From the Sector

• Market success above expectations
• Product and market development accelerated
• Investment up to EUR 30 mn

Lenzing – The Lenzing Group is setting another milestone as a specialist for extremely high-quality products made of the renewable raw material wood. Capacities will be significantly expanded due to strong demand for Lenzing’s TENCELTM Luxe filament yarn which was first launched on the market just a few months ago. Lenzing will invest up to EUR 30 mn in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated.

“Thanks to TENCELTM Luxe, Lenzing is currently positioning itself in the premium luxury market and is embedding the issue of sustainability there in combination with superior aesthetics”, says Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group. “The fine filament yarn is comparable to natural silk due to its airy feeling on the skin and the matte finish. It is perfectly suited for very fine fabrics made exclusively from this yarn and as a blending partner with silk, cashmere and wool”, he adds.

“On the occasion of the launch of TENCELTM Luxe filaments, the luxury brands already realized what opportunities they would have by using this yarn made of the renewable raw material wood. For this reason, demand is already so high that we have decided to take an intermediate step to expand capacities before building a large commercial production plant. The decision to construct a new line will serve as the basis for generating a three-fold increase in capacity compared to the previous volume. The additional capacity will be available to customers at the end of next year”, states Stefan Doboczky, Chief Executive Officer and Chairman of the Management Board of the Lenzing Group. “The Lenzing site was selected because research and technological know-how in plant construction are connected in a special way, which will in turn enable us to further develop this special product”, Doboczky adds.

The new capacities will enable Lenzing to more effectively fulfil the needs of customers for TENCELTM Luxe filament yarn than in the past. At the same time, Lenzing will press ahead with technical planning for a large-scale commercial line at the Lenzing site.

This strong level of demand is further evidence of the Lenzing Group’s innovative strength. The yarn is opening up new markets for the company in the eco-couture segment, thus contributing to the successful implementation of the sCore TEN strategy.

TRSA, the global association for the linen, uniform and facility services industry, and the creator and administrator of the Hygienically Clean Certification announced today its 2018 Hygienically Clean Healthcare Advisory Board slate of members.

“The board is responsible for administering, enforcing, and revising TRSA’s Hygienically Clean Healthcare (HCH) Standards. Additional duties include establishing and maintaining criteria and procedures for the certification of healthcare textile processing in commercial, cooperatives, and in-house healthcare laundries and facilities. These subject matter experts will provide guidance regarding best management practices (BMPs), inspections and testing to ensure that the Hygienically Clean Healthcare Certification Program benefits consumers, laundry-processing facilities and textile services customers,” said Joseph Ricci, President and CEO of TRSA.

Members of the newly formed board of directors, who represent the entire industry -- linen, uniform and facility service companies, large central laundries, healthcare linen, uniform and facility services customers of TRSA members, suppliers, and experts from related healthcare and other professional organizations -- will serve a three-year term:

Randy Bartsch
CEO, Ecotex Healthcare Linen Service Inc.
Chairman

Rick Kislia
Chief Operating Officer
Crescent Laundry
Vice Chairman

David J. Stern
President & CEO, Paris Companies
Secretary

Greg Anderson
CEO, Campus Laundry

Angela Becker
Senior Program Leader, Textile Care RD&E, Ecolab

Murray L. Cohen, PhD, MPH, CIH
Owner, Consultants in Disease and Injury Control (CDIC)

Dr. Alexis M. Elward, MD
Pediatric Infectious Disease
Washington University School of Medicine in St. Louis

Eoin Flavin
Director, European Operations, WSI

David F. Goldsmith, MSPH, PhD, LLC
George Washington & Georgetown Universities

James Hall
CEO, Northwest Health Care Linen

Tony Long
VP, Risk Management, Angelica
Lynn A. Moreau, RN, BSN
Clinical Liaison Manager
HandCraft Linen Services

Michael Potack
Chairman, Unitex

Robert Raphael
Co-President
Service Linen Supply Inc.

Liz Remillong
Vice President, Strategic Alliance
Crothall Healthcare

Douglas Waldman
President, Superior Linen Service

Charles Rossmiller
Director Laundry Programs
Textile Sales
Medline Industries, Inc.

Thomas Smith
Director, Safety & Training
Foussard Montague Associates, Inc.

• CHIC Shanghai, March 14-16, 2018
• CHIC March 2018 closes successfully with rise in attendance
• CHIC´s new design: Discovering the young consumer world
• Successful business in all fair segments
• Service point CHIC as international platform for the international fashion trade
• New autumn date for CHIC: September 27-29, 2018

The spring edition of CHIC, taking place from March 14-16, 2018, finished successfully with yet another increase in visitor figures. 1,210 exhibitors from 21 countries and regions presented themselves on 117,200 m² at the National Exhibition & Convention Center in Shanghai. 112,666 visitors of all business channels were registered at the fair, among them leading department stores, shopping malls, multibrand stores, agents, distributors.

