HEMEI Group is Teaming up with Bluebell Group and Orion Partners

HEMEI Group is Venturing into the Big Consumption Sector

HONG KONG, Sept. 6, 2016 /PRNewswire/ -- HEMEI Group (002356.SZ) has revealed its strategic blueprinting for the first time after it was renamed three months ago.

On August 29, HEMEI Group held a press conference in Hong Kong, announcing strategic partnerships with the Bluebell Group and Orion Partners, through which HEMEI will officially venture into the big consumption sector.

HEMEI CEO Li Bo said the group will take the opportunity of several policies within China's Central Government's "13^th Five Year Plan" framework. The policies include efforts in accelerating the promotion and upgrade of China's consumption sector, and building 1,000 towns with special features by 2020. Li Bo said HEMEI will comprehensively cultivate the inner value of Chinese history and culture, and embed those cultural elements into design and products. He also stressed that the group will leverage its strong brand operation capability, sophisticated manufacturing capacity and comprehensive financial services, to concretely promote the upgrade of China's consumption sector, thereby building an eco-system-like consumption platform across various industries.

"By building two to three original fashion parks in key cities, HEMEI hopes to attract the world's best designers, craftsmen, as well as elites of other consumption-related sectors to China. HEMEI will nurture and incubate fashion brands featuring Chinese cultural elements. Meanwhile, we will develop our fashion design industrial parks into the origins of global fashion elements. HEMEI also plans over 100 eco-tourism towns across China with themes of brand consumption, organic agriculture, vocational education, healthcare and medicare, cultural entertainment, and smart Internet of Things. These towns will be built in conjunction of local special historic, cultural and brand values. We believe our efforts will be in line and even lead the upgrade of China's consumption sector, and the central government's efforts in building beautiful countryside", said Li Bo.

At the press conference, Li Bo also said that HEMEI will team up with Bluebell Group, which is known as "the brand behind brands". HEMEI and Bluebell Group will jointly set up a brand operation company, which will leverage Bluebell's powerful brand operation capability to help HEMEI build its own brands and other promising domestic brands, and to introduce foreign brands to China. Bluebell Group, as very low-profile company, has successfully introduced and operated many leading international brands, such as Louis Vuitton, Davidoff, and Moschino. Moreover, the company has been successfully marketing and promoting imported premium merchandises in the Asian market since 1954. Its team is very knowledgeable about how to market and promote luxury brands, and has helped multiple brands to gain strength and earn a long-lasting reputation.

Besides Bluebell Group, HEMEI announced its partnership with Orion Partners, which also maintains a low-profile and is extremely powerful as well. HEMEI will leverage the expertise and extensive resources of Orion to provide powerful capital operation services for its major strategic projects. Orion Partners is an independent alternative investment firm focusing on Asia, with BNP Paribas, a leading international financial institution, one of its shareholders.

HEMEI CEO Li Bo added, through earlier operations, HEMEI Group has successfully formed an industrial cluster, which includes HEMEI Travel, HEMEI Commercial, Meikelumer, OCAjewellery, UF-Club, HAOMEI Asset Management, Huizhou HND, and BLD New Energy Tec. The successful operations of HEMEI Travel, HEMEI Commercial and HEMEI Finance have laid a solid foundation for the group's quality, eco-consumption business.

The half-year results recently released by HEMEI Group show that the net profit attributable to the listed company's shareholders was RMB93.5865 million, up 62.41% year on year; and the net profit of the first three quarters attributable to the listed company's shareholders is expected to be RMB128 to 140 million, increased by 109.5 to 129.20%. The increase was driven by the newly merged subsidiaries including UF-Club, UF Micro Loan, OCAjewellery, and HAOMEI Asset.