Shandong Private Enterprises Ruyi Technology To Buy Billions Of Billions Of Billions Of Billions Of Billions Of Dollars In State-Owned Assets

Deng Lun's luxury brand BALLY; Yang Mi, Bea Hayden, Dongyu Zhou and so on a popular French luxury brand Sandro; the brand Maje that Gianna Jun once wore to the press conference; former British Prime Minister Thatcher's "favorite" old British windbreaker brand: A series of famous overseas brands, after a round of mergers and acquisitions, are now under the command of a private enterprise in Shandong.
Over the past few years, Shandong Ruyi Technology Group Co., Ltd. (hereinafter referred to as "Ruyi technology") has become an important player in the field of light luxury. It is called "China Version LVMH" (LVMH full name Louis Vuitton Mot Hennessy, is a world-famous large luxury group).
After the merger, Ruyi technology assets increased significantly. According to public data, the sales revenue of Ruyi technology has increased from 200 million yuan in 1998 to 50 billion yuan in 2016, and 260 times in 20 years. In 2018, its total assets amounted to nearly 70 billion yuan.
After intensive mergers and acquisitions, it also brings financial pressure. As of June 30, 2019, Ruyi technology has a total debt of 38 billion 454 million yuan.
In October 18th, Ruyi technology announced that the controlling shareholder Beijing Ruyi fashion Klc Holdings Ltd transferred the 26% stake to Jining City Construction Investment Company Limited (hereinafter referred to as "Jining city investment") with a price of 3 billion 500 million yuan, and Jining city voted to become the second largest shareholder of Ruyi technology.
In October 25th, SMCP independent director, Yang Dayun, President of Yi Yi International, told the times weekly reporter that in fact, Ruyi technology has realized the debt problem. Since this year, the debt reduction rate has been taken as the main strategic objective of the group, but it will take at least a few years for the enterprises that have just completed the acquisition and integration.
In fact, SMCP France light luxury group was purchased by majority of the 1 billion 300 million stake in Ruyi technology in 2016, and owns many fashion brands such as Sandro, Maje, Claudie Pierlot and so on.
Yang Dayun told the times weekly reporter that Ruyi technology chooses light extravagance purchase path is a precise investment, but in the future business process, it is necessary to increase post investment management and achieve rapid profit.
In October 25th, according to the issue of how to solve huge debts in the future and the management strategy of M & A brands, the times weekly reporter interviewed several times about interview with Ruyi technology, but no reply was received as of press release.
State owned emergency stake
As mentioned above, Jining city invested 3 billion 500 million yuan to get 26% stake in Ruyi technology.
At the same time, Jining city investment also provided irrevocable joint and several liability guarantee for the "15 voluntary debt" issued by Ruyi technology.
According to the announcement of Ruyi science and technology announcements, the "15 Ruyi debt" scale continued to be 1 billion 903 million yuan, with a term of 3+1+1 years, expiring in October 23, 2020, but in October 23rd this year, investors returned to the sale.
For the "15 Ruyi" debt sale and interest payment day in October 23rd, state assets "emergency" stake in Ruyi technology, there are many points of view that this is actually a local financing platform for the enterprise blood transfusion, is the "Ming stocks real debt" financing.
In October 23rd, the latest announcement of Ruyi science and technology shows that the "15 Ruyi debt" has a total sales of 309 million yuan.
Ruyi technology responsible person in an interview with the media, bluntly: "this year, Ruyi technology has been troubled by the double tightening of credit market and bond market. In the first half of this year, some financial institutions increased the intensity of loans to private enterprises, and repay loans of billions of dollars, which did not get continued loans, resulting in a tight operating capital chain.
Ruyi technology company bond 2019 semi annual report shows that as of June 30, 2019, Ruyi technology short-term loans 6 billion 7 million yuan, long-term loans 5 billion 331 million yuan, payable bonds 9 billion 649 million yuan, the current year's non current liabilities 4 billion 130 million yuan.
As of June 30, 2019, Ruyi technology has a total debt of 38 billion 454 million yuan.
According to the weekly weekly reporter combing, it is found that the debt and short-term loans within a year will reach tens of billions of yuan. It includes 4 billion 130 million yuan of non current liabilities due within one year, and 345 million yuan (RMB 2 billion 437 million yuan) offshore bonds and 6 billion 7 million yuan short-term loans due in December 2019. But the money on the account is about 8 billion 887 million yuan, of which the restricted part is about 4 billion 690 million yuan.
