Hai Lan Home 380 Million Sells Brand AI Ju Rabbit 1 Billion 400 Million Fund-Raising Supplementary Liquidity

In September 17th, the home of Hai Lan (demand area: 150-250 square meters, 262 shopping centers and 300 planned for this year) Limited by Share Ltd (hereinafter referred to as "Hai Lan home") issued a notice on the transfer of subsidiaries' equity and related transactions.

The announcement shows that Hai Lan home's Brand Management Co., Ltd. (hereinafter referred to as "quality control company"), a wholly owned subsidiary of Hai Lan's home, is going to sign the agreement on equity transfer of Jiangyin AI Ju rabbit Garments Co., Ltd., with Zhao Fangwei, Jiangyin business partnership (limited partnership) (hereinafter referred to as "partnership management") and the wholly owned subsidiary of the company, Jiangyin Hai Lan Home Investment Co., Ltd. (hereinafter referred to as "Hai Lan investment").

The quality control company will assign 66% stake, 15% stake and 19% equity to Zhao Fangwei, the joint venture management and Hai Lan investment. The transfer price is 252 million 405 thousand and 700 yuan, 57 million 364 thousand and 900 yuan and 72 million 662 thousand and 200 yuan respectively. The transaction is expected to bring a non recurrent recurrent investment income of 56 million yuan to the listed company, and the funds will be used for the daily operation of the company, which will further reduce the company's operating costs and improve the efficiency of asset operation.

After the completion of this transaction, AI Ju rabbit was changed from a wholly owned subsidiary of Hai Lan home to a share holding company. The company indirectly held 19% of its equity. AI Ju rabbit would no longer be included in the company's consolidated statement, but it would become the related party in the next 12 months.

Hai Lan's home said that since its establishment, the brand of AI rabbit has been adjusted for many times, and its overall business performance has not reached the expected level. Based on the judgement of the current market and future development of the popular women's clothing market in China, the company believes that adjusting the equity ratio of the AI rabbit can transfer the controlling shares to the core manager and management team of the brand, which can reduce the operating costs and operational risks of the company, reduce the inefficient input of resources, and concentrate resources on new brands with better development momentum.

It is understood that AI Ju rabbit business income in 2018 was 1 billion 697 million 927 thousand and 100 yuan, net profit of 327 million 495 thousand and 800 yuan, but in 2019, its performance suddenly "changed face", 1-8 months of business income of 1 billion 147 million 641 thousand and 500 yuan, net profit of -2536.38 million. It is not difficult to guess that the performance of AI rabbit has dropped sharply, or the main reason for its being stripped by the sea LAN family.

AI Ju rabbit is the brand of women's clothing set up by Hai Lan's home in January 28, 2010. It's positioning sports, leisure and fashion. It is one of the three main brands of Hai Lan's family. It has been placed high hopes by Hai Lan's home.

In February 6, 2018, Hai Lan's home announced that it would raise funds of 3 billion yuan, of which nearly 430 million yuan was used to build the R & D office building of AI Ju rabbit. The total area of the new building is 104 thousand and 600. It will be used as the R & D Office base of the brand and some new brands. 2 billion 114 million yuan will be used for the construction of the logistics park -- 9 new warehouses, 4 of which are used for the love rabbit business, and the investment amount will be 968 million yuan. That is to say, the investment of Hai Lan's family is about 1 billion 400 million yuan.

However, with the sale of AI residential rabbit in Hai Lan's home, the purpose of raising funds for the above investment projects has also changed.

Hai Lan's home said in another announcement that as at August 31, 2019, the construction project of AI Ju rabbit's R & D office building and the AI house rabbit warehouse project had not yet been put into fund-raising, and the company intends to raise the total amount of raised funds raised by the above investment projects to 1 billion 434 million yuan for long-term replenish of working capital.

In other words, according to the planning of Hai Lan home, by 2020, the number of AI rabbit stores will increase to 2000. However, as of the end of June 2019, the number of all the stores in AI Ju rabbit is only 1241.