Supply Chain Value: UNIQLO Core Supplier Shanghai Jiale Was Acquired By Kairun

Recently, kairun announced that it plans to purchase 28.70% equity of Shanghai Jiale Co., Ltd., one of UNIQLO's core suppliers, with its own capital of 326 million yuan.

At the same time, Anhui Taihe smart travel equity investment partnership (limited partnership), which is invested by the company as a limited partner, will acquire 10.9% equity of Shanghai Jiale for 124 million yuan.

It is understood that Shanghai Jiale was founded in 1993, mainly engaged in the production and sales of high-end textile leisure fashion and sports series products. In 2006, Shanghai Jiale began to cooperate with UNIQLO, which has been nearly 15 years. It is one of UNIQLO's core textile and garment suppliers.

After the acquisition, kairun will become the largest shareholder of Shanghai Jiale. Experts said that the transaction will promote the product category of kairun's OEM manufacturing business from the luggage field to the textile and garment and fabric manufacturing field with larger market space and better track, which will play a good role in promoting the long-term development of Listed Companies in the future.

According to the financial data, Shanghai Jiale achieved an operating income of 1.3 billion yuan in 2019, a net profit of 100 million yuan, and a net operating cash flow of 110 million yuan; in the first quarter of 2020, it was in a deficit state, with a net profit of - 8.21 million yuan.

By the end of the first quarter of 2020, the total assets and net assets of Shanghai Jiale are 1.085 billion yuan and 636 million yuan respectively. The value of Shanghai Jiale in this acquisition is 1.135 billion yuan, with a premium rate of 78%.