Ruyi: From Textile "Intelligence" To Fashion Brand Operation

In the field of high-end clothing, Cerruti 1881, Aquascutum, Gieves, Hawkes, Kent & Curwen are famous for their popularity and reputation. Today, these brands will all be injected into the listed companies, Ruyi group (002193).

On the 6 day, Ruyi group announcements that the company intends to invest in the Yinchuan Weixin Industrial Fund partnership (limited partnership) (hereinafter referred to as the "trust fund") and become its limited priority partner. The Weixin fund indirectly holds the SMCP S.A, a well-known luxury luxury brand operator in France. About 25% of the shares.

Just a few days ago, Ruyi group announced that it intends to purchase the international high-end clothing brand operators such as Gieves & Hawkes, Kent & Curwen, Cerruti 1881 and so on to Beijing Ruyi fashion Klc Holdings Ltd (hereinafter referred to as "Ruyi fashion").

To this end, Ruyi group responsible person told the Economic Herald reporter, "the company's move is to improve the textile and apparel brand industry chain, realize transformation and upgrading, give full play to fabric, clothing high-end intelligent manufacturing and light luxury brand synergy effect, further enhance the company's continued profitability."

Subscribe for 865 million yuan priority share

This time, Ruyi Group intends to use its own funds or self raised funds of 1 billion 99 million yuan to subscribe to the priority share of the trust fund's 865 million yuan, which accounts for 32.03% of the total contribution of the trust fund.

Notice shows that the trust fund mainly engaged in equity investment business, indirectly holding a well-known French luxury luxury brand operator SMCP S.A. About 25% of the shares. At present, the original limited partners are expected to withdraw from the partnership in accordance with the relevant agreement of the partnership agreement, and the company intends to participate in the investment.

Ruyi group, after joining the trust fund, will account for 32.03% of the capital contribution. Yinchuan urban construction Klc Holdings Ltd, Yinchuan Industrial Development Fund Co., Ltd. and Wuhu Ruyi Xin Bo investment partnership (limited partnership) account for 24.99%, 24.99% and 9.26% respectively.

As the main asset of the trust fund, SMCP S.A. Mainly engaged in high-end luxury clothing retail business, owns Sandro, Maje and Claudie Pierlot three brands, its business model combines luxury and fast fashion, its fashion and high quality products from design to production time is short, quick response, the average sales gross margin is about 70%, currently has 1466 retail shops, in more than 40 countries and regions.

Economic Herald reporter noted that in recent years, SMCP S.A. The growth momentum is quite significant, and now ranks fifth in the world's light luxury clothing industry.

In 2016, Shandong Ruyi technology group integrated SMCP S.A. In October 2017, SMCP S.A. Listed on Euronext in Paris. Based on the synergistic effect after integration, SMCP S.A. Over the past 3 years, the compound growth rate has reached 17%. In 2018, its operating income exceeded 1 billion euros for the first time, and its operating profit exceeded 100 million euros. Among them, the Asia Pacific region, especially China, has increased by nearly 50% over the previous year, the fastest growing region in the world.

Upgrading to fashion brands

In June 25th, Ruyi group issued a notice of suspension, saying that in order to improve the textile and garment industry chain, give full play to the brand pulling effect, and build the company into an international light luxury fashion brand operation platform. It intends to purchase the international high-end clothing brand operators such as Gieves & Hawkes, Kent & Curwen, Cerruti 1881, which are popular with consumers.

Economic Herald reporter noted that after the injection of the assets, the business scope of Ruyi group will extend from the traditional wool spinning line, fabric, clothing intelligent manufacturing, to the fashion brand operation and the retail store of intelligent stores, so as to realize the transformation and upgrading from textile intelligence to fashion brand operation.

In July 2nd, Ruyi group further disclosed the progress of the suspension. The company is planning to issue a 100% stake in Jining Ruyi brand Klc Holdings Ltd by issuing shares.

In the view of the leaders of Ruyi group, the company realized the industrial integration and extended the industrial chain after the completion of the non-public offering of shares. Companies need to have well-known clothing brands and terminal sales network to drive the company to develop garment manufacturing business.

"SMCP S.A. With the world's leading design concept, products sold by consumers, online and offline sales network, the company passes SMCP S.A. The terminal retail network can expand the main business and expand the international market share. At the same time, the company has rich R & D resources and international leading textile and intelligent manufacturing capabilities, and can be SMCP S.A. Provide more diversified product supply, and be able to work with SMCP S.A. In the fabric, clothing design and production to achieve the synergy effect of the upstream and downstream industry chain, and further enhance the company's unique advantages in the development of textile fabrics and clothing design. The person in charge told the Economic Herald reporter.