Ruyi Group's Performance In The Report Increased By High-End Brand Industry Chain Synergy Effect

Disclosure of performance forecasts is expected in the first half of this year net profit of about 43 million 341 thousand and 800 yuan -5489.96 million, an increase of 50%-90% over the same period. Ruyi group announced that during the reporting period, the company focused on the development strategy and annual business objectives, continued to drive the technological innovation as the driving force, implemented the policy of "high-end positioning and quality strategy", insisted on the strategy of big customers, optimized the layout of the business, adjusted the product structure, and improved the business status and profitability.

Market analysts pointed out that since 2017, in the context of the overall poor performance of the textile and garment industry, Ruyi group can still maintain a strong momentum of development, and has a close relationship with its high-end positioning and industrial chain synergy. Strategic direction is the key to maintaining steady growth in adversity.

　　 High tech "smart" led by science and technology promotes industrial upgrading

Statistics show that since its establishment, Ruyi group has been concentrating on the development of the main industry of worsted fabrics, improving its R & D and technological innovation capability, and always adhering to the position of "high added value, high technology content and high quality" to enhance the competitiveness of the international market. Ruyi group's products of many kinds of technology and many kinds of products of worsted fabrics have filled the domestic blank and reached the international advanced level. They are the first choice fabrics for top grade professional clothing and famous brand garments in China, and have been approved by the European Union market for Oeko-TexStandard100 green label certification.

As a state-level high-tech enterprise, Ruyi group has the first national R & D center, the national new product development base of wool textile industry, academician workstation, postdoctoral workstation and other scientific research bases, and has established good industry university research cooperation relationship with universities and research institutes at home and abroad. In recent years, Ruyi group has won the first prize of national science and technology progress, the national spinning engineering and technology research center, the national industrial design center, and the China Quality Award, marking the Ruyi group's leading enterprise in the Chinese textile and garment industry's technological innovation capability and R & D capability.

With the leading international product development level and technological innovation capability, Ruyi group has established fashion design centers in Italy, the United Kingdom, Japan and South Korea, increasing brand building efforts and extending to the two sides of the "smile curve".

In May 25th, Ruyi group's "Ruyi intelligent retail strategy", based on the Ruyi manufacturing industry chain with unprecedented intelligent level, has Ruyi hi tech environmental protection functional fabrics that serve many international luxury brands, forming more than 30 international brand design and research institutes sharing information, designing an interconnected and interactive Ruyi design innovation system, and backing up the big data system gathered in the process of intelligent development. Through the RFID information code created by Ruyi, we can enjoy the exclusive custom clothing and washing service system.

It is reported that Ruyi smart retailing strategy, as a revolution of intellectualization of the Ruyi group's intelligent retail terminal, will be led by Ruyi group, and will be implemented jointly with the global distributors and agents of Ruyi holding group's own brand and the international brand of Ruyi's acquisition. Li Lingshen, vice president of China Textile Industry Federation, said: "Ruyi group will give a high degree of affirmation and strong support to the revolution of Chinese clothing brand experience marketing.

　　 High end fashion assets injection to achieve Industrial Synergy

Ruyi group is not satisfied with the textile manufacturing industry. Over the past two years, Ruyi group has launched into the downstream high-end fashion brand clothing industry, creating high-end fashion apparel industry chain, and achieving industrial synergy. In 2017, Ruyi group bought 51% shares of high-end fashion men's clothing brand Zhuang Ji clothing, after two years of integration, Zhuang Ji clothing and listed companies achieved good business synergies.

In July 2019, Ruyi group started the pace of industrial integration again. In the evening of July 5th, Ruyi group announced that it would use its own funds or self raised funds to subscribe for the priority share of 865 million yuan of the trust fund, which accounts for 32.03% of the total contribution of the trust fund to 865 million yuan. The Weixin fund indirectly holds about 25% of SMCP, a well-known luxury luxury brand operator in France. In July 9th, Ruyi group announced that it would purchase the shares of Ruyi Technology (Hongkong) and Ruyi brand of Shandong, through the issuance of shares of Ruyi fashion, China XinDa and Hongkong Jing Da, and control the international high-end fashion brands such as CERRUTI 1881, GIEVES & HAWKES, KENT & CURWEN, D URBAN, Aquascutum by controlling the holding of Li bang and Ya Ge Dan Dan.

After the completion of the transaction, Ruyi group will extend from the wool spinning line, fabric and clothing production to the high value-added fashion brand operation business. With the integration of the leading assets of the underlying assets in the global fashion field and the high-quality brand assets, the Ruyi group will become the first share of A shares.

Compared with traditional luxury goods, luxury brands retain the high-end quality of luxury goods, and pay more attention to the needs of young people. The design is novel and the price is relatively low, and the target group has a larger scope. According to the Research Report of Bain consulting, in 2016, the global light luxury market amounted to 100 billion euros, accounting for about 40% of the global luxury market. From 2010 to 2015, the global light luxury industry compound growth rate was 9.19%, higher than the overall growth rate of the luxury goods industry. From 2016 to 2020, the growth rate of the global light luxury industry is expected to exceed the average growth rate of 4.6% in the luxury jewelry market, showing a steady growth trend.

With China's per capita GDP close to US $10 thousand, the number of wealthy people grows, the consumption of residents is developing towards high-end and personalized, and the penetration of luxury consumption in China continues to rise, stimulating the continuous growth of luxury consumption. According to the Research Report of Bain consulting, in 2018, the scale of China's luxury goods market reached 170 billion yuan, an increase of 20% over 2017, and continued to maintain rapid growth momentum. According to the estimates of China Everbright Securities Research Institute, China's 2020 young luxury consumption market space is expected to reach 124 billion 200 million yuan, and the development space of light luxury industry is broad.

In this regard, market professionals said: Ruyi group to high-end brand operation transformation, not only the company's asset quality has been greatly improved, the scale of the income of listed companies will also greatly improve. Through the integration of industrial chain, listed companies will also achieve a good synergy effect of industrial chain, which can significantly enhance the overall competitiveness of listed companies and the underlying assets, thereby enhancing the company's profitability and market share. At the same time, after the completion of this transaction, the assets and income scale of listed companies will be significantly improved, and the risk tolerance capability of listed companies will also be further enhanced.