IPO | Deying Holdings will start offering shares now and is expected to be listed on January 17

Futu News, December 30, this Thursday$B.DUCK SEMK (02250.HK)$The announcement was announced that it will issue 120 million shares from December 30, 2021 to January 7, 2022. The company plans to issue 120 million shares, including a public sale of 12 million shares and an international sale of 108 million shares, with an issue price of HK$2.05-3.45 per share, and 1,000 shares per lot. It is expected to be listed on January 17, 2022.

According to Frost & Sullivan's report, in terms of role licensing revenue in 2020, the company is the second-largest domestic actor intellectual property company, ranking fifth among all role intellectual property companies in China, with a market share of about 2.4%. Based on sales in 2020, the company's market share in the e-commerce market for intellectual property products in China is about 0.6%.

The company's core business is its intellectual property and brand. The business includes creating, designing and licensing self-created, owned and iconic B.Duck family characters, and brand management and marketing for such roles across multiple channels. Since B.Duck became popular in Hong Kong and the Chinese market, the company has created 25 other characters, namely B.Duck's family members and friends, including but not limited to Buffy, B.Duck Baby, Dong Duck, and Bath'N Duck.

In terms of financial conditions, from 2018 to 2020, the company's total revenue was HK$201 million, 243 million, and the first half of 2021 was HK$124 million, up 33% year on year; from 2018 to 2020, the company's net profit was 10 million, 24 million and 55 million, and net profit for the first half of 2021 was HK$17 million, up 23% year on year.

Based on the revenue scale of the licensing market in mainland China, the market's revenue reached HK$4 billion in 2020, and is expected to reach HK$6.8 billion in 2025. The compound growth rate is expected to reach 10% from 2021 to 2025.

In terms of financing, the company plans to use the net proceeds from the global sale for the following purposes: about 25.8% will be used to enhance the brand image and popularity of its intellectual property role; about 25.7% will be used to establish the company's “fan platform”; about 17.5% will be used to strengthen the company's new economic online sales channels; about 11.8% will be used to further enhance the company's internal design capabilities to provide creative and innovative solutions by hiring about 60 additional designers; about 9.2% will be used to repay the company's existing debt of about 40 million as of October 31, 2021 HKD to improve the Group's balance to liability ratio; and approximately 10% will be set aside as general working capital.

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