City Beauty: More Than 300 Stores, Set Foot In Children'S Wear Market

Urban beauty reported in 2017. As of the end of December 31, 2017, the group achieved an income of 4 billion 542 million yuan, an increase of 0.7% over the previous year, a profit of 420 million yuan, an increase of 37.4% over the same period last year, and a profit of 317 million yuan for the company's equity holders, an increase of 31% over the same period last year.

Urban beauty said that in 2017, the group adjusted sales and distribution channels, closed many stores that recorded losses (mainly in department stores and streets), and increased the strength of larger new stores and renovated existing stores in suitable locations, and opened large discount outlets in the three or four line of the mainland of China, enhanced the development of e-commerce channels, and developed southeast Asian markets with business partners.

Due to closing many stores that recorded losses, the net number of stores dropped by 362.

In addition, sales accounted for only about 1% of the group's sales in 2016, and the number of stores fell by 108.

By the end of 2017, the group's distribution network consisted of 7181 stores, 1290 of which were self operated stores and 5891 were franchised stores.

Despite the closing of stores, urban beauty increased more categories in 2017.

City beauty said that in 2017, the company introduced new products such as seamless soft steel ring bra, upright cotton mold cup, Tai Chi stone cup, household clothes made of cationic antistatic fabric, and signed a cooperation agreement with the domestic enterprise, Kimuratan (Corporation) and Japan's listed company, to distribute its babies and children online in mainland China on 2017.

Widening the product line of the group and grabbing the breakdown of children's clothing.

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Another active activity of urban beauty is investment in mergers and acquisitions.

Urban beauty said that the group will actively seek opportunities for acquisitions, equity participation or cooperation, so as to further develop the new business of the group's existing businesses and synergies with existing businesses in the industry adjustment.

In April 26th, the city beauty announced a total of 121 million shares to Windcreek (Jingdong indirect wholly owned subsidiary), image structure investment (Tencent wholly owned subsidiary), vip.com and Quick Returns (wholly owned subsidiary of China Rui Holdings), with a subscription price of HK $4.2, placing the shares at 5.67% of the issued share capital and 5.37% of the issued share capital after the expansion.

Among them, Jingdong accounted for 56 million 50 thousand and 700 shares, Tencent accounted for 18 million 683 thousand and 600 shares, vip.com accounted for 18 million 683 thousand and 600 shares, and Sino Swiss holdings accounted for 28 million 25 thousand and 400 shares, holding 2.48%, 0.83%, 0.83% and 1.24% respectively.

In addition to the introduction of Tencent, Jingdong, vip.com and other Internet companies as strategic investors, urban beauty has announced the establishment of a joint fund with Jingdong.

In February 7th, the city beauty announced that the company's wholly owned Affiliated Companies Guangdong city beauty, Jingdong wholly owned Affiliated Companies century and Li Guocheng (as a representative of the fund management team) made major provisions.

According to the terms, the target size of the cooperative fund is expected to be RMB 1 billion yuan, and the scale of the fund will be expanded according to actual needs.

The investment target of the cooperative fund is mainly related to China's domestic and foreign companies involved in clothing brand, upstream and downstream and related peripheral industries.

City beauty said in its announcement that it hopes to use its experience in the industry of personal clothing products to carry out its main investments at home and abroad.

Industrial funds of related industries are used for mergers and acquisitions and resource integration suitable for group business.