After the closing of August 22nd, Shanghai Yuyuan (SH:600655) released its financial report for the first half of 2023. During this reporting period, the company achieved a total operating revenue of 27.44 billion yuan, marking a growth of 21.9% compared to the adjusted data from the same period last year. Net profit attributable to the parent company reached 2.218 billion yuan, showing a remarkable surge of 225.8% when compared to the adjusted data from the previous year.
In recent years, Shanghai Yuyuan has pursued a strategy of “industrial operation + industrial investment,” gradually forming a cluster of industries targeting household consumption. This cluster primarily includes business sectors such as jewelry fashion, cultural commerce, cultural dining, food and beverages, beauty and wellness, domestic heritage wristwatches, cultural creativity, mixed-use real estate, and commercial management.
Notably, the jewelry fashion sector witnessed substantial year-on-year growth in the first half of the year. The rapid expansion of new model stores led to a revenue of 21.11 billion yuan, marking a 35% increase year-on-year. This revenue accounted for a higher proportion of 77%, surpassing the overall performance of the company.
Within this sector, the most well-known brands include “Laomiao” and “Ah Yat,” among others. In addition to these iconic brands, the sector also holds controlling stakes in the French fashion jewelry brand DJULA and a joint venture with the internationally acclaimed jewelry brand Damiani. In 2021, the company successfully incubated the diamond brand LUSANT in its laboratory. Shanghai Yuyuan is one of the few companies in China that has a comprehensive presence in both domestic and international markets, covering gold, jewelry, and cultivated diamonds.
In May of this year, Shanghai Yuyuan announced the further acquisition of all the equity owned by Alexandre Corrot, the founder of the French designer jewelry brand DJULA, and all individual shareholders. This move was aimed at strengthening the integration and optimization of its globalized industrial chain resources in the field of jewelry fashion.
According to the financial report, Shanghai Yuyuan’s wholly-owned overseas subsidiary, Shanghai Yuyuan Jewelry Fashion Group, signed an Equity Purchase Agreement for DJULA with Alexander Corrot and five individual shareholders, acquiring all the equity held by these individuals for a total of 4.2994 million euros, representing 30.72% of the total share capital of the company. Following this acquisition, Shanghai Yuyuan Jewelry’s shareholding proportion in DJULA will increase to 68.87%. Additionally, Shanghai Yuyuan Jewelry Fashion Group will make a capital contribution of 2.86 million euros to DJULA by January 31, 2024, raising its shareholding proportion to 74.15% after the capital increase.
Simultaneously, Yu Beta S.à r.l. and DJULA’s preferred stock shareholder, Audacia SAS, signed a supplementary Memorandum of Understanding (MoU). In the event of the full repurchase of preferred shares, Shanghai Yuyuan Jewelry’s equity holding in DJULA will rise to 100%.
Furthermore, in May of this year, Shanghai Yuyuan announced a joint sale of 100% equity in IGI Group, with a transaction value of approximately $569 million USD, in partnership with the Roland Lorie family. Among this, Shanghai Yuyuan sold 80% equity for about $455 million USD. In September 2018, Shanghai Yuyuan had acquired 80% equity in IGI Group, a move aimed at integrating global operations and expanding laboratory diamond business.
| Source: Official Financial Report
| Image Credit: Official Website
| Editor: LeZhi