Due To The Acquisition Of Milan Buyer'S Shop, The 3 Day Suspension Of Modern Boulevard.

China

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Group Limited by Share Ltd (002656.SZ), formerly known as Guangzhou's nundi Road clothing and Limited by Share Ltd, announced yesterday that it had terminated its acquisition of Excelsior Milano from Milan luxury goods department of Italy Coin SpA, Milan, because the prerequisites for July 26th were not satisfied until the latest date of delivery.

In June 21st this year, modern Avenue passed the acquisition of related assets of Excelsior Milano business with 21 million 300 thousand euros of its own funds.

Today, the group points out that although the precondition of "obtaining relevant regulatory documents of the relevant authorities" has already been achieved by the group and its wholly owned subsidiary, Hongkong's limited government, "the pfer of the key contract by the relative party to the contract" has not yet been fully met.

The two sides subsequently held active consultations on whether to postpone delivery, but it was not until August 1st that it was not possible to agree on the arrangements for the delivery of the delay, so the automatic termination of the asset acquisition agreement signed before was no longer binding.

Modern Avenue indicates that the termination of the group's business activities will not have a substantial impact. In addition, the group will continue to explore and adjust the favorable cooperation plan based on the business strategy and Gruppo Coin SpA, combining resources advantages of both sides, and will continue to integrate the global resources needed for strategic development and enhance its international competitiveness.

In 2015, the group bought a 51% stake in the sports brand of the same name Belgium designer Dirk Bikkembergs for 40 million 680 thousand euros.

Modern Avenue has said that the acquisition of Excelsior Milano is an important measure to build the global fashion ecological chain of the group. It helps the group to further build a perfect global supply chain system, share the international influence of Excelsior Milano and the resources of more than 300 international famous brands, and has planned to open 5 Excelsior Milano in China before 2020, and the first one has been selected in Macao and will open in the second half of this year.

Excelsior Milano opened in 2011. It is located near the Duomo chapel in Milan. The sales floor area of the seven floor is about 3000 square meters. It mainly covers men's wear, women's wear, accessories, restaurants and supermarkets. It has a good relationship with Valentino, Versace, Gucci, Givenchy, Lanvin and so on, and its annual sales amount is about 40 million euros.

Gruppo Coin SpA, the parent company of the department store, split the listing of OVS SpA (OVS.MI), which includes fast fashion brand OVS and chain corporation Upim in mid 2015, and currently holds 52% of OVS SpA.

Gruppo Coin SpA also owns the Coin of middle end department store, CoinExcelsior, department store and children's brand Tana, which have branches in Rome and Venice, while Gruppo Coin SpA is owned by private Holdings Company BC Partners.

The 002656.SZ stopped trading on August 3rd, and the stock closed at 17.14 yuan on Tuesday.

The group has about 400 private brand stores in China, and operates an international luxury brand agency business. It has opened about 200 stores for Salvatore Ferragamo, Emporio Armani, Bally, Max Mara, Givenchy, Rimowa and Tumi.

Due to the economic slowdown in China, the high-end men's clothing business has been under great pressure. In the first 2016 quarter of this fiscal year, the group's revenue fell by 0.11% to 222 million 100 thousand yuan, and from profit to loss, from 14 million 464 thousand yuan to net loss of 10 million 600 thousand yuan from the same period last year, it has suffered a continuous loss of three quarters.

The group also issued a profit warning, expecting a net loss of 1000-2500 yuan in the first half of fiscal year, compared with a net profit of 23 million 944 thousand and 400 yuan in the same period last year, mainly due to the no improvement in the terminal retail market, the rising operating costs and the new business sector being still in the investment phase, and the increase in interest rates on bank borrowings and expenses in the same period last year.

In the 2015 fiscal year, the group's annual revenue increased by 3.47% to 724 million 200 thousand yuan, and net profit dropped 31.54% to 10 million 217 thousand yuan.