In order to ease financial pressure, Ruyi technology has also made preparations. At the end of the first quarter, 100% of the assets of the A share holding company listed on the 002193.SZ share of 23.12% were mortgaged. At the same time, we will speed up asset liquidation and capital operation, including the listing of lycra and the listing of Singapore's housing stock.
Nowadays, the stake in state-owned assets is indeed a great urgency for Ruyi technology.
"Getting support from state assets is not a permanent solution," said Yi. "In the future operation of the technology, we need to increase post investment management, so as to enable loss making enterprises to stop quickly, and achieve quick profits by attracting talents and changing tactics." Yang Dayun told the times weekly reporter.
　　 Mergers and acquisitions "radical"
Most of the short-term debt comes from mergers and acquisitions.
Ruyi technology formerly known as Shandong Jining wool textile factory, after restructuring, developed into Shandong's old private enterprises and technology textile manufacturing enterprises.
Its "soul" is Qiu Yafu, chairman of Ruyi technology. Public reports showed that when he was 17 years old, Qiu Yafu entered the Jining wool textile mill and became an ordinary worker. In 1977, Qiu Yafu, 19, became the workshop director of Jining wool spinning mill. Since then, he has been tied up with the "Ruyi" brand.
Under the capital operation, Qiu Yafu became the controlling shareholder and the actual controller of Ruyi technology in 2009. After that, Qiu Yafu began a series of mergers and acquisitions, and reached its peak in recent years.
According to incomplete statistics, in the past four years, the "Ruyi" has spent about 36 billion 300 million yuan for mergers and acquisitions.
In 2016, Ruyi technology invested 1 billion 300 million euros to become the controlling shareholder of the French light luxury group SMCP; in 2017, it bought the British windbreaker brand yagishi for 117 million dollars, and won the high-end men's clothing brand Hongkong Li Bang holdings in 2 billion 200 million Hong Kong dollars; in 2018, according to the external estimates, Qiu YV passed the vogue fashion for about 700 million dollars to acquire the Swiss luxury brand Bally; at the beginning of 2019, it bought 2 billion 600 million of US's apparel and advanced fabric business, including Lycra LYCRA brand.
From the acquisition path, we can see that its main target brands are light luxury brands, new garment manufacturers and advanced fabric producers.
Light extravagance is a growth point, because in the past ten years, light luxury goods are constantly eating away from the luxury market. The luxury market is becoming younger, and young people are becoming the mainstream consumers of luxury goods. The entry price, quick change and image of light luxury products are more popular among young people. Yang Dayun told the times weekly reporter.
At present, Ruyi technology has ranked among the world's 100 largest luxury Brand Company list in 2018, ranking eleventh in the fashion apparel luxury brand list, the top 5 in the global luxury brand.
In October 27th, Cheng Weixiong, a textile and clothing brand management expert, told the times weekly reporter that if only the merger and acquisition of international brands were undertaken without considering the integration and operation of these brands, the financial pressure of Ruyi technology will increase year by year.
There are risks behind opportunities.
For example, the men's clothing brand Li bang and fiber technology company Lycra group, which are purchased by Ruyi technology, are the main factors that drag their performance.
Ruyi technology has done a lot of work to help Li Bang's men's wear and tear. In the 20152017 year, shareholders of Lebang men's shares accounted for a loss of HK $89 million, HK $442 million and HK $608 million respectively. In 2017, the business restructuring plan was launched after the acquisition of Ruyi. In the first half of 2019, the profit attributable to shareholders was HK $77 million.
Yang said that in the past two years, the men's wear market, especially the formal market, has been shrinking globally. Ruyi technology has caught up with the trend downturn. The acquisition of Lycra has increased the cost and risk of mergers and acquisitions because of factors such as trade disputes.
"But whether it is the strategy of acquiring technology by Leyi or Leica, it is all right, on the one hand, it is conducive to the layout of the men's clothing market, and on the other hand, it is conducive to the layout of the fiber technology industry." Yang Dayun told the times weekly reporter.
Cheng Weixiong believes that, from the case of the past merger of brand, the merger brand still operates alone. The lack of complementarity among brands, including culture, organization, global supply chain, design research and development, market operation complementarity, is still far away.