Modern Avenue Purchased 100% Stake In Yuenan Company For 490 Million Yuan.

Professional management

Brand local senior

Fashion Boulevard modern Avenue company intends to pay cash 196 million yuan to the counterparty, and issue 20 million 760 thousand shares with 14.16 yuan / share to purchase the 100% stake of Polytron Technologies Inc network at 490 million yuan.

At the same time, the company intends to set up a collection of not more than 230 million yuan, used to pay cash consideration and paction costs.

It is learned that Yuenan is mainly engaged in the development and operation of mobile Internet applications, and its subdivision industry belongs to the development and operation service business of mobile Internet social networking tools.

Yue Ran has developed more than 40 mobile social applications, including personalization tools, social assistant tools, and micro task tools.

It covers all mobile Internet platforms such as apple and Google. The main users are European and American users.

The results showed that in 2014, 2015 and 2016 1 to June, the business income of Yuenan was 9 million 735 thousand and 500 yuan, 20 million 159 thousand and 400 yuan and 32 million 655 thousand and 900 yuan respectively, with net profit of 7 million 889 thousand and 100 yuan, 14 million 172 thousand and 500 yuan and 16 million 976 thousand and 300 yuan respectively.

All shareholders promised that the net profit of the company in the year 2016, 2017 and 2018 will be no less than 33 million yuan, 45 million 500 thousand yuan and 61 million 500 thousand yuan respectively.

Li Jie, an analyst with Everbright Securities, said that the significance of the acquisition of modern Boulevard is mainly to enhance the Internet operation ability and speed up the pformation and upgrading of the company to the "Internet +" global fashion brand operators. The target company is a leading mobile social networking application developer, and has accumulated a large number of young user groups with certain spending power. As a wholly owned subsidiary of the listed company, it will help the construction of the modern Boulevard global fashion business platform of listed companies, and also help the listed companies expand the overseas market through the Internet while enhancing the global gene of the global fashion business platform.

The company will not only acquire a large number of user resources accumulated by the target company in the mobile social networking application tools, enhance the professional and operational capabilities of the company, but also introduce professional management teams, laying the foundation for building a new mode of full channel operation combined with offline integration. At the same time, the successful overseas Internet community product and technology experience will also promote the fashion business platform to develop the fashion social business in China, and finally realize the development strategy of "modern social interaction + global resources integration".

Li Jie believes that the purpose of this acquisition is to integrate resources from both sides and play a synergy and win-win role in product, technology, user and channel cooperation.

Our main customers are overseas, and the main customer groups are young users. It helps to expand the overseas market and promote sales and enhance the ability to integrate global resources. On the other hand, Yue's heart also helps modern Avenue develop mobile social networking tools to promote convergence, improve the layout of online channels, create online and offline resource linkage, and further tap consumer demand.

In Li Jie's view, the modern Avenue is still in the initial stage of pformation and upgrading, with the new business input increasing and short-term performance pressure. In the medium and long term, the boom of cross-border electricity supplier and fashion consumption industry is relatively high. In the future, the new business will gradually improve its performance with the gradual growth of the new business. At the same time, it will play a synergistic effect with the company as well as promote its performance.

However, the current paction still needs to be approved by the shareholders' meeting and approved by the SFC, and it is expected to be listed in the first half of 2017.

According to the financial report, in the first three quarters of 2016, the business revenue of modern Avenue was 517 million, an increase of 5.56% compared with the same period last year. The net profit attributable to shareholders of the parent company was 61 million yuan, down 550.63% compared with the same period last year. The third quarter achieved operating income of 147 million yuan, an increase of 25.54% compared with the same period last year, an increase of 33 million yuan compared with the same period last year, and a decrease of 218.61% compared with the same period last year.

Reporters noticed here that the development strategy of modern Boulevard in 2014 was upgraded from "international clothing brand retail enterprises" to "international apparel brand operators". In 2015, it was further upgraded to Internet + global fashion brand operators. The development strategy of "online service, offline inspection" was set up, and experiential upgrading was carried out by "consumer and user centered", and gradually promoted the strategic pformation of "modern social interaction + global resource integration", so as to build a modern Boulevard fashion business platform.

In order to promote pformation and upgrading, in 2015, 4 companies, including fashion e-commerce, cross-border e-commerce, Chinese overseas Chinese and fashion media, were established to complete the acquisition of LEVITAS51% equity.

With the company's positioning adjustment and vision upgrading, business focus has gradually shifted to modern Avenue platform business, and its own brand business objectives are positioned as product innovation and profit creation.

"The Limited by Share Ltd of Guangzhou's card slave road" has been renamed as "fashionable Boulevard fashion group Limited by Share Ltd".

On the same day, the modern Avenue cross border e-commerce website was formally launched and the modern milk daddy APP trial operation.

"MODERNAVENUE.COM modern Avenue" is a cross-border e-commerce platform built by the company. Through the three platforms of PC terminal, mobile terminal and social media, the international fashion brand resources such as cosmetology, skin care, fashion boutique, shoe bags, mother and baby cosmetology and so on are gathered together, giving users cross border experience combined with O2O mode.

Platform construction will be phased forward. After the PC terminal is launched, mobile APP, social media and other platforms will be launched in the future.

Modern Avenue has launched 5 years' strategic plan, starting from the orientation of fashion group, upgrading its business structure and relying on the technological advantages of European fashion brand resources and partner Silicon Valley as the representative, pforming "Internet +" global fashion brand operators.