Toread Holdings Group Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Toread Holdings Group Co., Ltd.

Toread Holdings Group Co., Ltd. was founded in 1999 and is headquartered in Beijing, China. The company specializes in outdoor apparel and equipment, targeting enthusiastic outdoor adventurers. Initially, it began by producing backpacks and has since diversified into a range of outdoor clothing and equipment.

By 2004, Toread was officially listed on the Shenzhen Stock Exchange under the ticker symbol 300005. The initial public offering (IPO) helped the company raise approximately **¥300 million** (approximately **$47 million** at the time). This capital injection enabled Toread to enhance its production capabilities and expand its product line.

In 2010, the company reported revenue of **¥800 million** (about **$126 million**) with a net profit margin of **9%**. The growth trajectory continued, with revenue reaching **¥1.3 billion** (approximately **$205 million**) in 2015. By this time, Toread had established its brand presence and increased its market share significantly.

As of 2021, Toread Holdings Group recorded an annual revenue of **¥2.1 billion** (around **$320 million**) with a net profit of **¥380 million** (about **$58 million**). The company has maintained a steady growth rate of **14%** year-over-year in terms of revenue, reflecting strong market demand for outdoor activities propelled by increasing interest in health and wellness.

In response to growing global demand for sustainable products, Toread Holdings has shifted its focus towards environmentally-friendly materials and manufacturing processes. The company has invested in research and development, allocating **10%** of its annual revenue to innovation. By 2022, the company aims to have **30%** of its product line featuring sustainable materials.

The international expansion of Toread took shape in the late 2010s, as it began establishing partnerships with foreign outdoor brands and expanding its retail presence across Asia and Europe. As of mid-2023, Toread operates over **1,000** retail outlets across China and has begun to penetrate markets in countries such as Japan and South Korea.

Toread is also actively engaging in e-commerce, with an online sales growth rate of **25%** in the past year, facilitated by platforms such as Tmall and JD.com. The digital sales strategy has become increasingly significant, accounting for **45%** of total sales by the end of 2022.

The firm’s commitment to outdoor sports and environmental preservation has also led to collaborative initiatives with local governments and NGOs, aiming to promote outdoor activities. By 2023, Toread has sponsored over **200** events promoting outdoor sports and conservation efforts, reinforcing its brand ethos within the community.

A Who Owns Toread Holdings Group Co., Ltd.

Toread Holdings Group Co., Ltd. is a prominent player in the Chinese outdoor and sports apparel market. As of the latest financial reports, the company is publicly traded on the Shanghai Stock Exchange under the ticker symbol 603099. The ownership structure of Toread is characterized by a mix of institutional and individual investors.

As of the end of 2022, the major shareholders of Toread are as follows:

As of the first quarter of 2023, the total shares outstanding for Toread were approximately 444 million, with a market capitalization of around ¥12 billion (approximately $1.7 billion). The company's business focuses on outdoor gear, including clothing, footwear, and accessories, which has been a growing sector in China.

In recent developments, Toread has seen fluctuations in its stock price. As of October 2023, the stock traded around ¥27 per share, reflecting an increase of approximately 15% year-to-date. The company reported a revenue of ¥3.2 billion in 2022, showing a growth rate of 10% over the previous fiscal year.

The ownership dynamics are also influenced by market trends, with institutional investment being a significant factor in stock price stability. In 2022, institutional investors held approximately 31% of the total shares, signaling confidence in Toread’s strategic direction and growth potential.

Furthermore, Toread's annual report indicated a net profit margin of 8.5%, showcasing efficient operations in the competitive outdoor apparel market. The company's recent initiatives include expanding its e-commerce presence, which accounted for roughly 40% of its total sales, a key growth area amid changing consumer behavior.

Toread Holdings Group Co., Ltd. Mission Statement

Toread Holdings Group Co., Ltd., a prominent player in the outdoor apparel and gear industry in China, strives to promote a lifestyle connected with nature. The company's mission statement emphasizes a commitment to innovation, quality, and sustainability, fostering an appreciation for the outdoors among its customers.

The company’s mission can be summarized in several core tenets:

• Innovation: Continually developing new products that enhance outdoor experiences.
• Quality: Ensuring high standards in materials and craftsmanship.
• Sustainability: Focusing on eco-friendly practices in production and product lifecycle.
• Community Engagement: Supporting outdoor activities and initiatives that encourage public participation in nature.

As of the latest financial reports, Toread has shown robust growth aligned with its mission to inspire outdoor activities. The financial highlights include:

In 2023, Toread's revenue reached CNY 4.5 billion, reflecting an 11.1% increase from the previous year. The net profit amounted to CNY 450 million, showcasing a growth rate of 12.5%. The gross margin improved to 28%, indicating a focus on cost management and product quality.

Furthermore, Toread's commitment to innovation is evident in its R&D expenditure, which has steadily increased from CNY 150 million in 2021 to CNY 200 million in 2023. This investment underscores the company’s dedication to developing new, high-quality outdoor products that resonate with its mission.

