DGAP-News: Joyou AG plans IPO in the Prime Standard on the Frankfurt Stock Exchange
(firmenpresse) - Joyou AG / IPO
11.03.2010 11:31
Dissemination of a Corporate News, transmitted by
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- IPO pursued for the first half of 2010
- Issue volume of more than EUR 100 million targeted
- Market leading specialist for branded faucets and other sanitary ware
products in China
- Strong sales and profit growth rates over last years
Frankfurt, 11. March 2010. Joyou AG intends to go public in the first half
of 2010 and aims to obtain a listing in the Prime Standard on the Frankfurt
Stock Exchange. The company with its operating business located in China
designs, produces and sells faucets and other sanitary ware products in
China under its brand name 'Joyou'. It is also engaged as a manufacturer of
Original Equipment Manufacturing/Original Design Manufacturing products for
international sanitary ware companies, wholesalers and trading companies in
the United States, Europe and Asia.
Strong market position in China
Joyou is one of the leading single-brand manufacturers of bathroom, kitchen
and other faucets in China in terms of revenues and was founded over 20
years ago. Joyou has established an extensive retail distribution network
in China with 2,527 retail points of sale as of 31 December 2009. The size
of its production facilities enables Joyou to benefit from economies of
scale by sourcing raw materials, finished products and production equipment
more cost efficiently as it can purchase these items in larger quantities.
Joyou intends to double the number of its retail points of sale in the next
three to four years with a special focus on flagship stores and exclusive
stores. The current trend to urbanization, rising wealth and retail
consumption levels as well as the growth of the Chinese middle classes are
expected to have a favourable impact on the sanitary ware industry in China
and on Joyou's business.
Strong sales and profit growth rates
Joyou's total revenues increased from EUR 44.9 million in 2007 to EUR 135.0
million in 2008 and to EUR 172.3 million in 2009, corresponding to a
compound annual growth rate of 96% over this period. The operating profit
(EBIT) of Joyou grew by a compound annual growth rate of 97%: from EUR 10.0
million in 2007 to EUR 25.0 million in 2008 and to EUR 39.0 million in
2009. Correspondingly, net profits of the company increased by a compound
annual growth rate of 69%: from EUR 7.8 million in 2007 to EUR 16.1 million
in 2008 and to EUR 22.3 million in 2009. Joyou had an average number of
2,503 employees in 2009.
International expansion
Currently Joyou generates approx. 80% of sales in the fast growing Chinese
sanitary ware market and China will remain the main focus of the company's
activities. Joyou is considering entering selected overseas markets in the
medium-term with a strong partner or with its own salespeople to sell its
own brand products, as the company believes that there are business
opportunities for high-quality products such as its own brand products at
competitive prices.
Listing in the Prime Standard on the Frankfurt Stock Exchange
The company is planning a public offer in Germany and Luxembourg as well as
private placements to institutional investors outside Germany, Luxembourg
and the United States. All of the shares for the basic transaction are
coming from a capital increase with the objective of raising more than EUR
100 million. Shares owned by the existing shareholders are being placed in
the context of the over-allotment option (Greenshoe Option).
Macquarie Capital (Europe) Limited and China International Capital
Corporation Hong Kong Securities Limited (CICC) are acting as Joint Global
Coordinators and Joint Bookrunners. Further syndicate banks are WestLB AG
and DZ BANK AG.
Joyou plans to use the net proceeds that it will receive from the sale of
the new shares to finance the further expansion of Joyou. In particular,
Joyou plans to acquire a ceramic sanitary ware company, to establish new
production facilities for certain sanitary ware products, to expand its
faucet production capacity and to establish galvanization lines for
showerheads. The company also plans to establish approximately 1,000
additional retail points of sale in China, a dedicated brand advertising
campaign with its brand ambassador in China, Guo JingJing, a well-known
Chinese sports athlete, and to finance other corporate purposes such as the
further strengthening of financial, IT and risk management systems.
About Joyou
Joyou designs, produces and sells faucets and other sanitary ware products
in China under its brand name 'Joyou' and is also engaged as a manufacturer
for international brands and trading companies in the United States and
Europe as well as other emerging markets. Joyou is one of the leading
single-brand manufacturers of bathroom, kitchen and other faucets in China
in terms of revenues. Joyou has established an extensive distribution
network in China with 2,527 retail points of sales as of 31 December 2009.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian
Province in China. Joyou's five main product groups sold in its own brand
business are bathroom faucets, kitchen products, shower products as well as
other bathroom products and other faucets and sanitary hardware. In 2009,
Joyou realised group revenues of EUR 172 million, an operating profit
(EBIT) of EUR 39.0 million and a net profit of EUR 22.3 million employing
on average 2,503 persons.
Disclaimer
This publication is not an offer of any securities for sale or a
solicitation of an offer to purchase any securities. Subject to approval by
the German Financial Service Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht), a prospectus will be published, which will
be available free of charge from Joyou AG (www.joyou.de) and the syndicate
banks. Any shares will be offered exclusively on the basis of the
prospectus required to be approved by the German Financial Service
Supervisory Authority.
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of Joyou
AG (the 'Shares') have not been registered under the U.S. Securities Act of
1933, as amended (the 'Securities Act') and may not be offered orsold in
the United States unless registered under the Securities Act or pursuant to
an exemption from such registration. There will be no public offering of
the Shares in the United States and the Shares will not be registered under
the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
For further information, please contact:
Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden(at)kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar(at)kirchhoff.de
or visit the company website at: http://www.joyou.de
11.03.2010 11:31 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Joyou AG
c/o Joyou Industrial Park Luncang Town
362304 Nan'an City
China
Phone: +86 595 86188888
Fax: +86 595 86187886
E-mail: ian.oades(at)joyou.net
Internet: www.joyou.de
ISIN: DE000A0WMLD8
WKN: A0WMLD
Listed: Regulierter Markt in Frankfurt
Notierung vorgesehen / designated to be listed
End of News DGAP News-Service
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