Ruyi Group Invested 1 Billion 98 Million To Join The Trust Fund, Which Holds About 25% Of SMCP Shares.

Shandong Ruyi woolen clothing group Limited by Share Ltd (hereinafter referred to as "Ruyi group") announced in the evening of July 5th, that the company is to improve the textile and apparel brand industry chain, realize transformation and upgrading, give full play to the synergy effect of fabric, clothing high-end intelligent manufacturing and light luxury brand upstream and downstream, enhance the company's unique advantages in textile fabric and clothing research and design, actively and steadily merge and integrate and extend development, improve the competitiveness and profitability of the company, and invest to join the trust fund to become its priority limited partner.


Weixin fund is mainly engaged in equity investment business, indirectly holding the French well-known light luxury brand operation enterprise SMCPS.A. (Stock Code: FR0013214145) about 25% of the shares. The total amount of the total contributions paid by the trust fund was 2 billion 701 million yuan, of which the limited partners paid 1 billion 100 million yuan, and the secondary limited partners paid 1 billion 600 million yuan, and the general partners paid 1 million yuan. At present, the original limited partners are expected to withdraw from the partnership in accordance with the relevant agreement of the partnership agreement. Ruyi Group intends to subscribe for the priority share of 865 million yuan with its own capital of 1 billion 98 million yuan, which accounts for 32.03% of the total contribution of the trust fund.


Weixin fund indirectly holds about 25% of SMCPS.A. of French listed companies. SMCPS.A. is mainly engaged in high-end to luxury women's clothing retail business. As a luxury luxury fashion retail enterprise, SMCPS.A. has a high reputation and reputation in the global luxury clothing industry. The group owns three brands, including Sandro, Maje and ClaudiePierlot, with an average sales gross margin of about 70%. Currently, it has 1466 retail outlets and over 40 countries.


In 2016, Shandong Ruyi science and Technology Group Co., Ltd. integrated SMCPS.A., and SMCPS.A was listed in Paris Euronext in October 2017. Based on the synergy effect of Shandong Ruyi Technology Group Co., Ltd., SMCPS.A.'s performance has increased rapidly, and its compound growth rate has reached 17% over the past three years. In 2018, it continued to maintain growth trend, operating income for the first time exceeded 1 billion euros, and operating profit exceeded 100 million euros, of which the Asia Pacific region, especially the Chinese region, grew by nearly 50% compared with the same period last year, the fastest growing region in the world, supporting overall performance growth.


After completing the non-public offering of stock, Ruyi group has realized industrial integration and extended the industrial chain. The company's business scope extends from single worsted fabric to clothing design and manufacture. The company needs to have well-known clothing brand and terminal sales network to drive the company's growing garment manufacturing business. SMCPS.A. has the world's leading design concept, consumer favorite products, and online and offline sales network. Through the SMCPS.A. terminal retail network, the company can expand its main business and expand its international market share. At the same time, the company has abundant R & D resources and the leading international technology textile and intelligent manufacturing capabilities, which can provide more diversified product supply for SMCPS.A., and can achieve synergy effect between the upstream and downstream of the industry chain in terms of fabric, clothing design and production, further enhance the company's unique advantages in textile fabrics and clothing R & D design, narrow the gap between product design and innovation ability and the leading international companies, expand the development space of the company, extend the brand operation of the textile and apparel high profit brand, realize the transformation and upgrading from the textile intelligent manufacturing to the fashion brand operation, and enhance the competitiveness and profitability of the company SMCPS.A..


Ruyi Group believes that the company intends to join the trust fund in line with the company's development orientation, is conducive to broaden the company's business channels, expand the company's market influence, promote the company's sustained and healthy development, and further enhance the company's continued profitability.


Media reports quoted analysts as saying that SMCP is also an outstanding representative of Ruyi holdings. As a representative of France's luxury brand, SMCP has been in the field of fashion in recent years. Since its acquisition in 2016, Ruyi Holdings has implemented a series of integration measures, including improving management incentives, helping them develop the Asia Pacific market and expanding digital channel business. The results of these measures are particularly prominent in the performance: the annual sales volume rose by two digits per year, and the global income rose by 11.5% in the first quarter of 2018, the first time to break through 1 billion euros, which was twice that before the acquisition. The Asia Pacific market sales increased 32.2% to 202 million euros compared with the previous year. This performance mainly benefiting the mainland's fourth quarter sales growth of over 20% over the previous year, and the adjusted EBITDA growth of 11.6% to 171 million 500 thousand euros, with a net profit of 50 million 200 thousand euros and a close to RMB 400 million yuan. In the near future, SMCP has bought the French luxury brand DeFursac, which is SMCP's expansion of men's clothing layout and will have good synergy with SMCP's existing brands. DeFursac sales in 2018 reached 41 million 400 thousand euros, an increase of 5.4% over the same period, the EBITDA profit margin was higher than SMCP, and the SMCP earnings per share would be increased after the acquisition.