Zhejiang Busen Fashion Co., Ltd. recently issued a public notice announcing that the Company has been approved by the China Securities Regulatory Commission and publicly issued 23.34 million RMB ordinary shares (A shares) to the public, with a par value of RMB1.00 per share and an issue price of RMB16.88 per share, Raised funds amounted to 393,979.2 million yuan, net of issuance costs 33,157,340 yuan, the net proceeds of 3.6082186 billion yuan. The raised funds are mainly used for investment in terminal channels, to expand direct sales outlets "comfortable life concept store" coverage area. According to Busen shares previously announced "initial public offering of shares (A shares) prospectus," the company originally planned in recent years in 26 cities across the country to build 26 comfortable life concept stores and direct sales flagship store. In the next few years, it will operate in key strategic cities such as Beijing, Hangzhou, Shenyang, Guiyang, Lanzhou and Hefei, as well as Jinhua, Jiaxing, Taizhou and Wenzhou in Zhejiang Province, Wuhu, Chaohu, Huangshan, Huaibei and Tongling in Anhui, Dalian, Qinhuangdao in Liaoning , Anshan, Tieling, Yingkou and other cities to open a new "comfortable life concept store." Through the establishment of these direct sales stores, hoping to fully display products and business philosophy, expand brand influence, relying on the production base to consolidate the existing market share, while the development of affiliated franchise stores. However, in the past two years, Busen's share-based marketing network has developed rapidly. The existing network has partially covered the above-mentioned planned cities. Moreover, the domestic consumer market and commercial real estate environment have also undergone major changes. Therefore, within the next few years, Busen will adjust its network based on the originally planned 26 regions, select new cities of strategic importance in the country and expand the direct operation network. The investment amount of the marketing network construction project will not exceed the total investment amount of the original project plan. The total number of 26 direct investment stores planned to be invested as well as the total investment area will not change. In addition to increasing the construction of terminal direct sales stores, Busen shares have been moving continuously for the past two years. In April, the company announced its intention to invest 20 million yuan of its own funds funded the establishment of a wholly owned subsidiary - Hangzhou Mingpulai Si Clothing Co., Ltd .; In addition, its wholly-owned subsidiary Tongling Busen Garment Co., Ltd. will also invest "with an annual output 400,000 high-end jackets production line construction. " Busen shares through the Tongling Busen Garment Co., Ltd. capital increase the way the implementation of the project, the capital increase total 53.65 million yuan. At the end of 2010, the company expanded its new product line with the addition of the "Green Label" series designed for men aged 25-35 and the "Ming" series targeting the 30-40 year-old. Among them, the Green Label continued Busen original "black standard" series of cheap fashion product positioning, but the brand has improved; and "Ming" series is the company extended to high-priced products the main series, the product design style to the British wind the Lord. Hai Tong Securities believes that the green standard products will be opened by the end of 2011 80 stores, "Ming" series of mature sales revenue is expected to reach 2-3 billion. The introduction of the new product series made Busen shares products have a greater degree of expansion in the price level and consumer groups, through product segmentation, the positioning of the terminal market more accurate, help companies to explore the depth of the market segments. Guoxin Securities believes that Busen shares in the industry first proposed the "comfortable business men" concept, focusing on the selection of cotton, linen, wool and other natural and environmentally friendly fabrics. The growth of the Company is relatively stable with the second and third tier cities as the main market and the key regions as East China and South Africa. 2010 annual report shows that as of December 31, 2010, Busen shares total revenue of 5.345498 billion yuan, operating profit of 150.6451 billion yuan, gross profit margin of 28.18%. Among them, the operating income of shirt was RMB128.0667 billion, profit was RMB34.5014 million and gross margin was 26.94%. Suit business revenue was RMB109.23 million, profit was RMB34.8936 million and gross profit margin was 31.94%. Operating income of trousers was RMB165.8 million, operating profit was RMB28.4867 million, Interest rate 24.44%; Jacket operating income 96,736,500 yuan, profit 27,960,200 yuan, gross profit margin 28.90%. In addition, the export business accounting for 14.81% of the Company's main business revenue accounted for 79.6064 million yuan of operating income. Can be found, Busen shares shirts, suits and pants are the dominant categories, including the highest sales shirt, suit the highest gross profit margin, while overall sales of jackets to be improved, but a higher gross profit margin. Its shirts, suits and pants three products have also been identified as national Mianjian products. According to recently released semi-annual report shows that in the first half of 2011, the company achieved operating income of 257 million yuan, operating profit of 21.8852.65 million yuan, total profit of 22.178807 million yuan, net profit of 16.8853328 million yuan, an increase of 26.99%, 3.86%, 3.84% and 10.22%. The main reason is that as the market expansion of the Company intensified, the network construction showed success and the company's brand image further improved, prompting a steady growth of the Company's performance. As of December 31, 2010, Busen clothing has a total of direct sales stores, counters 11, franchise stores, counters 752.