On October 20, 2017, Yinchuan Industrial Fund Management Co., Ltd. (referred to as Yinchuan Industrial Fund Co., Ltd. and Shandong Ruyi's acquisition of the French fashion group SMCP successfully landed on the Paris Euronext. The listing of the SMCP was the first appearance of Shandong Ruyi in the European capital market. The first day of the bookkeeping document, the full amount of orders was obtained, creating the gold standard phenomenon of IPO. As of the pricing benchmark date on October 19, it was oversubscribed by international investors several times, setting a record for the scale of the industry IPO in the same period, raising funds near 5 billion yuan, of which the existing shareholders sold shares to buy 496 million euros (equivalent to 3.9 billion yuan), which has attracted high recognition and enthusiasm in the global capital market. The stock issuance is priced at 22 euros per share, and the corresponding corporate valuation exceeds 20 After the completion of the listing, Shandong Ruyi and Yinchuan will still hold more than 55% of the controlling interest of SMCP, and the investment income of Yinchuan Industrial Fund's overseas M&A project is expected to exceed 100%.
Industry leads innovation and drives leapfrog development
As the core area of ​​the inland open experimental zone, Yinchuan is an important node city of the “Belt and Road†and a bridgehead open to the west. In recent years, the tide of financial reform has surged, and financial innovation has flourished. With the implementation of the “Financial Strong City†strategy of Yinchuan City, a financial revolution was born in Yinchuan. New business layouts such as big data, Internet of Things, and smart cities, such as the Ruyi Science and Technology Industrial City and the World E-sports Contest, the financial and financial linkage innovation, and the investment and financing operations have intensified, highlighting the innovation vitality of this western city.
As an important part of Yinchuan's “financial strong city†and financial innovation development strategy, Yinchuan Industrial Fund Company emerged as the vanguard of financial reform and innovation, and demonstrated the vitality of the new state-owned industrial fund platform. Since the establishment of Yinchuan Industrial Fund Co., Ltd., with the mission of “integrating and building traditional industrial clusters and cultivating and expanding emerging industriesâ€, we have actively built a “strategic investment + financial investment†and a balanced investment model to create a continuously growing portfolio of investment funds. New financial instruments such as fund management, equity investment, mergers and acquisitions, etc., establish an investment and financing system that serves the diversification of Yinchuan's industrial development and covers all stages of corporate growth.
In the past three years, Yinchuan Industrial Fund Company has promoted development with innovation, explored new paths in development, fully utilized the guiding function of financial funds, grafted strategic investors, and promoted financial capital and social capital to invest in regional characteristic industries to create a full industrial chain; The industrial fund enlargement function will increase the investment and financing operations, support large-scale key enterprises and leading enterprises in Yinchuan City, and actively cultivate new industries and new business forms to help Yinchuan City create a new engine for economic growth. Up to now, Yinchuan Industrial Fund Co., Ltd. has cooperated with well-known investment institutions at home and abroad, and has established and managed 25 investment funds of various types. The total scale of managed funds is 42.4 billion yuan, attracting more than 359 billion yuan of social capital, involving industries and fields including new energy. Agriculture, high-end equipment manufacturing, textiles, strategic emerging industries, navigation, culture, gaming e-sports, health and leisure, and so on, have effectively boosted the healthy and rapid development of Yinchuan's economy and society.
Industry and finance combined with manufacturers to create industrial clusters
Innovation and development is an eternal theme. In the practice of capital operation, Yinchuan Industrial Fund Company changes its concept, takes the market as the orientation, gives full play to the advantages of government resources and industrial clusters, creates business opportunities, explores the mode of integration of industry and finance and attracts investment, and forms resources across time and space. The deployment, especially the way of deploying future resources, has attracted more than 30 billion yuan of social capital from domestic and foreign investment institutions and financial institutions to invest in the economic construction of Yinchuan City. Through capital operation, strengthen regional advantages, and start to build a smart textile industry cluster. State-owned investment and financing platform, expand open vision, layout emerging industries (e-sports games, smart cities, bio-medical), guide social capital participation and follow-up, and truly achieve the integration of finance and industry.
