Japan’s RENOWN Company, which is in the process of restructuring, held an extraordinary general meeting of shareholders in Tokyo on July 29 and decided to issue additional shares to China’s Shandong Ruyi Technology Group and accept three Chinese directors, making Shandong Ruyi the company’s largest shareholder.
RENOWN will issue approximately 4 billion yen (approximately RMB 310 million) of additional shares to Shandong Ruyi Technology Group. Shandong Ruyi will hold 41.18% of the shares and become the largest shareholder, thus having absolute say in RENOWN’s business policies. In addition, the two companies plan to establish a joint venture in Beijing.
As a clothing company with multiple brands, RENOWN was founded in 1902 and is a well-known listed company in Japan. Affected by Japan’s economic downturn, the company’s operating performance has been poor in recent years. It received a capital injection from Ruyi Group in order to regroup and strengthen its financial system and expand its market share in China and other Asian markets.
Qiu Yafu, chairman of Shandong Ruyi Group, said in an interview that Ruyi Group has acquired an advanced brand company in Europe and has such a brand partner in Japan, coupled with China’s huge market and Ruyi’s manufacturing technology , can be described as 4-in-1, and I believe it will accelerate the strategic transformation of enterprises.
Shandong Ruyi Group was established in December 2001 with a registered capital of RMB 150 million. It ranks 13th among the top 500 Chinese textile and garment enterprises in terms of comprehensive competitiveness. In May 2010, Ruyi Group officially signed a capital cooperation agreement with RENOWN in Tokyo, Japan, with the support of the Export-Import Bank of China.
