*ST HM's Smart Meter Business Is Spanferred To A Subsidiary To Serve The Collection Of Electricity Information In China Southern Power Grid.

High-end brand The Limited by Share Ltd of Shenzhen Herme group, which has been spanformed by operators, announced in the evening of June 18th that the company intends to spanfer the whole business of the high-end manufacturing department to a wholly owned subsidiary, Guangdong Hao Ning Da Industrial Co., Ltd. (hereinafter referred to as "Hao Ning Da Industry"), including the qualification, assets, technology and management system of the business of the high-end manufacturing department (including the smart electricity meter, power grid information collection related business such as the former national power grid, China Southern Power Grid, etc.), as well as the spanfer of fixed assets and intangible assets related to some manufacturing related equipment, and the company intends to sign the "procurement contract" with *ST.

Due to the spanfer of fixed assets and intangible assets related to some manufacturing related equipment, *ST Hery intends to sign the procurement contract with Ho Ning Da industries. Among them, the spanfer price of fixed assets and intangible assets for manufacturing related equipment is 10 million 525 thousand and 300 yuan (including tax) according to the book value of the spanferred assets. After the spanfer, the related business of the high-end intelligent manufacturing sector will be completed by Ho Ning Da industries. The company will no longer participate in the production, bidding and operation of related businesses. The relevant business and after-sales service of the original company will also be undertaken by Ho Ning Da industries. *ST Herme will co-ordinate the operation of the major business segments and realize the platform group management mode.

Ho Ning Da industry was established in September 28, 2000 with a registered capital of 100 million yuan.

*ST said that the company's internal spanfer and integration of smart meter business related assets from the perspective of optimizing internal resource allocation and serving endogenous development strategy is conducive to strengthening the unified management of smart meter business and improving the overall synergy effect of smart meter business. Through the spanfer of internal assets, we further straighten out and clarify the business management system, which is conducive to reducing management costs, improving decision-making efficiency, realizing the coordinated operation of business, capital, personnel and other elements, integrating operational resources, helping the group intelligent manufacturing sector business and the rapid development of its businesses, in line with the long-term development goals of the group and the interests of shareholders.

Public information shows that *ST was founded in 1994 in Shenzhen, formerly known as Shenzhen Hao Ning DA Instrument Limited by Share Ltd, initially engaged in the development and manufacture of electronic energy metering instruments. In 2010 Shenzhen Stock Exchange After the listing, it continued to spanform its business through acquisitions. In 2013, the acquisition of every gram of Latin America was the first step in the spanition from manufacturing to manufacturing. In May 2016, the company was officially renamed the Limited by Share Ltd of Herme group, Shenzhen. In 2017, he bought three European blue, lofty department stores, rainbow group and so on. extravagant The agency formally spanformed into luxury agents. At present, the company's business is mainly divided into four parts, the high-end manufacturing sector, the diamond jewelry sector, the financial sector, and the luxury agency sector.

*ST Herme now operates high-end international brands including MCM, FURLA and MSGM. In 2018, the company achieved a total revenue of 1 billion 917 million yuan, down 20.44% from the same period last year. The net profit attributable to shareholders of listed companies was -16.14 billion yuan, down 1221.45% from the same period last year.

Sales of diamond jewellery dropped by 52.42% over the same period last year, mainly because the company's atomic company was sold at the end of 2017 per gram. In 2018, it was no longer included in the company's consolidated statements, resulting in a decline in sales of diamond jewelry.

The production of electric energy meters decreased by 82.73% compared with the same period last year, and the inventory volume dropped by 84.57%. This is mainly due to the difficulties in capital turnover of the smart meter manufacturing section in the current report period, and there is not enough capital to purchase the original. Material Science Affect normal production and sales.

Sales of clothing increased by 129.32% over the same period last year. It was mainly incorporated into the Shanghai Europe Blue International which was merged into 8-12 in 2017. In December, it was incorporated into the sales of Zhen Qiao fashion, Shenzhen rainbow, Shenzhen Ying CAI and Zhuhai rainbow.

In 2019, *ST Herme plan:

(1) form the online and offline full channel sales network, increase the layout of three or four line city stores. In 2019, the company will continue to increase its offline business and deepen cooperation with other e-commerce platforms to fill the gaps in the coverage of offline outlets.

(2) adjust the brand strategy and expand the number and category of international brands. The company makes full use of the capital market platform, relying on strong sales channels, rich experience in operation and good relationship with the top brands, through the form of joint development with international brands, or the development of deep cross-border cooperation, so as to realize the optimal spanformation of brand and category and channel, get the right to speak and produce and operate in the brand operation, reduce the cost of commodity purchase, and achieve resource integration in the company system, so as to create new profit growth points for the company.

(3) develop new retail formats. Establish multi brand store system, focus on single category, facilitate customer consumption habits on line and online, and occupy a leading position in the field of segmentation. fashion Technology products focus on new customers' needs. At the same time, they change the low frequency buying habits of customers into high-frequency buying actions; mixed operation, increase experiential sales environment; increase flash turnover and temporary stores to raise turnover rate of goods, reduce input costs; vigorously develop comprehensive ole shop and reduce inventory.

(4) create a high quality membership system. The company will create a new membership system to carry existing members and develop new members. Through the new membership system, the company will open up barriers between brands, shopping malls and even categories, and strive to provide consumers with full coverage of goods and services.

(5) vigorously develop cultural tourism projects. At present, he has accumulated a number of cultural tourism projects in the whole country, including: a 550 acre coastal holiday resort in Wenzhou, a 19.86 hectare "vilavilla star sky" project in a town in Hebei, a IP tourism project built in 1300 mu land in Jiangsu Yixing, a 1350 mu land project in Chongqing longevity Lake, and a project built in Wuhan Hanchuan 4000 mu land.

(6) improve supply chain system and reduce operation cost. The company will establish a sourcing center based on China's local strategy, an international sourcing channel, directly face the changes in China's consumer demand and channels, shorten the supply chain time, face the market changes quickly, adjust product mix and series in a timely manner, increase localized production and reduce costs. At the same time, the company will also promote private brands, use China's technology products to combine brand advantages, expand premium space, enhance cost performance, expand customer sources and expand sales volume.

(7) debt problem optimization and resolution. The company plans to discount land and property (including Oriental Science Park real estate, Pingshan land and Huizhou land and factory buildings), so as to repay loans, reduce the company's financial costs, restore normal liquidity, and form debt solutions one by one with creditors, instalment or renew loans according to the actual situation.