Capital In Casual Clothes &Nbsp; Giordano Inland Expansion Or Speed Up

In May 12th, Giordano issued a notice confirming the news of Zheng Yutong's acquiring company stake in Hongkong.

The announcement shows that Zheng Yutong bought a total of 218 million shares of Giordano in OTC pactions through its fully controlled Zhou Dafu company, which is equivalent to 14.58% of the issued share capital of the stock, with an average paction price of HK $4.81 per share, which involves HK $1 billion 50 million.

Zheng Yutong also became

Gaining channel advantages to ensure investment value preservation

"The rise of the new SHOPPINGMALL brings great challenges to department stores.

Giordano was founded by Hongkong businessman Li Zhiying in 1981 and listed in Hongkong in June 1991.

After Li's withdrawal, the company's shareholding has been in a relatively fragmented state, with only 3 investors holding more than 5% stake, including 11.85% of the assets held by Aberdeen, 5.99% of Deng Pu ton and 5.56% of Morgan Fleming.

Giordano's annual turnover increased by 11.8% to HK $4 billion 731 million and net profit of HK $537 million, an increase of 86% over the same period last year.

As the gross profit margin of the company grew by 20% in the first quarter of 2011 and the average selling price of the product was increased by 5%, the investment bank believed that its gross profit outlook was stable.

Giordano offers 20-35 year old consumers a natural casual clothing concept and basic casual wear with the trend.

After a long period of deep ploughing and hard work, Giordano has become the leading brand of casual wear in Taiwan's consumers.

Brand marketing network of leisure clothing

Zheng Yutong, chairman of the new world development, is always active in the investment field and frequently participates in the subscription of new shares.

Prior to mid March, he bought 272 million Ping H shares of Ping An, China, at HK $19 billion 450 million.

Shanghai medicine, which is being invested in Hong Kong, is also rumoured to have won Zheng Yutong's support.

It is also reported that he plans to spin off Zhou Dafu jewelry.

Market participants revealed that Zheng Yutong's stake in Giordano was mainly based on the mainland's marketing network.

Giordano chairman Liu Guoquan said recently that he plans to add 300 new stores in the mainland this year, 70% of which are concentrated in two or three line cities.

Giordano realized net profit of 537 million yuan in 2010, the highest in 20 years.

Bring good prospects for others.

The news that Giordano has won the favor of the big family has brought good prospects for other businesses.

JP Morgan's analysis points out that the news of the stock market is positive for Giordano because the retail network of Zhou Dafu can bring synergies to Giordano, especially for Giordano's expansion plan in the mainland.

However, in the short term, it will not bring too much positive effect to the basic factors of Giordano. It will take a while for the new shareholders to get shares to bring real benefits to Giordano, especially in the promotion and distribution mode.

Experts point out that with the appreciation of the department stores, the capital of Chinese garment enterprises will become more abundant and capital operation capability will become stronger and stronger.

With the rapid development of casual clothing industry, the power of capital is gradually emerging.

With the power of capital, China's garment industry can create new advantages and stand on a higher platform.

It is also an effective way to develop China's garment enterprises and brands to a certain stage with the help of capital strength.

Over the past one or two years, a number of strong clothing enterprises have been listed, and there are a few enterprises that are actively preparing for listing.

As a well performing casual wear enterprise, it has listed and raised 1 billion 400 million yuan, of which 85% is mainly used to build 68 flagship stores and image shops with an average area of 1400 square meters.

After many clothing enterprises and brands have certain strength, talents and channels, the ability to compete is the capital of enterprises.