Youngor 120 million to acquire new Malaysia Group and smart100% Equity

Conservative estimates could raise net profit by 5% Youngor (600177). SH) A 100% stake in the takeover of Hong Kong's new Malaysia group and smart Apparel Group 2¥Q (hereinafter "smart") with a $120 million kellwood from US companies is nearing its end. This is a rare net asset acquisition success case in the mainland private enterprise's overseas mergers and acquisitions case. Youngor announced yesterday that the company had paid all its equity transfers. This is Youngor in the main business of the textile and apparel industry in the last long absence of the big investment, before, Youngor will most of the money to the real estate. According to Youngor's estimate, the acquisition of two companies each year to increase the company's sales of 360 million U.S. dollars, resulting in 12 million U.S. dollars net profit. The net profit of Youngor in 2006 is about 1.1 billion yuan, with its 2007 net profit of 140% calculated, 2007 the company's net profit will reach 1.5 billion yuan, which means that the acquisition in 2008 will provide Youngor at least 5% of the net profit growth. According to people familiar with the situation, the current operating level and current capacity of the company and Smart will provide a net profit of at least USD 20 million annually after the integration of Youngor. If true, the acquisition could provide 10% per cent of the net profit growth for Youngor in 2008. Data show that Kellwood company is listed in the United States, for the United States, one of the five major garment giants. Its men's clothing business to the new Ma group and Smart as the main body, the business content includes the world class brand of OEM business production, the United States domestic sales, apparel design and the corresponding logistics distribution system. New MA Group annual sales of 100 million U.S. dollars, in recent years, the new horse group net profit stability of about 10 million U.S. dollars. According to Youngor related executives, the company and Kellwood on the acquisition of New Malaysia group negotiations, the earliest start in 2005, the two sides in the price differences, had to shelve. In fact, Kellwood in 2005 expected a certain degree of recession in the U.S. economy, trying to strengthen its professional capacity, and therefore expressed the desire to sell the men's department, including the new Malaysia group. After the interruption of the first negotiations with Youngor, 2007, as a result of the recession in the United States, the kellwood of the performance of the men's department fell, and then again the initiation of the sale intention. Related sources, the new MA group and smart processing brand is including the famous polo, the four international top brands, in addition, the company also has access to hundreds of U.S. department stores in the United States, including sales outlets and sales network. These are the strong support of Youngor's future entry into the US market. According to reporters, there have been many brokerages to Ningbo Youngor headquarters to investigate the details of the purchase case. GF Securities also published a study, said Youngor acquisition of Smart, through the integration of its resources, can increase the company's gross margin, because the same product processing costs, smart about twice times the price of Youngor.