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Several very temperamental men's leisure bags come!

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 In China's shoe industry, if you talk about Yuyuan Group (0551. HK), it should be unknown. Around the street, you can see that the international sports brand shoes worn on pedestrians'feet are basically from the Taiwanese OEM giant. But you may not know that the leisure bags and backpacks on the shoulders of pedestrians probably come from another Taiwanese manufacturer, Qili Group (1731.HK). Adidas, North Face, Under Armour, Timberland and other well-known European and American brands are long-term customers. It is worth noting that Yuyuan Group is actually the second largest shareholder (30%) of Qili Group, and the two sides can form a certain synergy in business.
 Recently, Qili Group has submitted to the Stock Exchange its post-hearing information collection, which will be listed in Hong Kong. The stock price of Yuyuan Group has risen more than 30 times since its listing. So, will this newly arrived beneficial group in the capital market be the next Nuggets opportunity?
I. Unique Business Model
Qili Group, founded in Taiwan in 1970, began to produce backpacks in the first factory in Dongguan in 1997. After more than 20 years of development, the company has grown into a leading manufacturer of leisure bags and backpacks designed, developed and manufactured by world-renowned brands and providing quality supply chain management services. Its products are sold in more than 85 countries in North America, Asia and Europe.
 The leisure bags and backpacks manufactured by the company can be divided into four parts: outdoor and sports (60.1%), function (23.6%), fashion and leisure (13.3%) and other (3.0%). Outdoor and sports are the most income-generating sectors. Each section can meet the needs of the corresponding groups for leisure bags. Outdoor and sports bags are designed to meet outdoor travel requirements, generally with large capacity; functional bags are designed for professional purposes, such as multi-pocket camera backpacks and waterproof backpacks; fashion and leisure bags are best understood, that is, the styles we can see everywhere on campus or in the street.
Although Qili Group's main business is to manufacture goods for customers, the company is different from OEM and ODM in the traditional sense. In addition to providing customers with manufacturing services, the company can also provide a series of value-added services at all stages of the supply chain from product development, product design optimization, raw material development, procurement, prototype production, production management, quality control to logistics and delivery to ensure the feasibility and commercial feasibility of mass production for customers.
Among them, the company attaches great importance to the development of product development business, and is committed to shortening the product development cycle, so as to help customers enter the market as soon as possible. Up to now, Qili Group has set up product development teams in Dongguan production base and Guangzhou production base. They all have the function of forming design and computer software, and can generate three-dimensional (3D) computer effects according to customer's design concepts. In fiscal year 2015, 2016 and 2017, 370 development teams have brought more than 300 new package designs to the company's three major customers.
Years of experience, as well as business model different from traditional OEM and ODM, make Qili Group stand out from the industry smoothly. Among the top ten brand owners of fashion leisure and outdoor sports bags and backpacks in the world (market share in 2017), the company has established long-term cooperative relations with seven of them. At the same time, the company currently has more than 30 brand owner customers, most of the partnerships are more than nine years.
According to the sales revenue in 2017, Qili Group is the largest practitioner in the global leisure bag and backpack manufacturing and supply chain management market, and the third largest operator in the global bag and backpack manufacturing industry, with a market share of 5.5% and 4.0%, respectively.