Japan'S Co Founded The Textile Branch

In March 17th, the board of directors of the three symbiotic group decided to divide the textile business into a wholly owned subsidiary.

The new company will undertake all the business of the original textile business department, which is mainly engaged in garment OEM processing. The company has 100% of its subsidiaries.

It is reported that the name and capital of the new company have not yet been determined. The resolution will be put forward in the resolution of the board of directors held in May and submitted to the shareholders' meeting in June.

If approved, the new company will be formally established in October 1st, and the three co Sheng Xing has confirmed that Miki Kentsugu, the managing director of the group, is the first textile branch manager.

San Gong Sheng Xing group is restructuring its holding company. Besides the textile business, there are 4 main businesses, including brand affiliate, clothing planning, home textile daily necessities and real estate leasing.

Among them, the home textiles daily necessities business has been completed in 2002, and the home textile branch and daily necessities branch have been set up respectively.

During this period, the group integrated the textile business and withdrew from the OEM processing business facing the supermarket.

Group leaders hope that this segmentation can further enhance the overall efficiency of the textile business.

In 2007, the sales revenue of the three co Sheng Xing textile business was 12 billion 900 million yen, the sales profit was 168 million yen, the sales revenue of clothing business was 2 million 650 thousand yen, and the sales profit was 1 billion yen.

As the gap between the profitability of the two businesses is relatively large, the group hopes that segmentation can improve the speed of decision-making and improve the overall efficiency of the textile business.

After the division of the textile business is completed, the core business of the group headquarters is brand alliance and real estate leasing. In the future, efforts will be made to create "enterprise groups with lifestyle proposals".

Textile business assets account for less than 20% of the total assets of the three co Xing Hing Group. According to the relevant laws, the group could have adopted a simpler segmentation procedure without voting by the shareholders' meeting.

However, "taking into account that the textile business is the ancestral industry of the three branches of the Communist Party, and more than 110 employees will be pferred to the branch office, we will therefore vote on the general meeting of shareholders."

The head of the company has confidence in the adoption of the segmentation plan.