China’s CSMall Group goes to market for HK$481 million
Chinese online/offline jewellery retailer CSMall Group is seeking to raise HK$481.5 million via a Hong Kong listing.
The company intends to use the funds raised to expand and optimise its integrated online/offline retail structure, support its CSmall Gift promotion and other crossover marketing initiatives, develop online sales channels, develop its offline sales and service network, and for strengthening data collection and mining.
The CSmall Gift initiative is a cooperation with non-jewellery retailers and service providers.
From 2014 to last year, CSMall Group’s revenue and net profit both grew by more than 10 times. Revenue increased from about RMB290 million (US$45.8 million) in 2014 to RMB3.15 billion for the first 10 months of last year. Its net profit similarly grew from RMB9.67 million to about RMB97 million.
CSMall Group chairman/executive director/co-CEO Chen He says the jewellery retail market in Mainland China has seen a robust development.
He says a growing demand for diversified designs and brand value, the government’s strong support for “Internet Plus” initiatives and the development of the mobile Internet industry have contributed to industry growth.