Hai Lan's Home, Women's Wear Business Lost 382 Million Yuan To Mai Cheng

In the ninth years since the founding of the women's clothing brand, "Hai Ju rabbit", Hai Lan has decided to "get together better."
In the evening of September 16th, Hai Lan home (600398) announced that the company's wholly owned company, Hai Lan Home Brand Management Co., Ltd. intends to transfer its 100% stake in Jiangyin AI Ju rabbit Garments Co., Ltd. (hereinafter referred to as "Ai Ju rabbit"), with a total transfer price of 382 million yuan.
The announcement shows that after the completion of the equity transfer, Harean investment, a subsidiary of the company, owns 19% of the AI rabbit, and the company no longer controls AI rabbit.
Public information shows that the women's clothing brand AI Ju rabbit was founded in 2010, and its number of stores has been expanding rapidly since 2015. According to past earnings data, in 2015, the number of stores in AI lived 306, increased to 630 in 2016, increased to 1050 in 2017, and slowed down to 1281 in 2018, while 1241 in the first half of 2019. At the same time, AI's revenue increased from 305 million in 2015 to 1 billion 98 million in 2018.
The transfer of all shares at a price of 382 million yuan is expected to yield an investment income of 56 million yuan.
In the evening of September 16th, Hai Lan home announced that the wholly owned subsidiary of Hai Lan Home Brand Management Co., Ltd. (hereinafter referred to as "quality control company") signed a share transfer agreement with the director Zhao Fangwei, the Jiangyin partnership business management partnership (limited partnership) (hereinafter referred to as "win win management") and the wholly owned subsidiary of Jiangyin Hai Lan Home Investment Co., Ltd. (hereinafter referred to as "Hai Lan investment"). The quality control company intends to transfer its 100% stake in Jiangyin AI Ju rabbit Garments Co., Ltd. (hereinafter referred to as "Ai Ju rabbit"), and the total transfer price of the target shares is 382 million yuan.
According to the agreement, the quality control company intends to transfer the 66% stake of AI Ju rabbit to Zhao Fangwei, transferring the price to 252 million yuan, transferring the 15% share of AI Ju rabbit to the joint management, transferring the price to 57 million 364 thousand and 900 yuan, and transferring the 19% share of AI Ju rabbit to Hai Lan investment, the transfer price is 72 million 662 thousand and 200 yuan.
Hai Lan's home said in the announcement that after the completion of the transaction, it is expected to bring a non recurrent investment income of 56 million yuan to the company.
Subsequently, Hai Lan's home again announced that it had received a written resignation from the director Zhao Fangwei. According to the 2018 earnings report, Zhao Fangwei, executive director and general manager of Jiangyin AI Ju rabbit Garments Co., Ltd., Shanghai AI Ju rabbit Supply Chain Management Co., Ltd. and Hai Lan home director.
The company said Zhao Fangwei had resigned to the board of directors for resignation from the seventh board of directors of the company due to changes in his work. His resignation would not result in a lower than the statutory minimum number of board members of the board, and would not affect the normal operation of the board of directors.
The expansion of AI rabbit stores has led to revenue growth, and single store revenue has declined year by year.
AI Ju rabbit was once one of the three main brands of Hai Lan's home. Public information shows that the brand is positioned as a popular fashion women's clothing brand. It was founded in 2010. Its customers are 20-39 year old female customers. Their products mainly include down garments, knitted sweaters, dresses and so on.
Since the beginning of 2015, the number of AI rabbit has begun to "soar", which has led to the development of revenue. According to past earnings data, in 2015, the number of stores in AI lived 306, increased to 630 in 2016, and soared to 1050 in 2017, while the growth rate of stores in 2018 slowed to 1281. At the same time, AI's revenue increased from 305 million in 2015 to 1 billion 98 million in 2018.
In fact, the average operating income of "Ai Ju rabbit" is decreasing year by year. Data show that the average single store business income of the brand was 1 million 306 thousand and 300 yuan in 2016, and 1 million 188 thousand and 500 yuan in 2017, while the average single store revenue in 2018 was only 856 thousand and 900 yuan.
Haolan's home financial report shows that the gross profit margin of "Ai Ju rabbit" in 2018 was 23.93%, down 3.86 percentage points from the same period last year. Over the same period, Haolan house's other two brands, haolangjia brand, had a gross margin of 43.40%, and San Keno had a gross margin of 49.25%, and AI's gross profit margin was only half that of the two brands mentioned above.
However, Hai Lan's home has "entrusted heavy responsibilities" to AI Ju rabbit. In July 2018, Hai Lan's home issued 3 billion yuan of Switching Company bonds, of which 470 million was used for the construction of AI Ju rabbit R & D building, and 1 billion 100 million yuan for the construction of AI Ju rabbit warehouse. In January 21, 2019, the company could enter the stock transfer period of Switching Company bonds.
According to the company's plan, AI Ju rabbit will be a major force in the growth of Future Ltd: in 2018, the company plans to increase its total number by 300. It is estimated that the number of stores in 2020 will reach 2000, and the number of stores will double by the end of 2017. The main business revenue will reach 2 billion 250 million yuan, reaching 2.5 times that of 2017.
However, the first half of 2019 showed that as of June 30, 2019, there were 1241 stores in AI rabbit. The announcement shows that as of August 31, 2019, the total assets of AI lived 1 billion 30 million yuan, and the operating income from January 2019 to August was 1 billion 148 million yuan and the net profit was -2536.38 million yuan.
In the latest announcement, Hai Lan House said that after the completion of the transaction, the company intends to change the actual use of the main part of the project to raise funds for AI rabbit, and to raise the fund permanently.