Nine Mu Wang Invested 76 Million 500 Thousand To Join Hands To Set Up A Joint Venture Company, Xiao Fox, To Operate Two Foreign Brands In China.

The local business casual men's clothing brand enterprise -- nine Mu Wang Limited by Share Ltd (hereinafter referred to as "nine herding king") announced in February 18th that the company signed the shareholder cooperation agreement with KitsuneFrance (hereinafter referred to as "Kitsune") in February 15th (hereinafter referred to as the "agreement"), and intends to jointly invest in the establishment of a joint venture, fox (China) Limited.

Fox (China) Co., Ltd. is mainly engaged in wholesale, retail, import and export of clothing shoes and hats, garment accessories, fiber products, needle textiles, leather bags, cosmetics and daily necessities, and provides related supporting services.

The agreement shows that the king and the Kitsune (hereinafter referred to as the "two sides") intend to give full play to their own advantages and jointly invest in the establishment of a joint venture company to carry out the business of "MaisonKitsun e" brand and "Kitsun e" brand clothing, accessories, bags, cosmetics and perfume products in mainland China, Hongkong and Macao area (hereinafter referred to as "operating areas").

Nine Mu Wang intends to invest 76 million 500 thousand yuan in cash and hold a 50% stake in the joint venture company. Kitsune intends to invest in the trade area including, but not only for clothing, accessories, bags, and the ownership of trademarks other than coffee, perfume and cosmetics, and holds 50% stake in the joint venture company.

KitsuneFrance was founded in Paris, France. The enterprise is Soci e t e paractionssimplifi e e (SAS). The registered address is 52RuedeRichelieu, 75001Paris, France, the legal representative is LoaecGildas, the registered capital is 289604 euros, and the main business is clothing sales.

The Kitsun e brand was founded in 2002 in Paris, France. It includes three major series: seasonal MaisonKitsun, classic Paris style MaisonKitsun e Parisien, and neutral art design ACIDEMaisonKitsun.

MaisonKitsun e brand has 17 separate stores in France, Japan, the United States, Korea and Hongkong, China. At the same time, more than 400 retail outlets in London, Copenhagen, Losangeles, Sydney, Tokyo, Hongkong, and other electronic business platforms such as Endclothing, MatchesFashion and Ssense are also available for sale.

As of March 31, 2018, the total assets of KitsuneFrance amounted to 14 million 447 thousand and 800 euros, with net assets of 4 million 680 thousand and 200 euros. The operating income of the latest financial year ending March 31, 2018 was 18 million 312 thousand and 700 euros, with net profit of 953 thousand and 500 euros.

(Note: the accounting period of KitsuneFrance is from April 1st to March 31st of next year).

According to the company's development strategy, the company will focus on the strategy of "platform, multi brand and all channels", and build "Seiko quality platform", "fashion quality platform" and "personality trend platform" to form a customer group ladder covering different age groups, and provide differentiated products and services to consumers with different styles.

At present, the company's three major apparel platforms have taken shape. The company has established a joint venture to operate the brand MaisonKitsun and Kitsun in mainland China, Hongkong and Macao, which further enriched the brand quality matrix of the company's "fashion quality platform", which is conducive to meeting the diversified and personalized consumption needs of consumers, and will further promote the company's strategic vision of becoming a leader in the leading fashion industry.

According to public information, the main brands of the nine herding kings are divided into three major platforms: the Seiko quality platform based on nine herd Wang and VIGANO brand, the fashion quality platform dominated by NASTYPALM and ZIOZIA brand, and the personalized trend platform based on FUN brand.

At the same time, the company carries out investment, brand building and development in the direction of these three brand platforms, and invests in new business, new technology and new mode for fashion industry.

In addition to the main brand of King nine, the main subsidiary brands of nine Mu Wang are self incubated FUN, NASTYPALM (original J1 brand), VIGANO and foreign investment acquired ZIOZIA.

Lv Ming, an analyst at Tianfeng securities, said that the main brand channel of nine herd Wang has been in the adjustment period in recent years. The number of Direct stores has dropped from 838 in 2014 to 685 in the three quarter of 2018. The number of franchisees has dropped from 2074 in 2014 to 1700 at the end of the three quarter of 2018, mainly due to the closure of inefficient stores and the adjustment of shopping malls.

According to the area, as of the 2018 three quarter, the area of 55001 square meters of Direct stores increased by 4.5% compared with the 52643 square meters at the end of 2017, and the 185 thousand and 700 square meters of franchised stores increased by 0.7% at 184 thousand and 400 184 thousand and 400 meters at the end of 2017, ending the downward trend of the past two years. The area of the newly opened large stores has increased beyond the impact of the closing area of the stores. The adjustment of the main brand channel is basically in place. It is estimated that the number of main brand channels will return to the level of open shop from 2019, and the area will continue to maintain a steady and steady trend.

Lv Ming believes that the overall style of the operation of the brand is built up upstream and downstream, ensuring supply chain resources and quality channels, expanding the brand, and playing a stable and stable style. Therefore, the sub brands represented by FUN have not had large-scale opening and expansion in the past few years, and are in the period of energy accumulation.

The development of various sub brands is expected. After several years of development, the Fun brand profit scale is expected to expand in 2019. ZIOZIA is expected to break even. The NASTYPALM brand development time is still short or slight, and it is expected to be profitable in 2020. In the short term, most new brands are expected to exceed the breakeven point in 2019-2020.

Data show that in 2018 the three quarterly report, nine Mu Wang realized business income of 1 billion 921 million yuan, an increase of 7.74% over the same period, attributable to the parent company's net profit of 350 million yuan, an increase of 1.86% over the same period.