From the Sector

The Autumn Edition of Intertextile Shanghai Home Textiles will open today, returning as a major event for big-name players in the domestic and international home textile industry. Covering six halls, it will accommodate around 1,040 suppliers from around 30 countries & regions. With 40,000 visitors expected to attend, including import & export corporations, wholesalers, distributors, chain stores and home product manufacturers, the fair is anticipated to be an ideal platform for suppliers to introduce new products to the market.

Suppliers set to seize market shares in China’s revitalised home textile market
China’s home textile market has been growing steadily, with both domestic and overseas suppliers determined to take advantage of Intertextile Shanghai as a platform to gain market share. This year, premium editors from China, including Beijing Xinyada, Beijing Euroart, Jasonite, SATI and Hangzhou Antex, will be showcasing their high-end collections while international contract business suppliers, such as JAB Anstoetz and Morphrow, are also present to cater to the growing demand for their quality products.
In addition to a majority of local brands and four domestic pavilions from Shaoxing, Tongxiang, Haining and Yuhang regions, there will also be international country & region pavilions from Belgium, India, Pakistan, Taiwan and Turkey, showcasing their specialised products.

Around 1,040 exhibitors covering every home textile sourcing need
Growing middle and upper classes in China have seen consumers’ buying trends expand to buying combinations of items with particular design trends. Matching this trend, a number of whole home exhibitors that provide one-stop services, from selecting home textile products to giving home decoration ideas, have been reaping the benefits in recent editions of Intertextile Shanghai Home Textiles – and 2018 is set to continue reflecting this trend.

Around 1,040 exhibitors at Intertextile Shanghai Home Textiles will showcase a wide variety of home textile products, including bedding, bath, table & kitchen, curtains & upholstery, textile designs & technology, whole home, sun protection, wall coverings and carpets & rugs. This diverse range of offerings establishes the reason why Intertextile Shanghai attracts genuine, high-quality buyers – across the spectrum, there’s something for every buyer at this fair.  

Fringe programme events to provide insight and inspiration
Intertextile Shanghai Home Textiles aims to provide inspiration for the next season at the same time as providing a platform for business interactions. At this edition’s fringe programme, key events include the InterDesign – Trend Area, displaying three key trend themes for A/W19 in collaboration with the international trendsetter NellyRodiTM Agency. Trend tours and forums will also take place, giving visitors the opportunity to learn and discuss lifestyle trends with designers and trend experts.

At Contract Business 360o, the fair will feature a showcase area at hall 5.1 displaying quality contract upholstery from leading exhibitors, and seminars on current design and market insights of the contract business sector. Catering to popular demand is the return of the Digital Printing Micro Factory, demonstrating a complete production process onsite, alongside forums on the benefits of digital printing & latest production technics. The Andrew Martin International Interior Design Summit will see a forum of experts share their design insights in the new information era, whilst the 2018 Home Furnishing Crossover Exhibition will demonstrate design talent and creativity of interior designers, and present new home living styles.

The show will be held from 27 – 30 August in the National Exhibition and Convention Center in Shanghai. Intertextile Shanghai Home Textiles – Autumn Edition is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).

Funds advised by Alpina Capital Partners LLP ("Alpina", "Alpina Partners") and private Investor Jan Verdenhalven sold all shares in Dolan Holding GmbH and Dolan GmbH ("Dolan") to Dralon GmbH ("Dralon"), a leading producer of raw white acrylic fiber headquartered in Dormagen, Germany. Dolan is based in Kelheim, Germany and is a specialty chemicals business mainly focusing on spun-dyed acrylic fiber for outdoor textiles. The parties agreed not to disclose the terms of the transaction.

Florian Strehle, a Partner with Alpina comments on the latest exit of the pan-European technology investment firm: "After successfully exiting European Carbon Fiber GmbH to Solvay in November 2017 the trade sale of Dolan to Dralon is the second exit to a strategic acquirer for Alpina within seven months. We would like to thank Luis Puncernau, Managing Director and CEO of Dolan and the entire management team as well as our co-investor Jan Verdenhalven for the support and the very positive development of the company during the past three years. Dralon and Dolan is a perfect match."

