- Xiniya is a China-based menswear brand listed on the NYSE. It is a top 5 brand in China with over 1,600 retail outlets nationwide.
- The company follows an asset-light, distributor-based business model where it appoints distributors and authorized retailers to operate most of its retail outlets.
- Xiniya engages in various marketing initiatives including TV commercials, celebrity endorsements, and flagship store openings to promote brand awareness across China.
2. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Safe Harbor StatementSafe Harbor Statement
This presentation contains "forward-looking" statements within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "target," "going forward," "outlook" and similar statements. Such
statements are based upon management's current expectations and current market and
operating conditions, and relate to events that involve known or unknown risks,
uncertainties and other factors, all of which are difficult to predict and many of which are
2 XNY LISTED NYSE
uncertainties and other factors, all of which are difficult to predict and many of which are
beyond the Company's control, which may cause the Company's actual results,
performance or achievements to differ materially from those in the forward-looking
statements. Further information regarding these and other risks, uncertainties or factors is
included in the Company's filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required under law.
3. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Who We AreWho We Are
Market
Positioning
Top 5 business casual
menswear brand in China
based on retail sales
Target
Consumers
Product
Positioning
Stylish yet comfortable
apparel suitable for work,
travel and leisure
White-collar male, with
average to high disposable
income, aged 25-45
3 XNY LISTED NYSE
Presence
Business
Model
Asset-light distributor model
Lean corporate structure
Consumers income, aged 25-45
Nationwide across 21
provinces, 4 municipalities
and 5 autonomous regions
# of Outlets
1,600+ Xiniya-branded
retail outlets
4. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Share Buyback ProgramShare Buyback Program
$1.8 million Share Repurchase Program according to SEC Rule 10b5$1.8 million Share Repurchase Program according to SEC Rule 10b5--11
In July, Xiniya announced a $1.8 million share repurchase program, which has been
effective on September 1, 2011 through December 31, 2012. The share buyback has
been and will be executed automatically and evenly over the mentioned time frame in
accordance with SEC Rule 10b5-1. Management believes Company’s stock is
undervalued, and the program will create value for shareholders.
Management commits personal fund to supplement repurchase
4 XNY LISTED NYSE
Qiming Xu, Chairman and CEO, would purchase up to $200,000
Chee Jiong Ng, CFO, would purchase up to $50,000
As at December 31, 2012, the results are as follows:
The Company spent $1,678,958, or 1,070,827 ADSs at $1.57;
Chairman spent $186,540, or 118,990 ADSs at $1.57; and
CFO spent $46,631, or 29,759 ADSs at $1.57.
Note that XNY as a foreign private issuer is not required to file Form 4.
5. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Our HistoryOur History
Establishment of
retail network, first
retail outlet opened
in Jan 2006
Recognized as a
“Well-Known
Trademark of
China”
2010
2nd outlet image
upgrade began
Completed
retail network
restructuring
First China
Apparel Company
listed on NYSE
via IPO in
Nov 2010
2009
2008
5 XNY LISTED NYSE
Registration
of “Xiniya”
trademark
1993
Recognized as a
“Fujian Famous
Trademark” Signed Jacky
Cheung as our
brand
spokesperson
Surpassed 1,000
retail locations
1st outlet image
upgrade
Tripled revenue
and net income
in three years
Nov 2010
2007
2006
2005
7. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Product PositioningProduct Positioning
Classic
Actual consumer
group:Age 25~45
Actual age group
7 XNY LISTED NYSE
Fashion
The main
consumer
group:
Age 30~40
StyleElegant
and stylish
Urban
leisure
Urban
fashion
8. XINIYA | 希尼亚希尼亚希尼亚希尼亚
