YOUNGOR Plans Major Asset Restructuring

YOUNGOR's market rose sharply, and it was trading at once.

Trading in the market opened, as of the afternoon closing, the company's stock price closed at 14 yuan / share, the whole day rose 9.29%, the total turnover of 2 billion 149 million yuan.

On the news side, YOUNGOR announced recently that its joint venture has been confirmed.

The major issues being planned are significant.

Matter.

It is reported that YOUNGOR is the hemp industry.

As of February 27, 2015, 78 million 454 thousand and 600 shares of hemp industry were held, with a shareholding ratio of 30.08%.

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The purchase of "Ordifen" by "urban beauty" does not mean to integrate the industry, although the concentration of domestic underwear industry is very low.

A careful study of the acquisition agreement reveals that the assets acquired include cash, accounts receivable, prepaid accounts, raw materials, finished products and semi-finished products under the current assets of Shanghai Ordifen, production facilities, R & D facilities and shop equipment under fixed assets, intellectual property rights related to the business (including but not limited to trademarks) in intangible assets, contracts and arrangements related to Ordifen shops in Shanghai (including self run stores and franchisees), contracts related to the business, and any other assets that are necessary for the continuing operation of the business.

It is not hard to find that Ordifen has relatively low market share, high brand awareness, relatively mature high-end market sales channels and complete R & D design capability compared with urban beauty.

According to frost Sullivan, in terms of retail sales of bra and women's underwear, Ordifen ranked fifth and seven respectively in China in 2014; and by December 31, 2014, Shanghai's Ordifen had about 614 retail outlets, including about 250 self run shops and about 364 franchisees.

From the perspective of channel layout, these stores are mainly concentrated in department stores, shopping malls and other large shopping centers in the first tier and second tier cities in China, while the "urban beauty" has been targeted at mass consumption in the target consumer group. Therefore, the "Ordifen" current market and urban beauty are not high coincidence, because this is conducive to "urban beauty" to expand different customer groups.

It can be expected that after the incorporation of "city beauty", "Ordifen" can greatly reduce the purchasing cost by relying on the advantage of "urban beauty" in the upstream supply chain, and at the same time, it can learn from the successful experience of "urban beauty" in the downstream channels in the past few years, and increase sales and profit margins.

In addition, we notice that the urban beauty has provided a 105 million yuan entrusted loan to Ordifen in addition to the payment of the purchase, which is obviously a "blood pfusion" for the Ordifen brand's future operation.

For urban beauty, whether the acquisition of Ordifen will open the curtain of its industrial mergers and acquisitions, this speculation still lacks support. But it is certain that the beauty of the city has clearly recognized its advantages in the industry, and has begun to graft its advantages and competitors' advantages by means of capital strength, that is to say, the strategy of "urban beauty" has no obstacles in the extension strategy.