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    The Company Invested One Hundred Million Yuan To Set Up A Canadian Subsidiary.

    2020/3/7 16:59:00 0

    RMBSubsidiary

    Shenzhen Hui Jie group Limited by Share Ltd (hereinafter referred to as Hui Jie group) announced in March 5th that the group has invested 20 million Canadian dollars (about 103 million 800 thousand yuan) to set up a wholly owned subsidiary, "EASY INTIMATES LTD.", which has completed the registration and overseas investment record in British Columbia, Canada.

    The interface fashion was found on the Canadian Canada Business Registries website. The company was founded in November 15, 2019, and its registered office is located in Vancouver.

    In October 23rd last year, Hui Jie group first disclosed the foreign investment information. The group said it would use its own funds to carry out the outward investment, and the Canadian wholly owned subsidiary would be incorporated into the company's consolidated statement.

    According to information disclosure, the Canadian subsidiary of Hui Jie group has a business scope of "design, development and sales of clothing, shoes, boxes, bags and other related products (whichever is approved by the Canadian subsidiary company)."

    In the past two years, Hui Jie has accelerated the development of the North American market. In mid 2018, Hui Jie group announced that it invested $2 million to set up a wholly owned subsidiary in the United States. The company completed its registration in January 2019 and obtained relevant supporting documents from New York.

    Hui Jie group said that the investment and establishment of a company in Canada aimed at promoting the company's overseas development strategy, "can further promote the exchange and cooperation between the company and the North American market, and speed up the internationalization process of the company."

    However, developing the underwear market in North America is not easy. First, the underwear market in the United States is fiercely competitive. The top five underwear brands occupy at least 70% of the market share. With the rise of diversified women's aesthetic concepts and the rise of the new business model dominated underwear brand in the United States, the underwear market in the United States has intensified its shuffling in recent two years. As a result of declining performance and exports, the secret brand of Vitoria, once a giant of the American underwear market, was forced to sell $1 billion 100 million in February this year to withdraw from the capital market.

    On the other hand, Chinese underwear enterprises need to formulate different production and management strategies according to the needs and preferences of consumers in overseas underwear market. Chinese women and foreign women have different preferences for underwear versions, cups, functions, and aesthetics. This is a brand new challenge for Manifen and other brands who are familiar with China's underwear market.

    Hui Jie group mainly produces and sells underwear, household clothes, swimsuits, skin care products and beauty products. It has eight brands, including Manifen, Yves, Lan Zhuoli, Sang Fulan, Joe Bax, plus one brand, secret weapon and potatoes.

    Among them, the famous underwear brand Manifen is the head brand of the group. By the first half of 2019, the brand income accounted for more than 62%.

    It is noteworthy that since 2019, Hui Jie group has promoted the internal structural reform of its brand subsidiary. At present, its brand plus one Shang pin, Lan Zhuoli, Sang Fulan, secret weapons, Yves and other brands have set up related operation subsidiaries. Hui Jie group said that the move aims to achieve the close ties between the interests of the subsidiary and the interests of the brand division employees in the form of equity.

    Hui Jie group disclosed the financial data of its brands for the first time in the semi annual report of 2019. By the first half of 2019, the top three brands were Manifen, Yves and Lan Zhuoli, which recorded 62.56%, 15.59% and 8.86% respectively.

    Thanks to internal structural adjustment and optimization of channel layout, Hui Jie group achieved double growth in revenue and net profit in 2019. According to Hui Jie group's 2019 performance bulletin, group sales increased by 9.79% to 2 billion 585 million yuan during the reporting period, and net profit attributable to shareholders of listed companies increased by 9.34% to 181 million yuan. In 2018, the net profit of Hui Jie group was 170 million, or 25.5%.

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