Cheerwin Group
Cheerwin Group Limited is an one-stop multi-category household care and personal care platform in China, developing and manufacturing a variety of household care, personal care and pet care products. Its household care products include a wide array of household insecticides and repellents such as mosquito coils and liquid vaporizers and a number of household cleaning products such as disinfectants, kitchen cleaners and toilet cleaners. Its air care products include a variety of air fresheners. The Group personal care products include skin care products, hair and body care products, hand sanitizers and Florida Water. Its pet care product includes a variety of pet shampoos and deodorants.
The Group provides consumers with comprehensive household care, personal care and pet care product offerings, mainly under seven core brands, namely, Vewin, Superb, Babeking , Cyrin, Rikiso, Juejiang de Weiba and Dux. It ranked third among domestic companies in China’s household care industry in each of the past five years between 2015 and 2019, and ranked fourth among all companies in China’s household care industry, with a market share of 6.3% in 2019, in terms of retail sales value according to CIC.
The Group manufactures certain of products at its Panyu and Anfu Plants and outsource the manufacturing processes of certain products to Liby Group and other third party manufacturers. It distributes products through an omni-channel sales network across China. As of September 30, 2020, its sales and distribution network primarily consisted of an offline network of more than 1,200 distributors with approximately 620,000 points of sales across China, 48 key account clients, including operators of national and regional hypermarkets, supermarkets, department stores and convenience stores through Liby Group, covering approximately 11,000 points of sales, and online channels, including sales to consumers through 14 self-operated online stores on major e-commerce platforms, such as Tmall, and sales to a network of online third party distributors.
| Market | Hong Kong (Main Board) |
| Business Nature | Household & Personal Products |
| Website | www.cheerwin.com |
| Board Lot | 500 |
| Registrar & Transfer Office | Computershare Hong Kong Investor Services |
| No. of Offer Shares | 333m shares |
| No. of International Offer Shares | 300m shares |
| No. of HK Offer Shares | 33.33m shares |
| Offer Price | $7.80 - $9.20 |
| Nominal Value | US$ 0.0000002 each |
| Stock Code | 6601 |
| Sponsor(s) | Morgan Stanley Asia Limited; China International Capital Corporation Hong Kong Securities Limited |
| Underwriter(s) | Morgan Stanley Asia Limited; China International Capital Corporation Hong Kong Securities Limited; Futu Securities International (Hong Kong) Limited |
| Application Period | Feb 26 (Fri) - Noon, Mar 3 (Wed) |
| Price Determination Date | On or Before 5pm, Mar 3 (Wed) |
| Result Announcement Date | On or Before Mar 9 (Tue) |
| Dispatch of Shares and Refund Cheques | On or Before Mar 9 (Tue) |
| Dealings in Shares commence on | Mar 10, 2021. (Wed) |
| Times of HK Offer Shares Subscription | 15X - 50X | 50X - 100X | Over 100X |
| % of total shares reallocated to HK Offer | 30% | 40% | 50% |
| Executive | Chen Danxia (Chairman), Xie Rusong, Zhong Xuyi |
| Non-Executive | Chen Zexing |
| Independent Non-Executive | Yu DeChao Michael, Guo Sheng, Chan Wan Tsun Adrian Alan |
| Cheerwin Global | 74.25% |
| (Year ended Dec 31) | |||
| 2020 * | 2019 | 2018 | |
| Revenue | 1,461,375 | 1,383,402 | 1,350,073 |
| Gross Profit | 626,530 | 599,860 | 502,125 |
| Pre-Taxed Profit | 271,316 | 232,216 | 241,562 |
| Attributable Profit for the period | 205,291 | 185,164 | 177,035 |
| EPS - Basic (cents) | 20.66 | 18.70 | 17.88 |
| * For the nine months ended September 30, 2020. | |||
| Offer Price | $7.80 - $9.20 |
| Capitalization | $10,400m - $12,267m |
| Unaudited pro forma adj NAV / share | $2.07 - $2.40 |
| Assuming the offer price being at the mid-point of $8.50, the net proceeds raised would be HK$2,663.9m, of which: |
| * $532.8m (20.0%) use to enhance research and development capabilities, including research and development of new products, upgrade of existing products, development of new brand and categories; |
| * $532.8m (20.0%) use to enhance sales and distribution network; |
| * $399.6m (15.0%) use for marketing activities to enhance branding and products promotion; |
| * $266.4m (10.0%) use to improve the efficiency and flexibility of global and domestic supply chain; |
| * $266.4m (10.0%) use to implement digitalization strategy, enhance information technology infrastructure; |
| * $399.6m (15.0%) use for strategic acquisitions of upstream and downstream businesses; |
| * the balance of $266.4m (10.0%) as additional working capital. |
| 10/03/2021 16:08 |
| {New Stock}CHEERWIN GP(06601) ends down 13.15% at HK$7.99 |
| 10/03/2021 09:20 |
| {New Stock}CHEERWIN GP(06601) opens down 14.24% at HK$7.89 |
| Code | Name | Nominal | Change | %Change | |
| 01259 | PROSPER FUTURE |  | 0.081 | 0.000 | 0.000% |
| 01338 | BAWANG GROUP | | 0.118 | 0.000 | 0.000% |
| 06601 | CHEERWIN GP |  | 8.280 | -0.020 | -0.241% |
| 06993 | BLUE MOON GROUP |  | 10.680 | 0.180 | 1.714% |
| Remark： | The above information is referenced from the prospectus. |
| All data is calculated from the non- exercise rights(if applicable). | |
| Quote data is at least 15-min delayed，last updated: 14/04/2021 09:36 |
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