Shandong Ruyi Group 3 Billion 999 Million Absorbs Overseas Assets To Win Downstream

At the end of 5 2010, a large-scale investment in Japan once again brought Shandong's will into the public view.

Shandong Ruyi group will spend 3 billion 999 million yen (about 290 million yuan) to acquire about 41% of Japanese well-known clothing operator RENOWN company, and Ruyi group will get 33 million 330 thousand shares of RENOWN company through the way of issuance.

After completion of the acquisition, Shandong Ruyi group will become the largest shareholder of the company.

Although the official website of RENOWN has released relevant information, Shandong Ruyi group still cautiously told reporters that the final confirmation still needs to be approved by shareholders' meeting held in Japan in July 28th.

The contention of channels is long-standing.

It is said that this is the first overseas investment made by Shandong Ruyi group. The RENOWN with brand operation and channel advantages will cooperate with Shandong Ruyi group.

Shandong Ruyi group securities department staff revealed that the acquisition and cultivation work will be completed by Ruyi technology group, and whether it will be injected into the listed assets is to see the future development.

When it comes to investment and merger, it is easy to recall that a year ago, Shandong Ruyi group plans to buy and buy ITAT without any result.

In June 15, 2009, ITAT's internal announcement said that in June 9th, the shareholders' meeting and board of directors studied the company's current situation and company development, and decided to introduce new shareholders with a capital increase of 500 million yuan.

After that, Shandong entered the ITAT with the will, but in August 17th, 2 months later, the official website of ITAT group announced its announcement of the merger with Shandong Ruyi group.

Comparing the two acquisition plans of Shandong Ruyi group for two consecutive years, we will find a common key word: channel.

"The overall development trend of the group will definitely extend to clothing and sales channels, from production manufacturers to brand operators, and create a fashion brand group."

Shandong Ruyi group securities department staff said.

Earlier, Shandong Ruyi group announced its annual report, and announced a motion to buy Apparel assets to major shareholder Ruyi Technology Group: it intends to acquire assets related to clothing related to Ruyi Technology Group in cash, and the main asset is the garment production line with an annual output of 2 million pieces.

It is estimated that the new revenue will be 100 million yuan and the net profit 20 million yuan after the completion of the acquisition.

The broker thinks the acquisition will pave the way for the company to open up the industrial chain of fabric and clothing business.

The reporter learned from the Securities Department of Ruyi group in Shandong recently that the assets are in the assessment stage.

Dongxing securities Chengyuan said: "the cost of production factors of textile enterprises is constantly improving, the cost of upstream textile enterprises will also be higher and higher, and the added value is less and less. The gross margin space is being compressed. If we do not think about changes, enterprises will go very difficult.

Therefore, the reality has forced the upstream textile enterprises to extend to the downstream of profit margins.

Many upstream enterprises in the textile industry have already begun to actively explore the downstream development of clothing and channels, with few successful people.

Cheng Yuan analysis said that upstream enterprises lack of channel experience is a key factor that hinders the upstream textile enterprises from extending to the downstream.

Now the brand terminal sales mode mainly adopts the way of franchisee and direct store. On the one hand, the market can hardly attract franchisees, especially the small and medium-sized textile enterprises before the enterprises really realize their profits.

On the other hand, the cost of building a direct store is huge. At the same time, the calculation of the cost of advertising input and output also makes the enterprise in a dilemma.

Once it fails, it will not only be damaged by profits, but may also drag on the original profit mode and operation state of the enterprise.

Shandong Ruyi group has used overseas M & a mode to directly absorb companies with mature brand operation experience to help the company pfer to the retail sector, and its effectiveness is worthy of attention.

The sample value is not enough.

Li Weimin, an analyst at Fortune Securities Research and development center, said he was very optimistic about the prospect of Shandong Ruyi group's acquisition of RENOWN, a Japanese listed company. "The acquisition has good timing and business fit, but it does not have a general sample role. When it comes to brand operation and retail, the textile enterprises need to take full consideration of their own conditions and asset quality when they adopt the acquisition mode."

Taking Shandong Ruyi's takeover as an example, RENOWN company has been losing money for 4 consecutive years. Its cash outflow is low and its share price is very low. However, its own management mode and channel are not a problem. Therefore, it provides an opportunity for intervention. At the same time, Shandong's strong purchasing power as a purchaser can help RENOWN alleviate the fund problem, provide high-quality fabric support, and realize the complementary utilization of the superior resources of both sides.

It is reported that RENOWN also took a long time to consider the acquirer. After weighing various factors, it finally chose to cooperate with Shandong.

For Dongxing's listed textile companies, which are interested in attracting high-quality assets, the first step is to find the right price and control the purchase cost.

Secondly, we should focus on whether the assets to be purchased are healthy, and the core elements such as internal management and business models can not be a problem.

In addition, we need to consider whether the acquisition of assets is in line with the urgent need of the company's strategic development and whether we can share the advantageous resources.

YOUNGOR also acquired the new Malaysia group of KELLWOOD company in 2008, introducing its advanced design and development capabilities, international operation capability and distribution network throughout the United States.

During the acquisition process, the company encountered the problem of high cost of the new Ma group. It was difficult to adapt to the situation at that time. YOUNGOR adjusted in the exploration and promoted the pfer of the new ma production base, thus greatly reducing the production cost. It also used the resource advantages of the industrial chain and the perfect sales resources of the new Ma group in the US, which brought steady orders growth to YOUNGOR, and at the same time promoted the sales of the new Ma company.

In 2008, YOUNGOR completed export revenue of 3 billion 685 million yuan, an increase of 241.64% over the same period, mainly from the business growth brought by the acquisition of new Malaysia.

However, some experts have suggested that the acquisition mode is not widely applicable to the spinning enterprises that want to develop downstream.