240 Million Wins Global Brand Control Of IRO Brand.

Shenzhen song LSI clothing Limited by Share Ltd (hereinafter referred to as "the song") announced in July 8th, the company intends to 242 million yuan to Shenzhen Qianhai fossing song fashion industry investment fund (limited partnership) (hereinafter referred to as "Fuxing long song"), Shanghai Fosun only real right investment fund partnership (limited partnership) (hereinafter referred to as "Fuxing real") to acquire its 35% stake in Shenzhen Qianhai Shanglin Cci Capital Ltd (hereinafter referred to as "Qianhai Shanglin").

The announcement shows that the company recently signed the "agreement on the transfer of shares and related matters of the Cci Capital Ltd in Shanglin, Shenzhen, Qianhai" with the shareholders of the Shanglin shareholder, Fuxing's long song, respectively. It intends to buy a 25% stake in Qianhai's upper forest in 173 million yuan and acquire a 10% stake in Qianhai's upper forest by 69 million 25 thousand and 300 yuan. After the completion of the acquisition, the company will acquire a 100% stake in Qianhai Shanglin, and Qianhai Shanglin becomes a wholly owned subsidiary of the company in Shenzhen.

It is reported that Shanglin currently owns ADONWORLD57% stake in Qianhai, and ADONWORLD owns IROSAS100% stake. IROSAS and singer are respectively 20% and 80% of eno fashion (Shenzhen) Garments Co., Ltd.

IRO, founded in 2005 by LaurentBitton and ArikBitton brothers in Paris, is a young and fashionable designer brand in French cities. With the concept of "streetgirls&, fashionablewomen" as the design concept, we pursue the simple style of street feelings, including men's and women's clothing, and fashion women's wear products. He owns the IRO brand's global ownership and fully dominates its regional business development in mainland China. In 2018, IROSAS achieved a global operating income of 575 million yuan and a profit of 92 million 344 thousand yuan.

He said that after the completion of the acquisition, he will further strengthen the global control over the IRO brand through the IROSAS57% stake in Shanglin, Qianhai.

Previously reported, in June 28, 2016 and March 6, 2017, the song and song of the trading partner Fuxing song signed the "equity purchase agreement" and its supplementary agreement respectively. According to the agreement, the song is ready to pay for the cash to buy the fossing song, which holds 16% of Qianhai's Shanglin. The two sides agreed that the transaction price of Qianhai's Shangling 16% stake is 79 million yuan. After the completion of the transaction, the company will hold a 65% stake in Qianhai Shanglin and acquire the controlling rights of the former Marine forest. Qianhai Shanglin holds 57% of ADONWORLD, while ADONWORLD owns 100% of IRO. Through this transaction, the listed company indirectly obtains the controlling power of IRO through ADONWORLD. In January 2018, singer and eno fashion signed the "equity purchase agreement" and "exclusive sales agency contract", to buy 1 million 200 thousand euros (about 9 million 262 thousand and 600 yuan, according to the July 8, 2019 foreign exchange price calculation - the first textile net note) to buy its holdings of eno fashion 80% stake. After this acquisition, the company changed from indirect holding to direct holding to eno fashion, and obtained exclusive sales agent rights of IRO brand products in mainland China.

Reporters learned here that IRO company was set up in Paris, France in November 2010, and its shareholders are ELYONE and AEL. IRO is a French designer brand in the field of light luxury. With "streetgirls&fashionablewomen" as its design concept, the French style of simple pursuit of street feelings includes men's and women's wear, and the fashion women's wear products.

IRO is known for its young innovative, skilful and concise French design, mostly using old leather, cashmere, silk and other materials to create a series of street punk style and Paris fashion inspiration design, strong identification. Among them, cool leather jackets, dresses and casual T-shirts are especially popular with celebrities and fashions.

As an international fashion brand, IRO has been developing well in France, France, Spain, Denmark, Korea and many other countries and regions. He owns the IRO brand's global ownership and fully dominates its regional business development in mainland China.

In April 2017, IRO, the first store in mainland China, opened in Shanghai's Hong Kong Plaza. At present, shops are located in high-end shopping centers such as Beijing SKP, Shanghai state gold center, Shenzhen the Mixc, Nanjing De Ji, Wuhan Guoguang and so on, and 13 terminal shops have been opened in mainland China.

Zhang Huai, an analyst at Huatai Securities, thinks that IRO and ELLASSAY are both high-end women's clothing. However, brand positioning is more concise and natural, which is different from ELLASSAY's business positioning. It is an effective complement to the brand matrix. From the point of view, IRO is still in the Chinese market, and is the potential source of future development.

According to the financial reports of the song, IRO contributed 570 million yuan in 2018, up 43.7% compared to the same period last year. As of the end of the reporting period, IRO has 49 outlets.

The reporter learned that in 2018, the company adjusted the IRO business system and took over the domestic operation of the IRO brand through its acquisition of the local brand operator of the mainland of China. On the basis of maintaining the independence of IRO design and operation, the company promotes the expansion of IRO brand in China by giving IRO channels, brand promotion and many other support.

Zhang predicts that in the mainland of China, IRO will speed up the expansion of the channel. It is estimated that the net shops in 2019-21 years will be 10, 10 and 5 respectively, while the same store growth will be 5%, 5% and 5% respectively. Analysis shows that the IRO brand is still growing rapidly. The growth of sales scale will enhance the scale effect and bring about the improvement of gross margin. The gross profit margin is expected to be 66%, 66.5% and 67% in 2019-21 years, respectively.