management believes Company’s stock isundervalued, and the program will create value for shareholders.Management commits personal fund to supplement repurchase4 XNY LISTED NYSEQiming Xu, Chairman and CEO, would purchase up to $200,000Chee Jiong Ng, CFO, would purchase up to $50,000As at December 31, 2012, the results are as follows:The Company spent $1,678,958, or 1,070,827 ADSs at $1.57;Chairman spent $186,540, or 118,990 ADSs at $1.57; andCFO spent $46,631, or 29,759 ADSs at $1.57.Note that XNY as a foreign private issuer is not required to file Form 4.
  5. 5. XINIYA | 希尼亚希尼亚希尼亚希尼亚Our HistoryOur HistoryEstablishment ofretail network, firstretail outlet openedin Jan 2006Recognized as a“Well-KnownTrademark ofChina”20102nd outlet imageupgrade beganCompletedretail networkrestructuringFirst ChinaApparel Companylisted on NYSEvia IPO inNov 2010200920085 XNY LISTED NYSERegistrationof “Xiniya”trademark1993Recognized as a“Fujian FamousTrademark” Signed JackyCheung as ourbrandspokespersonSurpassed 1,000retail locations1st outlet imageupgradeTripled revenueand net incomein three yearsNov 2010200720062005
  6. 6. XINIYA | 希尼亚希尼亚希尼亚希尼亚Product positioningProduct positioningPrice6 XNY LISTED NYSEBusinessformalFashion,Casual
  7. 7. XINIYA | 希尼亚希尼亚希尼亚希尼亚Product PositioningProduct PositioningClassicActual consumergroup:Age 25~45Actual age group7 XNY LISTED NYSEFashionThe mainconsumergroup:Age 30~40StyleElegantand stylishUrbanleisureUrbanfashion
  8. 8. XINIYA | 希尼亚希尼亚希尼亚希尼亚# of OutletsCompetitionCompetitionSeptwolves3,2493,5253,2683,976China’s business casual menswear market is still fragmented,without dominant brand in the market8 XNY LISTED NYSESource: Listed companies data- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000XiniyaJoe OneChina Lilang1,1812,4302,5611,4042,7102,8851,6073,1403,268201120102009
  9. 9. XINIYA | 希尼亚希尼亚希尼亚希尼亚We target Tier 2 and below cities,prefectures and counties in China:Large unexplored market potentialMore attractive growth dynamicsLittle penetration by internationalbrandsOver 3,000 Tier 2 and below citiesTier 2-4Cities andRegionsCurrentXiniya outlet Distribution (by # of cities)71% (2011-74%,29% (2011-26%,2010-23%)Impressive Growth PotentialImpressive Growth Potential –– Breadth and DepthBreadth and DepthUnexplored9 XNY LISTED NYSE10+ outletsin 4 cities(2011-12,2010–8)and regions in China(1), Xiniyacurrently has outlets in only 2012-933 (2011-838, 2010–749) of themWe also see significant room forgrowth in our existing geographieswhere we could increase marketpenetration substantiallySource: Company information as at December 31, 20121 outlet in 587cities (2011-537,2010–498)71% (2011-74%,2010–77%)Xiniya outlet Penetration (by # of cities)6 - 10 outlets in33 cities (2011-24, 2010–18)Tier 2-4Cities andRegions2–5 outlets in309 cities(2011-265,2010–226)
  10. 10. XINIYA | 希尼亚希尼亚希尼亚希尼亚Heilongjiang83Jilin35Xinjiang69Shandong80Tianjin4Hebei41Inner Mongolia44Gansu24Ningxia4Shanxi34Beijing1Liaoning80Distributor NetworkDistributor Network10 XNY LISTED NYSE60 or more retail outlets40 to 59 retail outlets20 to 39 retail outletsLess then 20 retail outletsOutlets Breakdown by Channels(as of December 2012)Channel# ofPartners# ofOutletsCompany Operated 1 2Distributors 29 118Authorized Retailers 1,378 1,590Total 1,710Sichuan73Anhui47QinghaiYunnan70Henan97Shanghai1Jiangsu66TibetGuizhou58Guangdong64Hainan2804Shaanxi53Chongqing69Jiangxi53Hubei82Hunan148Guangxi94Zhejiang135Fujian97Source: Company information as at December 31, 2012
