Renown has resolved to enter into a capital and business alliance agreement with its largest shareholder, Shandong Ruyi Technology Group Co., Ltd. (hereinafter, "Shandong Ruyi"), and its parent company, Jining Ruyi Investment Co., Ltd. (hereinafter, "Jining Ruyi"), and to issue new shares to Jining Ruyi through a third-party allotment. The Ruyi Group's shareholding in Renown will increase from 41.18% (as of the end of February 2013) to 53.33%, making the group Renown's parent company.
In light of recent changes in consumer trends, Renown has identified an urgent need to expand its sales channels, including domestic shopping centers and other commercial facilities, and strengthen its e-commerce business, while maintaining sales through its core department store sales channel. However, given the company's current financial situation, it has determined that it will be difficult to raise the necessary funds through loans from financial institutions, a public offering, or a shareholder allotment. This resolution was reached in order to overcome these challenges and further strengthen its partnership with the Ruyi Group, which aims to further grow as an international comprehensive apparel manufacturer.
Renown concluded a capital and business alliance agreement with Shandong Ruyi in May 2010. With the funds raised through the issuance of new shares, Renown has implemented various measures to improve brand value, such as investing in facilities such as store renovations and promoting sales promotion activities. It has also established Beijing Renown Ruyi Shi Commercial & Trading Co., Ltd., a joint venture with Shandong Ruyi, and has expanded the Renown brand in China through this company, as well as expanded the opening of existing brands and developed new brands in retail businesses where growth is expected.
In light of recent changes in consumer trends, Renown has identified an urgent need to expand its sales channels, including domestic shopping centers and other commercial facilities, and strengthen its e-commerce business, while maintaining sales through its core department store sales channel. However, given the company's current financial situation, it has determined that it will be difficult to raise the necessary funds through loans from financial institutions, a public offering, or a shareholder allotment. This resolution was reached in order to overcome these challenges and further strengthen its partnership with the Ruyi Group, which aims to further grow as an international comprehensive apparel manufacturer.
Renown concluded a capital and business alliance agreement with Shandong Ruyi in May 2010. With the funds raised through the issuance of new shares, Renown has implemented various measures to improve brand value, such as investing in facilities such as store renovations and promoting sales promotion activities. It has also established Beijing Renown Ruyi Shi Commercial & Trading Co., Ltd., a joint venture with Shandong Ruyi, and has expanded the Renown brand in China through this company, as well as expanded the opening of existing brands and developed new brands in retail businesses where growth is expected.
