Beichun: Both sides are hit

Absrtact: Sina's 19% stake in the purchase of Macaulay, the CEO of Michael Beichun accepted the "first financial daily" interview

Sina's 19% stake in the purchase of Macaulay, the CEO of Michael Beichun accepted the "first financial daily" interview.

First financial daily: With Sina, China and the reasons for the trend of cooperation?

Beichun: Both sides are hit, the negotiation time is not long. Consider the cooperation with Sina because the other side in the network platform has an unusually rich resources, including its advertising resources, user resources, and so on, the future of the wheat forest is to expand the network business, so the cooperation with SINA will inevitably drive the future of the online business development of Macaulay. As for the Chinese trend is its operating kappa and robe Di Kappa brand, this just complements the development of wheat in sports apparel field, improve our across all types of apparel industry, we will consider with China trend joint venture to develop new brands, and specialized in sports apparel channel.

Daily: Why is there an option in the agreement?

Beichun: According to the agreement, the shareholders also agreed to give Sina and China to move one option, Sina and China's move can therefore buy 48254173 shares of the MAI test. Also reserved an option for the other side of the future increase in leeway. This is also the trend of Sina and China bullish on our performance.

Daily: Will the future focus on the network platform?

Beichun: We currently have more than 400 online stores, mostly franchise stores, and some of the direct shop began to gradually turn to join the store, we will not be a large expansion of the store, but more focus on the network platform, this and Sina's capital cooperation can be seen in our confidence in the development of the network. We currently have 10 own brands, in order to strengthen the core competitiveness, we will continue in the apparel and home areas to develop their own brands. Now our network model is in addition to its own brand also joined hundreds of of Third-party brands to sell together, this model will help the future of the MAI test to create an online shopping mall.

Daily: Macaulay's 2010-year quarter and full-year earnings showed a net profit of $1.1 million last year, down 61.7% from 2.9 million a year earlier. Macaulay's net profit for 2010 was $4.4 million, down 38.4% from 2009 's 7.2 million dollar, and net profit slipped a lot.

Beichun: Last year in the four quarter of each big network company capital operation is frequent, too many PE, VC flows into the network market, the competition is intense, therefore the profit declines. As for the whole year, the decline was mainly due to the fourth quarter of last year's drag, and we have invested heavily in internet marketing this year. The total revenue of Internet business in fiscal year 2011 is expected to increase 40% year-on-year. Of course, we also saw Taobao, when the competitive pressure, so this year in the fashion design of apparel and across the category to make a difference in the rich degree of competition.