  11. 11. XINIYA | 希尼亚希尼亚希尼亚希尼亚1,590 outletsmanaged byauthorizedretailers118 outletsdirectlymanaged bydistributors2 flagshipoutlets operatedby XiniyaEndConsumers$100Xiniya$2729ExclusiveDistributors$41 1,378AuthorizedRetailers$50Our Business ModelOur Business ModelAssuming a unit retail price of $100, the chart below illustrates the profitability model.11 XNY LISTED NYSESource: Company information as at December 31, 2012Highlights of the Distributor ModelLocal ExpertiseLimitedResourcesand CapitalStreamlined,SimpleDistributionNetworkRapidlyExpandingSales Networkand ServicePlatform$50
  12. 12. XINIYA | 希尼亚希尼亚希尼亚希尼亚Industry ExperienceDeep Local and RegionalSales NetworkFinancial WherewithalWe Select Distributors Rigorously…Weekly Reporting of Sales at theRetail LevelBi-Weekly Meeting to DiscussKPIs and Market Feedback…and Work Very Closely with ThemDedicated Team of 90+ to Monitor,Provide Support and GuidanceManaging our Distributor and Sales NetworkManaging our Distributor and Sales Network12 XNY LISTED NYSEFinancial WherewithalVision for GrowthRapidly SalesNetwork ExpansionZero distributorturnover / zero bad debtsThe Results Are ApparentHas been working with23 out of 29 (2011-28,2010-26) distributorssince 2006KPIs and Market FeedbackSemi-Annual Strategy SessionsSource: Company information as at December 31, 2012
  13. 13. XINIYA | 希尼亚希尼亚希尼亚希尼亚BiBi--annual Sales Fairannual Sales Fair13 XNY LISTED NYSEWe generatesubstantially all of ourrevenues through ourtwo sales fairs, attendedand orders are placed bydistributors andauthorized retailers.Sales fair typically held in Apriland September, sales orders are:Distributors and authorized retailers placed their orders from about 1,000designs each sales fair.Production based onconfirmed and non-cancellable orders.Apr 2011Sep 2011Apr 2012Sep 201229%26%11%2%
  14. 14. XINIYA | 希尼亚希尼亚希尼亚希尼亚EncourageoutletPromotionalActivities DuringHolidaysMonthly Retail SalesStats monitoring retailoutlet performanceEnd-of-SeasonSalesDiscountingRequiresInventory Management Initiatives at Retail NetworkInventory Management Initiatives at Retail Network14 XNY LISTED NYSEoutletProfitabilitySalesInitiativesTraining initiativesto strengthen retailmanagementMarketingCampaigns toPromote BrandRequiresApprovalFuture ERP Initiatives to Connect Retail Outlets
  15. 15. XINIYA | 希尼亚希尼亚希尼亚希尼亚Xiniya’sXiniya’s Brand Spokesperson Is A PopularBrand Spokesperson Is A PopularEntertainment Icon in ChinaEntertainment Icon in China15 XNY LISTED NYSERenewed sponsorship contract with JackyCheung – a leading pop star in China –through 2013
  16. 16. XINIYA | 希尼亚希尼亚希尼亚希尼亚CCTVCCTV 2,2, 5 and 125 and 12 –– DailyDaily Commercials onCommercials onNationwide Television ChannelsNationwide Television ChannelsCommercials up to 15 seconds featured Jackey Cheung dressed in Xiniya’s menswearproductsCCTV 12 broadcast to an audience of nearly 900 million viewersXiniya’s TV commercial is shown daily at various hours during prime time of CCTV 12Xiniya sponsors “Moral Observation”, a daily prime time program and the most popularprogram on CCTV 12 that attracts about 54 million viewers weekly. It is similar to “60minutes” in the United States.16 XNY LISTED NYSE
  17. 17. XINIYA | 希尼亚希尼亚希尼亚希尼亚Flagship storesFlagship storesFour flagship stores in 2011:– Zun Yi City, Gui Zhou Province(250 sq meter/2,690 sq ft)– Harbin City, Heilongjiang Province(490 sq meter/5,270 sq ft)– Chengdu City, Sichuan Province(600 sq meter/6,450 sq ft)– Quanzhou City, Fujian Province(450 sq meter/4,840 sq ft)Two flagship stores in 2012:– Urumqi City, Xinjiang Province17 XNY LISTED NYSE– Urumqi City, Xinjiang Province(320 sq meter/3,444 sq ft)– Shenyang City, Liaoning Province(300 sq meter/3,229 sq ft)Expansion focus is in Tier 2 cities andbelow, which have had higher GDPgrowth rates vs. Tier 1 cities.Help to attract more authorizedretailers to join and increase brandequity among consumersXiniya has a total of 7 flagshipsoutlets
