Seven Wolves Plan To Spend 300 Million Yuan On "Consumption" To Promote Strategic Upgrading Of The Company

The seven wolves announced in the evening of November 19th that in order to promote the strategic upgrading of the company, the professional advantage team was used to promote the pace of investment. The company intends to cooperate with Shanghai Hongzhang Cci Capital Ltd (hereinafter referred to as "Hongzhang capital") to launch the domestic RMB fund - Shanghai Hua Shang Hong chapter consumer investment center (limited partnership) (tentatively named by business registration), and invest in large and medium-sized enterprises of domestic consumption and retail.

The fund is managed by Hong Zhang capital as the fund manager. Its target raising scale is 600 million yuan, and the seven wolves as the cornerstone investor subscribed 300 million yuan.

As the cornerstone investor, the seven wolves have the right to appoint 1 members of the investment decision-making committee. Before the fund raising scale reaches 5 hundred million, the company has one vote veto on the investment projects.

The fund mainly invested in consumer brands, chain stores, retail enterprises and Internet related businesses.

The investment industry includes, but is not limited to, clothing, accessories, food, beverages, restaurants, supermarkets and other large consumer industries.

The investment strategy is growth and holding merger and acquisition mixed investment strategy.

The duration of the fund is six years.

It is reported that Hong Zhang capital is an investment management institution focusing on the consumption and retail sector.

In recent years, the seven wolves face the continuing downturn in macroeconomic environment and the impact of consumption demand pformation on traditional men's clothing industry.

In 2013, the performance of the seven wolves declined for the first time since its listing. The total operating income reached 2 billion 773 million yuan, and the net profit attributable to the owners of the parent company was 379 million yuan, down 20.23% and 32.44% respectively from the previous year.

In the first three quarters of 2014, the operating income was 1 billion 731 million yuan, attributable to the owners of the parent company.

228 million yuan, down 25.06% and 38.74% respectively compared with the same period last year, and the company urgently needs to carry out strategic pformation and upgrading.

The company has made clear the strategic direction of investment + industry, on the one hand, by optimizing the existing business of the "seven wolves" brand, reconstructing the market appeal of the "seven wolves"; on the other hand, building new profit growth points through investment in the fashion consumption field, and finally making the company into a fashion group with "seven wolves" brand as the leading group.

This cooperation will help the seven wolves.

Investment resources and rich experience in investment in the consumer and retail industry provide support and help to the company's investment and merger and acquisition in the field of consumption, help companies acquire new investment opportunities and new profit growth points, so as to further enhance the company's core competitive edge, enhance the company's ability to resist risks, expand the growth space of the company, and provide assistance for the realization of the company's strategic objectives.