Shandong Ruyi has long faced unfavorable conditions such as rising domestic costs, slowing down of export sales, and weak domestic demand. Although the level of fabric research and development and processing technology are comparable to those of international high-end products, the international competitiveness of enterprises has gradually declined due to the lack of well-known international brands in end products. . It is imminent for the comprehensive layout to get out of the predicament and seek a new development path. The development of Shandong Ruyi is in line with the development strategy of Yinchuan Industrial Fund Company and has a common entry point. In accordance with the decision-making arrangements of the municipal party committee and the municipal government, and giving full play to the ability of resource integration, Yinchuan Industrial Fund Company took the lead in Shandong Ruyi and Yinchuan Tonglian Capital to take advantage of the advantages of Yinchuan to seize the favorable opportunity of upgrading traditional industries and lengthen the industrial chain. Advantageous industrial clusters. A total of 5 billion yuan was invested by Shandong Ruyi, Yinchuan Tonglian Capital and Yinchuan Industrial Fund Co., Ltd. (Yinchuan Industrial Fund invested 1 billion yuan), attracting 110 billion yuan of priority funds from financial institutions, and establishing 16 billion yuan of "Ruyi Technology Industrial City Investment Fund" The project of Shandong Ruyi in Yinchuan has been expanded from the initial 30 million shirts and 3 million suits to an annual output of 120,000 tons of differentiated spandex, 100 million meters of high-grade Shirt fabric, 10 million pairs of socks, 2 million pieces of casual wear, Seven items, including 1 million knitwear, create a smart industrial chain from one yarn to one garment, realizing private order and flexible production. Its industrial chain extends from spinning to fabric, clothing and brand. After the completion of the above projects, the annual output value will be 20 billion yuan.
Speaking of this, Tian Youqiang, chairman and general manager of Yinchuan Industrial Fund Co., Ltd. said: The Shandong Ruyi project we support is a model of integration of industry and finance, and attracting investment. In the future, we will continue to upgrade the model of “inviting investment†and undertake High-end industries and emerging industries at home and abroad will be launched in Yinchuan to realize the upgrading and iteration of Yinchuan traditional industries, and then promote the transformation of Yinchuan's industrial structure. Although Shandong Ruyi has a good business foundation, from the perspective of the value distribution pattern of the industrial chain, the added value of products is too low. From another perspective, due to its strong strength in the textile industry, there is the possibility of extending downstream, and there are many successes in the world. The precedent. Ruyi Group has been trying to extend to downstream industries for many years, and it takes decades to build a luxury brand. The high-profit area that goes to the global industrial chain is an inevitable choice for Shandong Ruyi. Therefore, through the cross-border mergers and acquisitions, joint ventures and other means, opening up the entire industrial chain from product manufacturing to brand operation is the right path for the sustainable development of the traditional textile industry.
The whole industry chain + brand promotes the internationalization of enterprises
With the industrial cluster, the upstream and downstream industry chains form mutual support, and the creation of the Ruyi brand has become the first concern of Yinchuan Industrial Fund Company after investing in the project. Tian Youqiang said that only the whole industry chain + brand can expand the influence of enterprise products and enhance the competitive advantage of enterprises.
In 2015, SMCP's actual controlling shareholder, global private equity giant KKR, tendered for the global market. Morgan Stanley, the world's top investment bank, recommended the SMCP project to Shandong Ruyi. For the sake of its own strategic development, Yinchuan Industrial Fund Co., Ltd., together with Ruyi Group, China Aviation Trust and Yinchuan Tonglian Capital, formed a M&A fund to participate in the bidding and successfully reached an acquisition agreement. There are risks in investing in mergers and acquisitions. Whether a project is worth investing should be considered in many aspects. SMCP is such a high value-added brand. In the overall decline of the international luxury market, SMCP still has stable sales performance with its unique advantages of luxury and fast fashion. In 2016, the overall revenue increased by 16.4%, and the net sales in the market outside France also increased by 24.07% compared with 2015. In Europe, North America and Asia (especially in China), the double-digit growth rate. Tian Youqiang said that it is not difficult to see from the performance of SMCP that this company is in the rising stage of the international luxury market. The luxury market currently has a global market size of about 96 billion euros in the field of clothing and accessories, and its scale is still expanding.
