There Is No Way To Hongkong'S Well-Known Leisure Brand JEANSWEST Mainland Business HK $800 Million To Become A Major Shareholder.

Hongkong's famous casual wear brand Jeanswest

Sunrise group announced on Friday afternoon that it wanted to sell the mainland's clothing retail business which has been losing money for many years to the founder and major shareholder Yang Zhao and Yang Xun brothers, focusing on profitable businesses and brands in Hong Kong, Macao and Southeast Asia.

In spite of the past few years, the group has restructured the retail network and improved the efficiency of the supply chain, making it more flexible and accurate in product supply.

Promote more resources and publicity, and launch online business to grasp China's expanding electricity supplier market.

However, due to

The more intense the competition is, the more the electricity supplier is going to fight against the store business. Today, JEANSWEST is hard to attract customers only by its reputation of "value for money".

Therefore, all efforts of the management did not bring substantial improvement to JEANSWEST's mainland business.

Up to 5 months before May 31, 2018, 12 months before December 31, 2017 and 12 months before December 31, 2016, JEANSWEST's mainland China business recorded pre tax profits of HK $-4532.0, HK $-5045.3, HK $31 million 199 thousand, and after tax profits of HK $-4594.2, HK $-4509.6 and HK $66 million 747 thousand.

The above financial information shows that JEANSWEST's retail market in mainland China has continued to deteriorate and its losses have intensified. After the sale is completed, sunrise group will try to promote business pformation through maintaining the clothing retail business in Hongkong and expanding to the Southeast Asian countries, as well as Mongolia, Kampuchea, India, Saudi Arabia Arabia and the United Arab Emirates.

Asahi Group expects to sell HK $31 million 333 thousand net income to mainland China's retail business, which is the acquisition premium of HK $768 million 700 thousand of JEANSWEST's net assets.

Stripping the mainland business is the second of JEANSWEST's founder Yang Zhao and Yang Xun brothers to privatize their brands over the past year.

In early 2017, sunrise group sold the Jeanswest International (L) Ltd of Australia and New Zealand for HK $220 million to major shareholders of the group.

The paction price of mainland apparel retail business is HK $800 million.

Data show that in fiscal year 2017,

Annual net profit of HK $88 million 669 thousand, an increase of 0.4% compared with HK $88 million 320 thousand in 2016, mainly came from HK $135 million of financial investment.

As of the end of fiscal year 2017, JEANSWEST had operated 1298 stores, representing a net decrease of 270 compared with 2016, of which 919 of franchise stores decreased by 202 compared to the same period. The retail sales of branded businesses were HK $1 billion 608 million 600 thousand during the period, compared with 1 billion 931 million 300 thousand Hong Kong dollars in 2016, which fell by 16.71%, of which the direct business income accounted for 58.93%.

Under the situation of big closes, sunrise enterprises slashing more than 20% jobs last year, from 4900 to 4000.

Driven by the news of the paction, Glorious Sun Enterprises Ltd. (0393.HK) Co., Ltd. shares rose sharply on Friday afternoon, rising at a high level of 14.81% HK $0.91, closing at HK $0.87 and 7.41%.