Chen Dapeng, President of CHIC and Executive Vice President of China National Garment Association: "The consumers in China develop rapidly, `consumer upgrade´ is the keyword, the Chinese market is consumer oriented, in demand is an individual young style. The offer has to adapt to the needs of this target group, the industry has to become even more innovative and face the technological challenges."

CHIC Shanghai shows that the Chinese market follows the current trends which is also mirrored by its fresh young design and a full visual concept that was developed in cooperation with WGSN. Addressees are the young trendsetting consumers, China´s driving force for the strong growth in retail sales, which increased by 10.2% in 2017 to about 5.7 trillion US$. According to a study by BCG this target group accounts for 65% of consumption increase in China with a predicted growth rate of 11% per year until 2021. The total domestic consumption contributed nearly 60% to the economic expansion of the country in the last year.

Intensive contacts and ordering in all areas of CHIC

The exhibitors of the designer area IMPULSES, one of the core segments at CHIC and occupying the entire North Hall, among them Hua Mu Shen, Shan Zi, Mood for Mode, were very satisfied. In addition to numerous concrete cooperation agreements high value orders were placed as well.

The international exhibitors in the FASHION JOURNEY area came from Brazil, Denmark, Germany, France, China Hong Kong, India, Italy - with 40 exhibitors again the biggest European participation - , Japan, Korea, Peru, Poland, Sweden, Spain, China Taiwan, UK. They expressed their satisfaction with their participations and recognize the potential of the Chinese market. The trade fair objective are contacts, numerous promising cooperation talks took place that need intensive follow-up after the fair. Nevertheless there were also orders placed at the fair. The Polish Investment and Trade Agency participated for the first time in CHIC with its national export program “go-to-brand”. Polish jewellery and kidswear designer brands participated in the program and exhibited at CHIC.

Showing at the leather and fur area HERITAGE the International Fur Federation (IFF) presented itself for the first time with international producers such as the auction houses NAFA and SAGA. Turkey was again represented under the roof of IDMIB / ITKIB by ten companies. For the national participants, grouped in pavilions of the respective Chinese provinces, CHIC is an essential business platform, here they regularly meet their buyers and this time once again registered orders of high sums.

Young brands in the CHIC YOUNG BLOOD area like Monkey King (after the monkey king in the classic Chinese novel The Journey to the West) with manga style shirts or JPE, a trendy street style brand with a traditional Chinese dragon being its mascot, made more than 300 contacts with concrete cooperation intentions at CHIC.

Companies in the segment URBAN VIEW, the menswear area, e.g. RUYI group with more than 30 international fashion brands such as Aquascutum or Sandro; GSON, a menswear line of SEMIR group or ManCode, a new exhibitor at CHIC, reported hundreds of cooperation inquiries and direct deals at the fair.

A sensation in the accessories segment SECRET STARS was created amongst others by the German brand LEONARDO. Large groups of visitors interested in the jewellery collection gathered at the booth. The fair participation beat the company´s expectations by far.

The young generation is the engine for fashion consumption in China, a fact also recognized by the management of the SEMIR group that presented product novelties and its service offer with its kidswear brand BALABALA in the KID´S PARADISE at CHIC. New technologies were shown on more than 500 m² by the HODO group and its "unstaffed shops", "smart fitting rooms", "magic dressing mirrors". Further innovations were "cloud shelves" and "big screen data".

Service platform CHIC

The intensively expanded visitor management, online and offline, was a central aspect of the fair. Online via WeChat and the official CHIC APP more than 200,000 visitor request for specific product groups were made, exhibitors uploaded more than 700,000 pieces of product information. Active exchange was initiated by the Buyer´s Talk on the second fair day, dealing with the development of the buying systems of department stores and shopping malls, trend information was given at CHIC Buyer´s Theme Salon also taking place on day 2. The VIP Buyer´s Meeting brought international brands and interested agents and distributors together - a service that the organizer will expand in the future. “We visit CHIC Shanghai every time, for us it´s a very important platform for trend information and also to find European brands that we can introduce to the Chinese market”, says Wen Liu, CEO Jesery from Wuhan, representative of Canadian designer brand JAC. The management of Mallstyle Investment (Shanghai), with e.g. Italian luxury brands in its portfolio, directly got in touch with German and Italian brands at CHIC after the meeting.

The event schedule of CHIC offers a broad seminar and workshop programme with its CHIC TALK, from trend information to retail solutions to buyer meetings, the show programme CHIC SHOWS staged fashion presentations, of which especially the IMPULSES and OVERSEAS´ JOINT FASHION SHOWS attracted the visitors´ attention. CHIC Shanghai is designed as a global platform for the fashion industry and fashion trade and integrates all resources that are relevant to a successful development of the fashion business in China.

