Knitting Giant Jialin Jie Hit 260 Million To Win The Arctic Photoelectric, And Later To Do Business With Foxconn!

The local high-end knitted fabric producer, Shanghai Jialin Jie textile Limited by Share Ltd (hereinafter referred to as "Jialin Jie") disclosed the issue of shares to buy assets in the evening of August 5th. The company intends to issue shares, and is expected to make a price of 260 million yuan, to acquire 100% stake in the Arctic optoelectronics, and to support the fund-raising of not more than 50 million yuan. After the completion of the transaction, the company will add optical filters, optical communication devices and module manufacturing business besides the textile and clothing business.


Jia Linjie said that in the market environment where the macro-economic growth slowed down and the textile industry was in the doldrums and faced with the adjustment of industrial structure, the company took the initiative to adjust its business. Through this transaction, the optical communication industry with good development prospects was cut into. It is beneficial for the company to grasp the wave of 5G development in the optical communication industry in a timely manner, share the investment opportunities, and at the same time defuse the risks that a single textile business may bring.


This reporter learned that Arctic photoelectric is the largest optical filter producer in China. It is a high-tech enterprise with optical coating technology as the core, which integrates research, development, production and sales. Its main products include optical filters, optical communication devices and modules. Optical filter products are applied in many high-tech fields, such as optical communication, optical sensing and bio photonics. Among them, optical filter is the most widely used technology and the most difficult technology. Optical filter is located in the upstream of the optical communication industry chain. The downstream industry chain is optical communication devices and module manufacturers, and the terminal customers are optical communication equipment manufacturers.


Since its establishment in 2003, Arctic photoelectric has been engaged in R & D and production of optical communication related products, and has accumulated a wealth of technology and experience in this field. Especially in the aspect of coating, the target company owns the production capacity of 50Ghz tunable optical filter, and its business covers many countries. Its customers include Foxconn (Foxconn), Finisa (Finisar), Guang Sun Science and technology, and many other industries with high reputation.


According to public information, Jialin Jie is committed to the development, production and sales of high-end knitted fabrics in sports and leisure fields, as well as the production and sale of all kinds of high-end fashions. The main products of the company are three major knitted fabrics, which are self-developed, namely, the fleece fabric series represented by high elastic fibers, high density windscreen clothing fabrics, weft knitted wool fabrics represented by thin thermal elastic underwear fabrics, and sports functional fabrics represented by wet heat insulation air interlayer garment fabrics. At the same time, according to the needs of customers, the company also makes further processing of some of the flour materials, and sells them to customers in the form of garments.


In 2018, Jia Lin Jie continued to develop many customers including the armed police force, UNIQLOCO., LTD. and so on, in order to stabilize more customers such as POLARTEC, LLC, ICEBREAKERLIMITED and so on, and strive for more orders.


In order to further improve and optimize the company's textile business structure, improve its business synergy and management efficiency, Jay has transferred the relevant assets and liabilities of the textile business under the parent company to the subsidiary company of Shanghai Jialin Jie Textile Technology Co., Ltd. (hereinafter referred to as "Jialin Jie textile technology"). The overall transfer plan is as follows: the company intends to transfer the related assets and liabilities of the textile business under the parent company (excluding exceptions for objective reasons) to the textile technology according to the March 31, 2019 basis, and the changes in assets and liabilities between the base date and the actual transfer date will be adjusted and transferred according to the actual situation. Reporters learned here, Jialin


As of December 31, 2018, Jialin Jie's total assets were 1111240612.41 yuan, total liabilities 159385665.76 yuan, net assets 949406035.26 yuan, operating income 879139974.80 yuan, net profit 17781746.20 yuan; as of December 31, 2018, Jialin Jie textile technology total assets 9860864.25 yuan, total liabilities 6300290.74 yuan, net assets 3560573.51 yuan, operating income 6034761.08 yuan, net profit 552016.39 yuan.


Jia Linjie said that the transfer is conducive to further clarify the management system of the company's business structure, optimize the allocation of internal resources, improve business synergy and management efficiency, and facilitate the company's business development and business performance improvement.


Jialin Jie has revealed in the annual report that in 2019, the company will continue to improve its brand globalization strategy and product marketing strategy, focusing on consolidating the company's market image and improving its brand profitability. It will focus on the global market while expanding its investment in the Chinese market, and further enhance its influence at home and abroad through the display with overseas famous brands on the same stage and with the expansion of overseas markets and sales channels. Continue to cooperate with POLARTEC, LLC, ICEBREAKER LIMITED and other major customers, and strive to acquire or maintain the dominant position of the first largest supplier.