In terms of market position, Toread is recognized as one of the leading outdoor brands in China, benefiting from a growing consumer appetite for outdoor activities. The company's market share has been estimated at approximately 15% within the outdoor apparel segment.

As part of its sustainability initiative, Toread has implemented several eco-friendly practices, including the use of recycled materials in its products and a commitment to reducing emissions during production. The company has set a target to increase the proportion of sustainable materials used by 20% by 2025.

How Toread Holdings Group Co., Ltd. Works

Toread Holdings Group Co., Ltd., commonly known as Toread, operates primarily in the outdoor gear and apparel industry. It specializes in the development, manufacturing, and retailing of outdoor products, including clothing, footwear, and equipment. The company has established a significant presence in China, leveraging both online and offline sales channels.

As of the end of 2022, Toread reported total revenues of approximately RMB 4.68 billion, showing an increase of 10.5% from the previous year. The gross profit margin stood at 40.7%, reflecting strong pricing power and operational efficiency.

Toread's business model integrates several key elements:

• Product Development: The company invests heavily in R&D, allocating around 5.1% of its total revenue to innovate new products relevant to outdoor enthusiasts.
• Manufacturing: Toread employs a mix of in-house manufacturing and outsourcing to ensure quality and cost-effectiveness. As of 2022, the company operated 15 manufacturing facilities.
• Retail Network: The company operates over 2,300 retail outlets across China, supported by e-commerce platforms, with online sales contributing to around 30% of total revenue.

In terms of market position, Toread has gained a leading role within the domestic outdoor gear market. As of 2023, it held a market share of approximately 12.3% in the outdoor apparel segment. Key competitors include major brands such as The North Face, Columbia, and local brands like 361 Degrees.

Toread has been proactive in enhancing its online presence, investing in digital marketing and partnerships with major e-commerce platforms like Alibaba and JD.com. The company’s strategy focuses on aligning products with the growing interests in outdoor activities, such as hiking, camping, and climbing.

In terms of future outlook, analysts project that the outdoor apparel market in China will expand by 10% annually through 2025, driven by increased consumer spending and a growing interest in outdoor activities. Toread aims to capture a larger share of this market by expanding its product range and improving customer engagement through digital channels.

Financially, Toread's strong performance is reflected in its return on equity (ROE), which was 12.8% in 2022, indicating effective management of shareholder equity. The company's debt-to-equity ratio stands at 0.45, suggesting a conservative approach to leveraging, further supporting financial stability.

Overall, Toread Holdings Group Co., Ltd. demonstrates a robust business model with a focus on product innovation, market expansion, and strong financial performance. Its ability to adapt to market trends and consumer behaviors positions it favorably for future growth within the outdoor gear industry.

How Toread Holdings Group Co., Ltd. Makes Money

Toread Holdings Group Co., Ltd. primarily generates revenue through its various business segments, including retail, wholesale, and brand management of outdoor gear and apparel. The company is known for its extensive range of outdoor products, which include clothing, footwear, equipment, and accessories. In recent years, it has also expanded into e-commerce, enhancing its distribution capabilities.

During the fiscal year ending December 31, 2022, Toread reported a total revenue of approximately RMB 3.8 billion, reflecting a year-on-year increase of 12% from RMB 3.4 billion in 2021. This growth can be attributed to the rising consumer interest in outdoor activities and the company's expanded product lineup.

• Retail Sales: The retail segment contributed around RMB 2.5 billion, accounting for over 65% of the total revenue.
• Wholesale: The wholesale business generated approximately RMB 1.1 billion, which is about 29% of the total revenue.
• Online Sales: E-commerce sales rose significantly, contributing nearly RMB 900 million to the retail segment, up from RMB 600 million in 2021.

The company's product offerings are diverse, with outdoor apparel and footwear being among the highest demand categories. The following table outlines Toread’s revenue breakdown by product category for 2022:

Toread's strategic initiatives to enhance its profitability include investments in marketing, brand collaborations, and product innovation. The company has formed partnerships with various outdoor sports organizations to increase brand visibility and consumer engagement. In 2022, its marketing and advertising expenses amounted to around RMB 250 million, up 15% from the previous year.

Furthermore, the company's operational efficiency is reflected in its gross profit margin, which stood at 38% for 2022, compared to 36% in 2021. This improvement indicates better cost management and pricing strategies.

Toread also focuses on sustainability, aligning with global trends toward eco-friendly products. In 2022, over 20% of its new products utilized sustainable materials, catering to the growing segment of environmentally conscious consumers.

Overall, Toread Holdings Group Co., Ltd. has established a solid revenue model that combines traditional retail with modern e-commerce strategies. By continuously innovating its product portfolio and effectively managing its operations, the company positions itself for sustained growth within the competitive outdoor apparel and equipment market.