Summa Apparel M & G Men's Brand "GXG"

On the evening of the 18th, Summa apparel announced that the company will acquire a 71% stake in Ningbo Zhongzhe Mushi Holdings Co., Ltd., the owner of the mid-to-high end casual menswear brand “GXG”, for about RMB 2 billion. The "major event" that the company claimed is finally settled.

The announcement indicated that Zhejiang Senma Fashion Co., Ltd. (hereinafter referred to as "Company" or "Summa Apparel") held the thirty-first meeting of the company's second board of directors in the company's meeting room at 10:00 on June 17, 2013. Adopted the "Proposal on the Framework Agreement for the Purchase of the Shares of Ningbo Zhongzhe Mushi Holdings Co., Ltd.". At the same time, the company purchased 71% equity of Zhongzhemushan from Zhejiang Zhongzhe Holding Group Co., Ltd., Yang Herong, Yu Yong, Zhu Zhaoguo, Tu Guangjun and Mao Chunhua.

It is understood that Ningbo Zhongzhe Musan Holdings Co., Ltd. is a self-owned clothing brand company mainly located in mid-to-high-end casual men's wear. Its "GXG" and "gxg.jeans" brands have created urban youth fashion, exquisite and simple wear. Style is the leading brand of urban youth casual menswear. At present, Zhongzhemushan has opened more than 1,200 retail outlets in major department stores and shopping malls nationwide, and ranks the top three in the sales of similar men's brands of major department stores such as Wanda, Yintai, Ocean Department Store and New World Department Store. Taobao platform men's e-commerce sales also ranked first.

According to the announcement, the transferor predicts and promises: 1) Zhongzhe Mushan's net profit for 2013 shall not be less than 265 million yuan; 2) Zhongzhe Mushan's net profit in 2014 and 2015 shall not be lower than the growth rate of the previous year. 20%. If Zhongzhemushang has lower performance than 2013, 2014 and 2015, the transferor will compensate the company accordingly.

This agreement is an intentional agreement. In the future, a formal equity transfer agreement shall be signed in accordance with this agreement. The terms and conditions of the formal equity transfer agreement shall comply with the provisions of this agreement and be determined in accordance with this agreement. The formal implementation of the equity acquisition is still subject to further negotiation and negotiation based on the auditing and evaluation results of the intermediary agencies, and is reviewed by the company’s board of directors and shareholders’ meeting, and finally approved by relevant government departments. There is still uncertainty about the equity acquisition. The majority of investors pay attention to investment risks.