In October 2016, Yinchuan Industrial Fund Company helped Shandong Ruyi Group to complete the acquisition of the controlling stake in SMCP. Yinchuan Industrial Fund Co., Ltd., a listed company, a state-owned investment and financing platform, financial institutions and social capital raised RMB 5.6 billion, and acquired RMB 5.6 billion from the international private equity giant KKR and other shareholders through financing. France's SMCP Group's 84.5% stake, the overall transaction amount of about 1.3 billion euros, including part of the SMCP Group's debt. Upon completion of the transaction, SMCP's founders and management and KKR retained a minority stake in the company.
SMCP Group is located in the international fashion trend center of Paris, France, with Sandro, Maje and Claudie Pierlot three internationally renowned luxury brands with their own characteristics and complementary positioning. The SMCP Group achieved net sales of 785 million euros in 2016 and 1 billion euros in 2019. The SMCP Group ranks 8th in the “Top 20 High-growth Companies in Deloitte 2017 Global Luxury Products†with a compound annual growth rate of 32.8%. After the successful merger and acquisition, the R&D capability and design level of Yinchuan Binhe Ruyi Clothing will be enhanced, which will make Ruyi Group take a big step towards the development of clustering and high-end internationalization mode, and realize Yinchuan to create “the textile capital†and “fashion capitalâ€. The goal of the high-end industry development pattern. After the acquisition of SMCP Group, Ruyi Group also entered the ranks of the top 10 fashion brand operators in the world. Deloitte Touche Tohmatsu Limited's 2017 Global Powers of Luxury Goods report announced the list of the world's top 100 luxury goods companies this year. Shandong Ruyi Holding Group's French SMCP Group ranked 39th.
Don't forget the beginning of the heart and continue to give gifts to the 19th National Congress
On the occasion of the 19th victory of the Welcome Party, SMCP was successfully listed on the Euronext in Paris, and Mr. Tian Youqiang, Chairman and General Manager of Yinchuan Industrial Fund Co., Ltd. was invited to attend the ringing ceremony. At this point, the SMCP M&A project has enabled Ruyi Group to complete the transformation from a full-production enterprise to a brand-operated enterprise, from the world's largest yarn and wool textile enterprise to a fashion brand group. “Yinchuan Industry Fund helps Ruyi Group to acquire SMCP, and the resources of Ruyi Group in the Chinese market and the entire Asia-Pacific region will be utilized efficiently. The cooperation can help SMCP to occupy more market share.†Tian Youqiang said that he wished to own in the Asia-Pacific region. More than 3,000 points of sale, including 700 points of sale in Mainland China, its extensive sales network and accurate insight into the local market can help SMCP promote new store expansions in the region, maintain strong growth momentum, and help SMCP fully implement and even Exceeding its business development plan in Asia. The merger and listing in France will definitely drive the rapid development of Yinchuan Modern Textile Industry. The Binhe Ruyi Technology Industrial City in Binhe New Area will also fully meet the requirements of SMCP and provide a full range of services from raw materials to finished product design and processing. Binhe Ruyi Science and Technology Industrial City will also upgrade from the traditional low value-added textile industry, and the output value and profits and taxes will all reach Yinchuan, creating an end-to-end smart textile industry cluster.
Yang Lan, director of the Yinchuan Financial Work Bureau, said: “Yinchuan City has established the Ruyi Technology Industrial City Fund through capital operation to help Ruyi projects be completed and put into operation in Yinchuan Binhe New Area; to carry out overseas mergers and acquisitions, to promote the Yinchuan smart textile industry and the world's top fashion brands. The marriage has made Ruyi Group take a solid step towards clustering and high-end internationalization. This is not only the successful case of Yinchuan City using the “integration of industry and finance†model to support the development of industry and leading enterprises, but also the influence of Yinchuan Industrial Fund brand from the domestic trend. The international logo. "In the future, Yinchuan Industrial Fund Company will thoroughly implement the spirit of the 19th Party Congress and continue to implement the "green, high-end, harmonious and livable" development concept under the guidance of the "financial strong city" strategy. Yinchuan made new contributions to economic and social development.
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