# of Outlets
CompetitionCompetition
Septwolves
3,249
3,525
3,268
3,976
China’s business casual menswear market is still fragmented,
without dominant brand in the market
8 XNY LISTED NYSE
Source: Listed companies data
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Xiniya
Joe One
China Lilang
1,181
2,430
2,561
1,404
2,710
2,885
1,607
3,140
3,268
2011
2010
2009
9. XINIYA | 希尼亚希尼亚希尼亚希尼亚
We target Tier 2 and below cities,
prefectures and counties in China:
Large unexplored market potential
More attractive growth dynamics
Little penetration by international
brands
Over 3,000 Tier 2 and below cities
Tier 2-4
Cities and
Regions
Current
Xiniya outlet Distribution (by # of cities)
71% (2011-74%,
29% (2011-26%,
2010-23%)
Impressive Growth PotentialImpressive Growth Potential –– Breadth and DepthBreadth and Depth
Unexplored
9 XNY LISTED NYSE
10+ outlets
in 4 cities
(2011-12,
2010–8)
and regions in China(1), Xiniya
currently has outlets in only 2012-
933 (2011-838, 2010–749) of them
We also see significant room for
growth in our existing geographies
where we could increase market
penetration substantially
Source: Company information as at December 31, 2012
1 outlet in 587
cities (2011-537,
2010–498)
71% (2011-74%,
2010–77%)
Xiniya outlet Penetration (by # of cities)
6 - 10 outlets in
33 cities (2011-
24, 2010–18)
Tier 2-4
Cities and
Regions
2–5 outlets in
309 cities
(2011-265,
2010–226)
10. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Heilongjiang
83
Jilin
35
Xinjiang
69
Shandong
80
Tianjin
4
Hebei
41
Inner Mongolia
44
Gansu
24
Ningxia
4
Shanxi
34
Beijing
1
Liaoning
80
Distributor NetworkDistributor Network
10 XNY LISTED NYSE
60 or more retail outlets
40 to 59 retail outlets
20 to 39 retail outlets
Less then 20 retail outlets
Outlets Breakdown by Channels
(as of December 2012)
Channel
# of
Partners
# of
Outlets
Company Operated 1 2
Distributors 29 118
Authorized Retailers 1,378 1,590
Total 1,710
Sichuan
73
Anhui
47
Qinghai
Yunnan
70
Henan
97
Shanghai
1
Jiangsu
66
Tibet
Guizhou
58
Guangdong
64
Hainan
2
804
Shaanxi
53
Chongqing
69
Jiangxi
53
Hubei
82
Hunan
148
Guangxi
94
Zhejiang
135
Fujian
97
Source: Company information as at December 31, 2012
11. XINIYA | 希尼亚希尼亚希尼亚希尼亚
1,590 outlets
managed by
authorized
retailers
118 outlets
directly
managed by
distributors
2 flagship
outlets operated
by Xiniya
End
Consumers
$100
Xiniya
$27
29
Exclusive
Distributors
$41 1,378
Authorized
Retailers
$50
Our Business ModelOur Business Model
Assuming a unit retail price of $100, the chart below illustrates the profitability model.
11 XNY LISTED NYSESource: Company information as at December 31, 2012
Highlights of the Distributor Model
Local Expertise
Limited
Resources
and Capital
Streamlined,
Simple
Distribution
Network
Rapidly
Expanding
Sales Network
and Service
Platform
$50
12. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Industry Experience
Deep Local and Regional
Sales Network
Financial Wherewithal
We Select Distributors Rigorously…
Weekly Reporting of Sales at the
Retail Level
Bi-Weekly Meeting to Discuss
KPIs and Market Feedback
…and Work Very Closely with Them
Dedicated Team of 90+ to Monitor,
Provide Support and Guidance
Managing our Distributor and Sales NetworkManaging our Distributor and Sales Network
12 XNY LISTED NYSE
Financial Wherewithal
Vision for Growth
Rapidly Sales
Network Expansion
Zero distributor
turnover / zero bad debts
The Results Are Apparent
Has been working with
23 out of 29 (2011-28,
2010-26) distributors
since 2006
KPIs and Market Feedback
Semi-Annual Strategy Sessions
Source: Company information as at December 31, 2012
13. XINIYA | 希尼亚希尼亚希尼亚希尼亚
BiBi--annual Sales Fairannual Sales Fair
13 XNY LISTED NYSE
We generate
substantially all of our
revenues through our
two sales fairs, attended
and orders are placed by
distributors and
authorized retailers.
Sales fair typically held in April
and September, sales orders are:
Distributors and authorized retailers placed their orders from about 1,000
designs each sales fair.
Production based on
confirmed and non-
cancellable orders.
