Jiumuwang Investment Handu Clothes House

Jiumuwang announced yesterday evening that Shanghai Jinglin Jiusheng Xinlian Equity Investment Center (Limited Partnership) (hereinafter referred to as “Jiusheng Xinlian”) initiated by the company’s subsidiary was established on July 31st with Shandong Handu Yishe E-commerce Group Co., Ltd. (The “Handu clothes house”) has signed an agreement, and Jiusheng Xinlian intends to subscribe for 5.9994% of the registered capital after the capital increase of Handu clothing house with US$12 million or equivalent.

It is reported that in order to effectively promote the investment in apparel-related industries, Jiusheng Investment, a wholly-owned subsidiary of Jiumu Wang, initiated the establishment of Jiushengxinlian with Shanghai Jinghui Investment Management Center (Limited Partnership) to invest in Internet lifestyle projects.

Shandong Handu Yishe E-commerce Group Co., Ltd. is a pure internet e-commerce brand. At present, Handu Clothes House has 19 brands, divided into Hanfeng, Dongfeng, and European and American styles. It covers women's, men's, children's wear, outdoor, and middle-aged clothing styles. It can wear more than 20,000 garments each year. The company has more than 50 business units and has branches in Korea and Beijing.

The list of shareholders showed that the actor Li Bingbing, Huang Xiaoming and Ren Quan respectively held 0.676%, 0.676% and 0.4916% of the shares in Handu. In 2014, Handu’s clothing business realized an operating income of 831 million yuan and a net profit of -36.071 million yuan. From January to May 2015, it achieved an operating income of 497 million yuan and a net profit of 24,854,500 yuan.

On July 20, 2015, Jiusheng Investment, a wholly-owned subsidiary of Jiumu Wang, invested in a joint venture company, Jinan Jiuhan International E-Commerce Co., Ltd., to create and sell a series of business casual men's products. The registered capital of the joint venture company is 10 million yuan, and the shareholding ratio of Jiusheng Investment is 50.1%.

According to industry insiders, Jiumu Wang is one of the leading brands of domestic men's business casual wear. Despite some adjustments in the weak market, the company's style is steady and the overall development quality is well controlled. This year, it is expected that the bottom line will reach a slight recovery. The company's cooperation with Handu clothing will help accelerate the company's transitional pace and increase the company's success rate in transforming the fashion industry group.