Recently Sleemon has published an announcement that the company together with the SOFALAND S.R.L. (the company hereof is an overseas company registered in Italy, hereinafter referred to as "SOFALAND") has signed the Equity Transfer Agreement. The company bought 51% equity of Jiaxing Milano & Design Company (hereinafter referred to as Milano & Design) at a price of USD 44,708,700.

According to the announcement, the registration capital of Milano & Design is USD 12.60 million. Its main businesses include research and development, design, manufacturing and sales of the high-end soft furniture in living room and bedroom. It manufactures products including sofa, soft bed and supporting products, etc. Among them, sofa is its main product. Its location of independent brand is the middle and high end products. From Jan. to Aug. of 2017, Milano & Design has realized operating revenues of RMB 257 million and net profits of RMB 8,858,900.

The announcement states that this trade contributes to integration of advantageous resources, exertion of cooperation, realization of overall strategic planning and layout of the company and improvement of the continuous profit capacity and market competition of the company.

The industry professionals state that the main operational businesses of Sleemon include civil furniture business, hotel furniture business and film culture business, among which the civil furniture business mainly includes production and sales of middle and high end furniture products mainly including the mattress, soft bed and sofa; The hotel furniture business mainly includes providing of the indoor furniture and supporting wooden products for fitment for the starred hotels or large public construction projects. The film culture business mainly includes investment, producing, publishing and derivative businesses of TV plays, films, etc.

In the first three quarters of this year, the company has realized operation revenues of RMB 2.047 billion, increasing 44.4% on the year-on-year basis. Achieve attributable Net Profit of RMB 204 million, up 40.2% on the year-on-year basis.

As for the mattress, one of the main products of the company, people requires more for the functional attribute of the mattress among the consumption of the household goods and it has a higher production standard and automatic extent. Currently, the increasing speed of this industry has dropped to one digit. Under this background, enterprises whose channel keeps playing an important role will be expected to occupy the market share faster.

Currently 1,250 stores of Sleemon (up to the third quarter of 2017) have a flexible expansion space. Based on its channel improvement, store expansion and constantly improving brand permeability, revenues of the self-brand of the company may keep increasing and the profitability will gradually improve.

Milano & Design acquired hereof mainly produces sofa, which matches the current main business of Sleemon and is consistent with the requirements for development strategies of a public company. Relying on its mature experience in production of sofa and its popularity in the industry, integrated with the asset ability as a public company and its channel advantages, Sleemon will make an important improvement in terms of the sofa business, which is expected to promote the performance growth as a public company.

(Source: JJGLE.COM)