If successful, it will be the first Chinese outdoor stock
Chinese sun protection clothing brand Bananaunder filed to list on the Hong Kong Stock Exchange on 15 April, with CICC and Morgan Stanley being the co-sponsors.
Founded in 2013, this Hangzhou-based company was initially positioned as a mid-to-high-end umbrella brand with professional UV protection features, while to date, it has expanded its product matrix to include apparel, umbrellas, hats, accessories and footwear.
Previously, Bananaunder has completed Series A, Series B and equity financing in 2015, 2016 and 2021 with investors including Sequoia China, China Renaissance and Borchid Capital.
The company recorded sales revenue of CNY 2.4 billion in 2021, with a compound annual growth rate of 150.1% since 2019. Its adjusted net profit achieved CNY 136 million with a gross margin of 59.1%
Its hefty marketing outlay was the main contributor to its growing net loss, which increased from CNY 23.21 million in 2019 to CNY 5.47 billion in 2021. Among which, Bananaunder’s advertising and marketing expenses that were used to promote channels and brand awareness accounted for nearly a quarter of its total revenue in last year.
As more urban dwellers venture into local green spaces, a bunch of outdoor brands are jostling for a piece of pie. “UV protection is a perfect niche market, and Bananaunder seize this opportunity well,” said Chang Xin, founder of Borchid Capital.