Luo Meng "Cut His Wrist" To Save Clothing Industry

Recently, Yintai business announced that its Affiliated Companies Zhejiang Yintai had recently concluded an asset pfer agreement with Ningbo's globe.

Zhejiang Yintai bought the 5 storey shopping center and parking building in Ningbo's globe, with a paction volume of about 1 billion 37 million yuan.

In the announcement of the same day, another interesting message was: Zhejiang Yintai also entered into a loan agreement with the Associated company's Luo Meng Garment in Ningbo, and loaned 170 million yuan of interest free loans to them, and agreed to extend the underground right to use for 10 years during the loan period.

In the past 10 years, the same place

Although YOUNGOR and Shanshan enterprises are also diversifying, they are still innovating in the field of clothing. While Luo Meng has entered the diversified industries such as real estate, his clothing industry has not been much improved.

Data show that the revenue of the group was 6 billion 500 million yuan in 2012 and 422 million yuan in net profit, and 6 billion 880 million yuan in 2013 and 427 million yuan in net profit.

Luo Meng relevant media told the media that at present, the main business of Luo Meng group's professional clothing, e-commerce and retail business is developing better overall, of which the growth of professional clothing is obvious.

Related personages indicated that this Luo Meng shopping center and Yintai "hand in hand" cooperation, stems from the project itself huge development potential.

Luo Meng and Yintai reached a strategic cooperation, the greater integration of resources, enhance the comprehensive competitiveness of the global city, is conducive to better development.

Statistics show that the total investment of the global project was 10 billion yuan, which was launched in 2013 with a total construction area of 1 million 100 thousand square meters.

It is divided into 5 core blocks: Luo Meng World Park, Luo Meng shopping center and commercial street.

However, this year, rumours about the capital chain breakage, the global city being sold, and the universal city changed hands were rumoured in the bookshops, and even more rumours of Sheng Jingsheng's running away.

According to the company insiders, there is indeed tension in the capital chain, and some of the projects under construction will be changed.

Sheng Wubin, President of Luo Meng group, said that due to the recent downturn in the real estate industry, real estate developers have financial pressure is very common.

And this choice and Yintai cooperation, mainly because of the importance of Yintai business operation experience and resources, but very simple business behavior.

In addition, media reports reported that the commercial items sold by Luo Meng were 4524 yuan per square meter.

At present, prices, labor costs are rising, developers Jianan, taxes, financial costs together, basically more than 5000 yuan / square meter, and now sold at less than cost, can be regarded as "cheap sale".

In this regard, Luo Meng insider said that in order to sell this part of the assets, Luo Meng talked about a lot, the price has dropped from about 2000000000 yuan to 1 billion yuan.

Luo Meng did not own funds from the beginning of the project. Most of them were derived from loans. Therefore, the main purpose is to return the funds, and the project is still profitable.

Worth

In addition to the tight funds, the main garment industry is still in the stage of pformation.

In 2010, Luo Meng said that he entered the "two take-off" stage, and put forward the goal and concept of "the first brand of Chinese popular fashion", which was intended to be pformed into "Luo Meng's fast fashion" mode.

At the same time, Luo Meng invited Zai Sai International Fashion Management Agency to enter and set up a cargo control team to carry out "supply chain innovation".

But from now on, there are some "thunder and heavy rain" in pformation.

Since then, although Roman clothing still has good performance in professional clothing, but the pressure of inventory pressure has not brought a lot of capital back, and therefore, Luo Meng group has chosen to break arm to survive, and continue to increase investment in clothing industry.