Fosun Became The Second Largest Shareholder Of Urban Beauty, 2017 Net Profit Increased By 20%

Share prices linger for a long time.

(02298, HK), in May 8th, the share price jumped 9.17%.

Behind this, with the company's acquisition of Fuxing company's premium shares can not be separated.

After joining the stock market, Fosun will hold 11.18% of the capital stock after the expansion of the urban beauty, and become the second largest shareholder outside the city beauty and its partners.

Get Fosun premium to share with city beauty

On the evening of May 5th, the city beauty announced that the company entered into an agreement with the subscriber to issue 240 million new shares to the subscriber at the price of HK $2.5.

This price is 9.17% higher than the previous closing price of the company.

Where are the subscribers? The announcement of the city beauty shows that the subscriber is named Fosun Ruizhe Grace Investments Limited, a wholly owned subsidiary of Fosun international, mainly engaged in industry investment and investment management.

After completion of the subscription, Fosun will hold 11.18% of the capital stock after the expansion of urban beauty.

As news came out, in May 8th, the urban beauty price jumped 9.17% and closed to 6.11%, at HK $2.43.

Urban beauty said that the total amount of HK $600 million will be used as a company's sales and distribution channel reform, potential M & A, acquisition and cooperation projects and general liquidity purposes.

In addition, in May 5th, the city beauty also signed a strategic cooperation agreement with Fosun Group. The two sides made use of their resources, expertise and experience to explore the possibility of various deep cooperation, further promoting the urban beauty in China's personal clothing field.

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In May 8th, Sha Li, vice president of urban beauty, told reporters that many investors would be interested in urban beauty. The reason why the company chose Fosun was its strong resource integration capability, and hoped to bring some management improvements to the company.

Net profit 2016 cut commitment 2017 net profit increased by 20%

In fact, the recent days of urban beauty are not easy.

In the first half of 2016, the company experienced the first net profit decline in 2011, and 2016's annual earnings report was even better. During the reporting period, the urban beauty realized 4 billion 512 million yuan in revenue, down 8.9% compared to the same period last year, and net profit fell by 55.2% to 240 million yuan over the same period.

The closing speed of the company is also accelerating. As of June 30, 2016, the number of stores decreased by 238 to 8371, and by the end of 2016, the number of stores has decreased by 985 to 7651.

Under such circumstances, Fosun set the conditions for the stock.

The announcement of the urban beauty shows that under the request of the subscriber, the controlling shareholder of the company undertakes to subscribe to the company. The company's revenue growth in 2017 is not less than 3% a year, and the income growth in 2018 is not less than 6%. In terms of net profit, the net profit of 2017 is not less than 20%, and the growth rate of 2018 is not less than 15%. That is to say, the net profit of 2018 should not be lower than that of 2016.

According to the data of 2016 annual report, the net profit in 2018 should not be less than 330 million yuan.

This promise is not a bad check.

The two sides agree that if the above goal can not be completed, the controlling shareholder will pay HK $100 million as compensation to the subscriber.

In the 2016 annual report, the company said that after a series of measures, it is expected that the revenue in 2017 will be at least comparable with that in 2016, and the operating profit will gradually improve.

Sha Shuang told reporters.

In the past few years, there are many practitioners when the threshold is low, but once the characteristics of the industry change, many practitioners will be greatly affected.

Therefore, since last year, the industry has undergone a shuffle process. After shuffling, leading enterprises will perform more prominently.

"We will have great opportunities for development in the next two years".

For more information, please pay attention to the world clothing shoe and hat net information report.