The Guangdong Enterprises Signed A Hundred Million Lace Fabrics For The Big Brands Such As Wei And So On.

The world's largest women underwear material manufacturer, VictoriasSecret, hereinafter referred to as "hyper International Holdings", announced to Vitoria in May 3rd that the company's subsidiary Dongguan surpass and Dongguan Run Xin (as a supplier) and Dongguan quality goods (as buyers) entered into a sales agreement today, covering sales of elastic fabric, elastic webbing, lace, printing and embroidery, and the selling period is from May 4, 2019 to May 3, 2022 for a period of 3 years.

The agreement shows that Dongguan surpass and Dongguan run Shun will supply elastic fabrics, lace, printing and embroidery and elastic webbing to Dongguan quality products respectively.

The price range of the elastic fabric is between 5 yuan per meter and 200 yuan (including tax) for the people's currency.

The price range of lace ranges from 0.5 yuan to 80 yuan (including tax) per meter.

The price range of printing and embroidery is between 5 yuan and 40 yuan (including tax) per meter, or the price range ranges from 0.5 yuan to RMB 15 yuan (including tax).

The price range of elastic webbing ranges from 0.5 yuan to 2 yuan (including tax) per meter.

The sales volume of the sales agreement is 20 million yuan, 45 million yuan, 60 million yuan, and 30 million yuan respectively for 2019, 2020, 2021 and 2022.

The announcement shows that Dongguan surpass and Dongguan run Shun are both wholly owned Affiliated Companies of surpass International Holdings.

On the day of the announcement, Dongguan's quality products were owned by Mrs. Lu (Mr. Lu's spouse and sister Wu), Ms. Cheng (executive director and Mr. Zhang's spouse), Mr. Wu Junjie (Mr. Wu's son) and Mr. Lu Canping (Mr. Lu's nephew), respectively, with 50%, 30%, 10% and 10% shares.

Therefore, Dongguan's quality products are related to Mr. Lu, Mr. Zhang, Mr. Wu and Ms. Zheng, so the pactions under the sales agreement constitute continuous related pactions.

Super surplus International Holdings is mainly engaged in the production and sale of elastic fabric, elastic ribbon and lace, while Dongguan products are mainly engaged in the production and sale of ready-made garments.

In the past year, Dongguan has been buying fabrics and ribbons for its garments.

According to the sales agreement, the sale price and terms to Dongguan quality goods will not be better than the independent third party providers.

The conclusion of a sales agreement is conducive to the development of the group business and to the expansion of the group's revenue base, so as to improve the sustainability of the group in the long run.

Public information shows that the main products of hyper international holdings are divided into three categories: elastic fabric (including lingerie and sportswear fabrics), elastic ribbon and lace. It is a material manufacturer who can provide one-stop solutions for underwear, sportswear and other materials in the world. It can provide all related fabric products for downstream customers to manufacture underwear.

Under the highly decentralized market environment, the market share is close to 5% (the market share of industry Top5 is close to 15%). In the first place, the elastic fabric is ranked first, and the elastic ribbon is second. It is the largest underwear material manufacturer in the world.

Since 2013, hyper International Holdings has expanded its field to sportswear fabrics, and its demand is higher than that of underwear.

In 2016, the proportion of sportswear fabrics accounted for 18.4% of the total revenue of the company, an increase of 51.3% over the same period, and it is expected to continue to maintain rapid growth in the future.

The reporter learned that hyper International Holdings has established long-term and stable cooperative relations with many first-rate brands worldwide, and has established long-term strategic cooperative relations with many first-line brands around the world.

Underwear includes Victoria'sSecret (Vitoria secret), Wacoal (Wacoal), Triumph (Ttiumph), Marks&Spencer (Martha department store), Aimer (adore), Maniform (Man Nifen), Anli Fang, Chantelle, CK, and many other leading women's underwear brands.

Since 2013, surpass International Holdings has expanded its business to sportswear fabrics, and has established cooperative relations with UnderArmour (Andemar), Lululemon, Reebok and Adidas. With the rapid development of underwear and sportswear business, the company will continue to tap more target customers to enrich the order structure.

According to the data of reporters, in the year of 2018, surpass International Holdings achieved operating income of HK $3 billion 210 million, an increase of 14.9% compared with the same period last year, and net profit of HK $284 million, down 6.8% from the same period last year. The company said that the increase in business revenue was mainly due to the continued expansion of women's underwear and sportswear and clothing materials market, and the increase in sales volume of the group after the acquisition of Sri Lanka Affiliated Companies in August 2018.

In addition, net profit margin dropped to about 8.7%, down 2.2 percentage points from 2017.

The decrease in net profit rate was mainly due to the reduction of gross profit margin, the start-up cost of Sri Lanka business, the increase of Vietnam's business cost and the increase of financing cost, and the rise in cost caused by the appreciation of the renminbi against the Hong Kong dollar in the first half of 2018.