China Daily's Performance Increased By 50% Over The Same Period.

Recently, Ruyi group announced its first half results announcement. It is estimated that net profit in the first half of this year is about 43 million 341 thousand and 800 yuan ~5489.96 million yuan, an increase of 50%~90% over the same period last year.


Ruyi group announced in the announcement that during the reporting period, the company continued to focus on development strategy and annual business objectives, and continued to drive the technological innovation as the driving force, implementing the policy of "high-end positioning and quality strategy", adhering to the strategy of big customers, optimizing the layout of the business, adjusting the product structure, and improving the business status and profitability.


Promoting the upgrading of industry by "wisdom"


Statistics show that since its establishment, Ruyi group has been concentrating on the development of the main industry of worsted fabrics, improving its R & D and technological innovation capability, and always adhering to the position of "high added value, high technology content and high quality" to enhance the competitiveness of the international market. Ruyi group's products of many kinds of technology and many kinds of products of worsted fabrics have filled the domestic blank and reached the international advanced level. They are the first choice fabrics for top grade professional clothing and famous brand garments in China, and have been approved by the European Union market for Oeko-Tex Standard100 green label certification.


In addition, as a state-level high-tech enterprise, Ruyi group has the first national R & D center, the national product development base of the wool textile industry, the academician workstation, the post doctoral workstation and other scientific research bases, and has established good industry university research cooperation relationship with the institutions of higher learning and research institutes at home and abroad. In recent years, Ruyi group has won the first prize of national science and technology progress, the national spinning engineering and technology research center, the national industrial design center, and the China Quality Award, marking the Ruyi group's leading enterprise in the Chinese textile and garment industry's technological innovation capability and R & D capability.


With the leading international product development level and technological innovation capability, Ruyi group has established fashion design centers in Italy, the United Kingdom, Japan and South Korea, increasing brand building efforts and extending to the two sides of the "smile curve".


Not long ago, Ruyi group's "Ruyi smart retail strategy", based on the Ruyi manufacturing industry chain with unprecedented intelligent level, has Ruyi hi tech environmental protection functional fabrics that serve a number of international luxury brands, forming more than 30 international brand design and research institutes sharing information, designing an interconnected and interactive Ruyi design innovation system, and backing up the big data system gathered in the process of intelligent development. Through the RFID information code created by Ruyi, we can enjoy exclusive customized clothing care and maintenance system.


It is reported that Ruyi smart retailing strategy, as a revolution of intellectualization of the Ruyi group's intelligent retail terminal, will be led by Ruyi group, and will be implemented jointly with the global distributors and agents of Ruyi holding group's own brand and the international brand of Ruyi's acquisition. Li Lingshen, vice president of China Textile Industry Federation, said: "Ruyi group will give a high degree of affirmation and strong support to the revolution of Chinese clothing brand experience marketing.


It is not difficult to find that in the context of the poor performance of the textile and apparel industry, Ruyi group can still maintain a strong momentum of development, which is closely related to its insisting on high-end positioning and industrial chain synergy. The correct direction of strategy is the key to maintaining steady growth in adversity.


Synergy development of force industry chain


The Ruyi group, which focuses on the textile industry, is not satisfied with the textile manufacturing industry. Over the past two years, Ruyi group has launched into the downstream high-end fashion brand clothing industry, creating high-end fashion apparel industry chain, and achieving industrial synergy. In 2017, Ruyi Group acquired 51% stake in Zhuang Ji fashion, a high-end fashion menswear brand. After two years of integration, a good business synergy between Zhuang Ji apparel and listed companies has been achieved.


In July this year, Ruyi group started the pace of industrial integration again. In July 5th, Ruyi group announced that it would use its own funds or self financing 1 billion 99 million yuan to subscribe to the priority share of the trust fund's 865 million yuan, which accounts for 32.03% of the total contribution of the trust fund. The Weixin fund indirectly holds about 25% of SMCP, a well-known luxury luxury brand operator in France. In July 9th, Ruyi group announced that it intends to purchase the shares of Ruyi Technology (Hongkong) and Ruyi brand of Shandong, through the issuance of shares of Ruyi fashion, China XinDa and Hongkong Jing Da, and control the international high-end fashion brands such as CERRUTI 1881, GIEVES & HAWKES, KENT & CURWEN, D URBAN, Aquascutum and so on by controlling the holding of Li bang and Ya Ge Dan Dan.


Insiders said that after the completion of the transaction, Ruyi group will extend from the wool spinning line, fabric and clothing production to the high value-added fashion brand operation business. From the current leading position of the assets of the Ruyi group in the global fashion field and the quality brand assets, we can see that Ruyi group will become the first stock of A shares.


The industry believes that light luxury belongs to the branch of luxury goods. Compared with traditional luxury goods, light luxury brands retain the high-end quality of luxury goods, while paying more attention to the needs of young people. The design is novel and the price is relatively low, and the target group has a larger scope. According to the Research Report of Bain consulting, in 2016, the global light luxury market amounted to 100 billion euros, accounting for about 40% of the global luxury market. From 2010 to 2015, the global light luxury industry compound growth rate was 9.19%, higher than the overall growth rate of the luxury goods industry. From 2016 to 2020, the growth rate of the global light luxury industry is expected to exceed the average growth rate of 4.6% in the luxury market, showing a steady growth trend.


Along with China's per capita GDP close to $10 thousand, the number of wealthy people grows, the consumption of residents is developing towards high-end and personalized, and the penetration of luxury consumption in China continues to rise, which has also led to the continued growth of luxury consumption. According to the Research Report of Bain consulting, in 2018, the scale of China's luxury goods market reached 170 billion yuan, an increase of 20% over 2017, and continued to maintain rapid growth momentum. According to the estimates of China Everbright Securities Research Institute, China's 2020 young luxury consumption market space is expected to reach 124 billion 200 million yuan, and the development space of light luxury industry is broad.


In this regard, market professionals said that Ruyi group to high-end brand operation transformation, not only the company's asset quality has been greatly improved, the scale of the income of listed companies will also greatly improve. Through the integration of industrial chain, listed companies will also achieve a good synergy effect of industrial chain, which can significantly enhance the overall competitiveness of listed companies and the underlying assets, thereby enhancing the company's profitability and market share. At the same time, after the completion of this transaction, the assets and income scale of listed companies will be significantly improved, and the risk tolerance capability of listed companies will also be further enhanced.