Germany Yongjia Holdings Baleno Group And Strengthen Its Control

The famous Hongkong apparel Brand Company Baleno Texwinca controlling shareholder Texwinca Holdings Ltd. (0321.HK) de wing Jia group announced on Tuesday that it intends to increase its stake in Baleno group from 64% to 82% at a cost of HK $28 million.

According to the statement, Baleno group's net assets amounted to HK $1 billion 321 million 300 thousand as of the end of March, and 18% of the shares were equivalent to HK $237 million 800 thousand, and the paction price was 88.23% discount to net asset price.

The seller of the paction is De main Affiliated Companies.

Therefore, according to the HKEx listing rules, pactions are related party pactions.

According to the research data of the Greater China retail market, as of the end of March, in the 2018 fiscal year, the retail income of de wing Jia dropped 1.4%, from HK $4 billion 44 million 200 thousand to HK $3 billion 988 million 900 thousand, of which the same store sales fell 6.9%.

During the period, the mainland's retail business income was HK $3 billion 414 million, a decrease of 1.8% compared with HK $3 billion 476 million in the 2017 fiscal year.

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It rose by 190 basis points to 47.4% in fiscal 2018, including Baleno, S&K, I.P.Zone and Ebase.

Business profits were recorded from HK $14 million 94 thousand, while operating losses in HK $95 million 772 thousand were HK $95 million 772 thousand in the 2017 fiscal year, HK $EBITDA 1.02, and HK $11 million in the 2017 fiscal year.

As the main source of revenue in retail business, Baleno accounted for 82.1% of HK $3 billion 274 million in the 2018 fiscal year, an annual increase of 4.1%, and a HK $3 billion 144 million in the 2017 fiscal year.

Against this background, strengthening the control of Baleno, the main source of profit of the group's retail business, is obviously beneficial to the performance of the company in the current fiscal year.

After a one-time sale of HK $152 million in fiscal year 2017, the group plunged 36.5% to HK $304 million 300 thousand in the 2018 fiscal year, and 478 million 500 thousand HK dollars in the same period in the 2017 fiscal year.