Pedestrians walk past a Bosideng shop in Shanghai in2021 Photographer: Qilai Shen/Bloomberg
Shares in China’s greatest home-grown down coat maker Bosideng International plunged by more than 15% at the Hong Kong Stock Exchange on Wednesday after the business stated billionaire chairman Gao Dekang would lower his holdings in the service.
Gao concurred to sell 400 million shares at a cost of HK$4.31 in a block trade with J.P. Morgan Securities (Asia Pacific), the statement stated. The disposal, which would raise HK$1.7 billion, or about $221 million, represents 3.6% of Bosideng’s overall released shares and is comparable to roughly 5% of shares held by Gao and his household. Gao, age 72, has a fortune worth $4.8 billion on the Forbes Real-Time Billionaires List today; his betterhalf Mei Dong, 56, and boy Gao Xiaodong, 48, are executive directors of the business.
Gao is selling the shares to “optimize the investor structure of the business, release market liquidity for the business’s shares and bringin more premium domestic and foreign financiers,” Bosideng’s declaration stated. The continues will likewise be utilized “for capital requires and advancement of charity work.” The sale is anticipated to be finished on July 5, the business stated.
The statement came after Bosideng last Wednesday reported revenue and sales boosts for the year ending March31 Sales increased by 38% to 23.2 billion yuan, or $3.2 billion, assisting to lift earnings by 43% to roughly 3.1 billion yuan, the business stated.
After reaching a near two-year high of HK$4.87 on June 28 on the positive revenues news, Bosideng’s stock closed at HK$4.01 in Hong Kong theotherday. In the past 12 months, Bosideng’s shares have got 16%; throughout the exactsame time, the Hong Kong Stock Exchange’s standard Hang Seng Index has decreased by 7.4% on mainland China and Hong Kong development concerns, and shares in Toronto-headquartered Bosideng competitor Canada Goose have lost 29.5% at the New York Stock Exchange.
China clothing billionaire Gao Dekang in2014 (Photo by Bennett Raglin/WireImage)
Rising domestic need assisted to fuel gains in Bosideng’s company in its last monetary year, the business stated last Wednesday. “Since the start of 2024, China’s financial rebound has preserved its momentum on the back of stable development,” it stated. “The nation’s financial restructuring likewise advanced gradually. The domestic market has likewise been rejuvenated. All this hasactually laid a strong structure of business’ sustainable, high-quality advancement and improved self-confidence.”
Sales gains were led by its own Bosideng brandname, which benefitted from customer choice for regional names, the business stated. For the year ending March 31, the Bosideng branded down garments company increased by 42.7% to 16.8 billion yuan. “China’s growing cultural self-confidence hasactually injected inspiration to the advancement of domestic brandnames,” according to Bosideng.
Online sales for all of the business’s brandnames increased by 40.6% from a year earlier to 6.9 bi