What'S The Meaning Of Investing Another 179 Million Yuan In Longzi'S Investment In Medical And American Business

On the evening of July 21, langzi, a women's clothing brand, announced that it would spend 179 million yuan to win all six medical and beauty institutions. It is understood that in recent years, landsie has been building a pan fashion ecosystem with multi industry interconnection and collaboration. At present, the company has three major businesses: Women's wear, medical beauty and green baby children. What is the significance of increasing investment in medical and American business of langzi?

According to the announcement, Lanzi Medical Management Co., Ltd., a wholly-owned subsidiary of langzi Co., Ltd. (hereinafter referred to as ranzi medical), signed equity transfer agreements with six institutional minority equity holders of Jingfu medical and Milan Baiyu brands, and purchased 30% of the shares of the above-mentioned companies with their own funds of 179 million yuan. After the acquisition of the six holding institutions of Longmei, the completion of the six. In this regard, landsie said that the acquisition is another important measure to accelerate the implementation of the company's medical beauty business development strategy, which is conducive to further enhancing the management and control ability and brand expansion ability of the company, and further improving the performance scale and long-term operation ability of Longzi medical beauty.

Since 2016, landsie has entered the medical beauty industry through acquisition. Last year, the company completed the acquisition of 100% of the equity of Longzi medical by issuing shares. At present, Lanzi shares a total of high-end medical and beauty brand Milan Boyu, technical medical and beauty brand gaoshengyi, light medical and multi store chain brand Jingfu medical. By the end of last year, langzi has set up 13 medical and American institutions in China. The company said that the layout of medical beauty business is to focus on women's fashion consumption needs, in addition to "clothing beauty" but also to meet the "beauty" needs of consumers.

As a matter of fact, langzi's increasing investment in medical and American business has deep meaning. According to the report released by prospective industry research institute, the scale of domestic medical cosmetology market will increase year by year from 2012 to 2019, with a compound annual growth rate of 29%. Last year, the scale of domestic medical beauty market was 11.7 billion yuan, up 22.2% year on year. At the same time, according to the 2019 annual report of langzi Co., Ltd., the company's medical and American business achieved 630 million yuan of operating revenue, a year-on-year increase of 31.27%, and a profit of 107 million yuan, an increase of 49.79% over the same period of last year.

However, last year, the revenue of women's wear, the main business of langzi, increased only by 9.95% to 1.533 billion yuan, with an operating profit of 143 million yuan. In addition, akabang, a Korean children's wear brand acquired by RANTZ in 2014, is still in a loss, with an operating profit loss of 22.0397 million yuan during the reporting period.

In an interview with China business daily, Wu Shaobo, an expert in the clothing industry, said that although the women's clothing business of langzi shares still has a single digit growth, it is an indisputable fact that the overall growth of the clothing industry has slowed down. In recent years, the popularity of the medical beauty industry has not decreased and there is room for growth. The increase of investment in medical beauty business by Landsat shares is also considered for the overall performance of the company.

On July 14, the company's performance forecast for the first half of this year released by RANTZ Co., Ltd. showed that the company expected a net loss of 3-6 million yuan in the first half of this year, compared with the net loss of 19 million to 28 million yuan in the first quarter report before, showing a significant recovery. Langzi said that in the second quarter of this year, the company's women's clothing business increased its online operation marketing efforts and reduced offline terminal sales, and at the same time fully restored the medical beauty business, which made the overall revenue and gross profit rate rebound better than expected in the second quarter, and the company's short-term losses affected by the new crown pneumonia epidemic eased.