  18. 18. XINIYA | 希尼亚希尼亚希尼亚希尼亚All of our outlets are Xiniya-branded andsell Xiniya-branded products exclusivelyGross floor area of each outlettypically ranging from 500 sq ftto 3,500 sq ftoutlet looks and layout designed by usOur Retail OutletsOur Retail Outlets18 XNY LISTED NYSEoutlet looks and layout designed by us- outlet image upgrade every two years
  19. 19. XINIYA | 希尼亚希尼亚希尼亚希尼亚Management TeamManagement Team –– Experience and StableExperience and StableFounder– Introduced current business model in 2005– Has 23+ years of experience in China’s men’sapparel industry– Director at Quanzhou Textile and Garment Chamberof Commerce and Director of Shishi City HubinDistrict Chamber of Commerce– School of Continuing Education, Tsinghua University(Business Administration)Co-Founder Has 15+ years experience in financial reporting andauditing, with more than 13 years at PwC in variousMr. Qi Ming XUChairman& CEOMr. Kang Kai ZENG Mr. Chee Jiong NG19 XNY LISTED NYSEHas 14+ years of experience in China’s men’sapparel industry– Began working with the Xiniya brand in 1995– School of Continuing Education, TsinghuaUniversity (Business Administration)auditing, with more than 13 years at PwC in variousroles including Senior Manager– Financial Controller at Air-Sys RefrigerationEngineering Technology (Beijing)– University of New South Wales (Master ofCommerce / Corporate Finance)Has 15+ years of experience in marketing roles withinthe apparel industry– Deputy General Manager at Xiniya in 2006– Previously marketing manager at Fujian Tries– Zhejiang Gongshang University (Marketing)More than 10 years of experience as a fashiondesignerGraduated from a professional fashion designschool in 2002COO CFOMr. Tian De LIAO Mr. Ming Jiang LIUChief DesignerChief MarketingOfficer
  20. 20. XINIYA | 希尼亚希尼亚希尼亚希尼亚Revenue and Accounts Receivable SeasonalityRevenue and Accounts Receivable Seasonality-50.0100.0150.0200.0250.0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2010 2011 2012RMB mn Revenue20 XNY LISTED NYSEJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-100.0200.0300.0400.0500.0600.0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2010 2011 2012RMB mn Account Receivables
  21. 21. XINIYA | 希尼亚希尼亚希尼亚希尼亚Robust Revenue GrowthRobust Revenue Growth0200400600800100012001400889.31,180.01,383.7Revenue in RMB million050100150200250160.2183.0 214.1ASPASP in RMBPricing & Volume TrendsPricing & Volume Trends21 XNY LISTED NYSE02010 2011 20125,0005,5006,0006,5002010 2011 20125,6156,449 6,464Volume in Thousand Units-2004006008001,0001,2001,4001,6001,8002010 2011 20121,4041,607 1,710Retail outlets20310302010 2011 2012
  22. 22. XINIYA | 希尼亚希尼亚希尼亚希尼亚Quarterly ResultsQuarterly ResultsRevenue Gross Profit Margin122.4 135.6307.6 333.5159.3 176.9361.1482.8212.3 220.9417.9532.50100200300400500600Q1 Q2 Q3 Q42010 2011 2012RMBmn32.5%31.5%35.1%35.9%34.5%33.6%32.4%34.4%35.1% 34.3%34.1%33.0% 34.5%32.3%33.3%29.0%30.0%31.0%32.0%33.0%34.0%35.0%36.0%37.0%Q1 Q2 Q3 Q4 FY2010 2011 2012%22 XNY LISTED NYSEProfit Before Tax Net Profit After Tax2010 2011 2012 2010 2011 201236.6 38.8102.4110.842.9 46.594.8150.057.928.374.8 74.8- Q2 Q3 Q42010 2011 2012RMB mn31.6 34.289.596.832.1 35.471.8112.543.220.256.4 55.6- Q2 Q3 Q4RMB mn2010 - tax rate @ 12.6% 2011 - tax rate @ 25%2012 - tax rate @ 25%
  23. 23. XINIYA | 希尼亚希尼亚希尼亚希尼亚Superior operating cash flowsSuperior operating cash flows200250191208Operating cash flowRMB mn23 XNY LISTED NYSE0501001502010 2011 2012126