Apr 2011
Sep 2011
Apr 2012
Sep 2012
29%
26%
11%
2%
14. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Encourage
outlet
Promotional
Activities During
Holidays
Monthly Retail Sales
Stats monitoring retail
outlet performance
End-of-Season
Sales
Discounting
Requires
Inventory Management Initiatives at Retail NetworkInventory Management Initiatives at Retail Network
14 XNY LISTED NYSE
outlet
Profitability
Sales
Initiatives
Training initiatives
to strengthen retail
management
Marketing
Campaigns to
Promote Brand
Requires
Approval
Future ERP Initiatives to Connect Retail Outlets
15. XINIYA | 希尼亚希尼亚希尼亚希尼亚Xiniya’sXiniya’s Brand Spokesperson Is A PopularBrand Spokesperson Is A Popular
Entertainment Icon in ChinaEntertainment Icon in China
15 XNY LISTED NYSE
Renewed sponsorship contract with Jacky
Cheung – a leading pop star in China –
through 2013
16. XINIYA | 希尼亚希尼亚希尼亚希尼亚CCTVCCTV 2,2, 5 and 125 and 12 –– DailyDaily Commercials onCommercials on
Nationwide Television ChannelsNationwide Television Channels
Commercials up to 15 seconds featured Jackey Cheung dressed in Xiniya’s menswear
products
CCTV 12 broadcast to an audience of nearly 900 million viewers
Xiniya’s TV commercial is shown daily at various hours during prime time of CCTV 12
Xiniya sponsors “Moral Observation”, a daily prime time program and the most popular
program on CCTV 12 that attracts about 54 million viewers weekly. It is similar to “60
minutes” in the United States.
16 XNY LISTED NYSE
17. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Flagship storesFlagship stores
Four flagship stores in 2011:
– Zun Yi City, Gui Zhou Province
(250 sq meter/2,690 sq ft)
– Harbin City, Heilongjiang Province
(490 sq meter/5,270 sq ft)
– Chengdu City, Sichuan Province
(600 sq meter/6,450 sq ft)
– Quanzhou City, Fujian Province
(450 sq meter/4,840 sq ft)
Two flagship stores in 2012:
– Urumqi City, Xinjiang Province
17 XNY LISTED NYSE
– Urumqi City, Xinjiang Province
(320 sq meter/3,444 sq ft)
– Shenyang City, Liaoning Province
(300 sq meter/3,229 sq ft)
Expansion focus is in Tier 2 cities and
below, which have had higher GDP
growth rates vs. Tier 1 cities.
Help to attract more authorized
retailers to join and increase brand
equity among consumers
Xiniya has a total of 7 flagships
outlets
18. XINIYA | 希尼亚希尼亚希尼亚希尼亚
All of our outlets are Xiniya-branded and
sell Xiniya-branded products exclusively
Gross floor area of each outlet
typically ranging from 500 sq ft
to 3,500 sq ft
outlet looks and layout designed by us
Our Retail OutletsOur Retail Outlets
18 XNY LISTED NYSE
outlet looks and layout designed by us
- outlet image upgrade every two years
19. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Management TeamManagement Team –– Experience and StableExperience and Stable
Founder
– Introduced current business model in 2005
– Has 23+ years of experience in China’s men’s
apparel industry
– Director at Quanzhou Textile and Garment Chamber
of Commerce and Director of Shishi City Hubin
District Chamber of Commerce
– School of Continuing Education, Tsinghua University
(Business Administration)
Co-Founder Has 15+ years experience in financial reporting and
auditing, with more than 13 years at PwC in various
Mr. Qi Ming XU
Chairman
& CEO
Mr. Kang Kai ZENG Mr. Chee Jiong NG
19 XNY LISTED NYSE
Has 14+ years of experience in China’s men’s
apparel industry
– Began working with the Xiniya brand in 1995
– School of Continuing Education, Tsinghua
University (Business Administration)
auditing, with more than 13 years at PwC in various
roles including Senior Manager
– Financial Controller at Air-Sys Refrigeration
Engineering Technology (Beijing)
– University of New South Wales (Master of
Commerce / Corporate Finance)
Has 15+ years of experience in marketing roles within
the apparel industry
– Deputy General Manager at Xiniya in 2006
– Previously marketing manager at Fujian Tries
– Zhejiang Gongshang University (Marketing)
More than 10 years of experience as a fashion
designer
Graduated from a professional fashion design
school in 2002
COO CFO
Mr. Tian De LIAO Mr. Ming Jiang LIU
Chief Designer
Chief Marketing
Officer
20. XINIYA | 希尼亚希尼亚希尼亚希尼亚
Revenue and Accounts Receivable SeasonalityRevenue and Accounts Receivable Seasonality
-
50.0
100.0
150.0
200.0
250.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012RMB mn Revenue
20 XNY LISTED NYSE
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-
100.0
200.0
300.0
400.0
500.0
600.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012
RMB mn Account Receivables