Jan Verdenhalven, investor and former Managing Director of Dolan Holding GmbH adds: "Dralon is the ideal new owner for Dolan, its employees and customers. The businesses complement each other perfectly. We are confident that this transaction will significantly strengthen the combined acrylic fiber business activities."

Stefan Braun, Managing Director and CEO of Dralon explains: "It is a consistent move for Dralon to strengthen its position as a leading supplier of acrylic fiber. The geographical proximity, the expertise and know-how of Dolan and its employees in addition to the highquality products and distinctive customer services convinced us to acquire Dolan. The product ranges complement each other perfectly without any overlap. Going forward we will further develop Dolan and leverage its potential."

This July at Interfilière, discover responsible innovation and well-being at the ROICA™ booth.

ROICA™ partners create innovative fabrics for the Modern Wardrobe. See, feel, imagine and learn why brands are choosing ROICA™, view the collection of superior functional fabrics that revolutionize the premium stretch market, thanks to advanced yarn solutions dedicated to specific needs of the contemporary consumer.

Spearheading the stretch market, ROICA™ elevates new standards for intelligent contemporary consumers. ROICA™ representatives will excite you as they demonstrate functionality, their advanced color technology system, and show you a fantastic range of stretch innovations from smart shapewear to soft compression that can enhance designs. Come visit the ROICA™ booth to learn about the ongoing commitment to responsible innovation and creativity. As you enter, you will experience 3 Modern Wardrobe concept zones that showcase:

1. ROICA™ Lifestyle – a beautiful selection of commercial lingerie, swimwear and nightwear items from leading brands that include ROICA™, embracing the ROICA™ Eco Smart family of yarns.

2. ROICA™ Innovation – an exciting area that shares our textile partners’ innovations to inspire endless possibilities. This area will showcase lingerie concept garments for brands that will spark ideas for AW 19/20.

3. ROICA™ Lab – the zone that navigates you toward the latest hi-tech Modern Wardrobe solutions. This zone hosts unmatched premium stretch performance designed to exceed contemporary business and consumer desires belonging to ROICA™ Eco-Smart family and ROICA™ Feel Good family .

ROICA™ Eco-Smart family, the world's first range of responsibly made premium stretch fibers creating ROICA™ smart yarns that offer sustainable solutions with prestigious certifications:

• Global Recycling Standard (GRS) Version 3.0 certified by Textile Exchange - ROICA™ Version 3.0 yarn constructed with more than 50% pre-consumer recycled content.
• Cradle to Cradle Certified™ Gold for product and ingredients - ROICA™ yarn evaluated throughout the supply chain for lower impacts on human and environmental health. Striving toward eliminating all toxic and unidentified chemicals for a safe continuous cycle. Hohenstein Environment Compatibility Certificate - ROICA™ proudly breaks down without releasing harmful substances.

ROICA™ partners featuring ROICA™ Eco-Smart family include:
Giemme, Iluna Group S.p.A, Maglificio Ripa S.p.A, M.I.T.I. Spa, Penn Textile Solutions, Sofileta, Tessitura Colombo Antonio Tintex Textiles

ROICA™ Feel Good family, a brilliant range of advanced stretch fibers that deliver personal performance and measurable wellness. Thus, providing freshness and comfort metrics perfect for travel, sport, leisure and more. The family now offers a premium innovation:

• ROICA™ CF, an innovative yarn that neutralizes odors thanks to an active ingredient interlocked within the yarn. This durable stretch yarn offers a fantastic property to every wearer.

ROICA™ partners featuring ROICA™ CF include: Maglificio Ripa S.p.A., TINTEX Textiles.

ROICA™ also presents the following families through our textile partners’ innovations within the ROICA™ Innovation area:

• ROICA™ Color Perfect family - advanced color technology system that delivers a perfect color match finish with an undetectable matte look for the stretch materials.
• ROICA™ Contour family - high performance stretch yarn control that delivers a calibrated form optimizing power, softness and comfort.
• ROICA™ Resistance family - innovations linked to durability and functions to match particular applications including heat and chemical resistance in make and wear.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.