CHIC Shanghai changes autumn date to September

CHIC Shanghai changes together with Intertextile Shanghai, PH Value and Yarn Expo the date for its autumn edition to September. The next fair will be held from September 27-29, 2018 at the National Exhibition & Convention Center in Shanghai.

• Connect people, data and processes with Lectra’s latest solutions to power up design and development teams

Paris – Lectra, the technological partner for companies using fabrics and leather, introduces collaborative solutions specifically developed for design and product development teams, enabling fashion companies to affront tighter deadlines and handle wider product mixes with speed and serenity.

With the rise of e-commerce, digitally dependent consumers expect personalized, innovative fashion delivered to their doorstep at the click of a mouse.

Fashion companies are struggling to keep up with consumer demands and looking for new ways to speed up design and development without compromising quality. Design teams work faster than ever to deliver fresh, eye-catching collections. Product development teams rush to transform new designs into consumer-ready products. Given the accelerated pace of the fashion marketplace, information sharing has become vital for these teams.

Lectra has developed two new solutions to fulfill the specific needs of these teams, Lectra Connected Design and Lectra Connected Development. These solutions deliver collaborative environments that integrate business applications to aggregate, standardize and store data from all design and product development stages. These innovative solutions make every-day working life less stressful by allowing criteria-based searches, inciting users to capitalize on data links, and providing them with innovative tools and services to speed up their processes.

Lectra Connected Design facilitates collaboration between textile and fashion designers, colorists, graphic designers, technical designers and their managers by providing design teams with a connected environment. Team members can access the platform via their Lectra Kaledo® design software and Adobe® Creative Cloud, share inspiration and review collections together or upload inspirations via dedicated mobile apps. This solution gives users the visibility needed to streamline, automate and monitor the entire design process to ensure that they remain creative under severe time constraints.

In the same way, Lectra Connected Development connects patternmakers, graders, technical design teams, managers, cost and margin specialists, marker makers and sample teams through data. It allows team members to connect through Lectra Modaris® 2D and 3D patternmaking software and Lectra Diamino® Fashion marker-making software. Thanks to the wide range of standard libraries and mobile applications provided, teams will improve the efficiency of technical specifications creation. The automation of business processes and real-time communication allow product development teams to avoid errors and deliver the right product quality and fit.

“We recognize first and foremost that today’s fashion industry professionals need to feel well-equipped and at ease in order to perform well under tight deadlines,” explains Céline Choussy Bedouet, Chief Marketing and Communications Officer, Lectra. “We are confident that by introducing a new and easy way of collaborating through sound data management, both offers will help design and product development teams work faster and more easily to build quality into the products they design and develop. That way, they can reach their fullest potential as key contributors to their companies’ success.”

• Revenue increased by 5.9 percent to EUR 2.26 bn
• EBITDA up 17.3 percent to EUR 502.5 mn
• Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
• New brand strategy to generate a strong message to consumers
• Limited visibility for coming quarters

In 2017, the Lenzing Group reports its best financial performance ever with record revenue and earnings due to a better product mix and higher selling prices in combination with a generally favorable market environment.

Group revenue grew by 5.9 percent in the 2017 financial year to EUR 2.26 bn (2016: EUR 2.13 bn). Group earnings before interest, tax, depreciation and amortization (EBITDA) improved by 17.3 percent to EUR 502.5 mn (2016: EUR 428.3 mn). The corresponding EBITDA margin rose to 22.2 percent (2016: 20.1 percent). Earnings before interest and tax (EBIT) increased by 25.2 percent to EUR 371 mn, resulting in a higher EBIT margin of 16.4 percent (2016: 13.9 percent). The net profit for the year totaled EUR 281.7 mn, a rise of 23 percent from the prior-year figure of EUR 229.1 mn. Earnings per share in the 2017 financial year amounted to EUR 10.47 (2016: EUR 8.48).

The Management Board and the Supervisory Board will propose at the upcoming Annual General Meeting a stable dividend of EUR 3.00 per share plus an increased special dividend of EUR 2.00 per share (2016: EUR 1.20 per share). In total, the dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of EUR 132.75 mn.

“The Lenzing Group looks back at a very successful year 2017. We continued to implement our corporate strategy sCore TEN with great discipline and focus on our investment projects and successfully captured value in a positive market environment. Our commitment to innovation and customer centricity was underpinned by the opening of an application innovation center in Hong Kong and the creation of the new sales and marketing office in Turkey. In line with sCore TEN we decided to revamp our brand architecture and image to sharpen Lenzing’s corporate and product profiles for customers and consumers. We want to put a stronger emphasis on our ambition to make the textile and nonwoven market more sustainable”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

“We are very positive about our chosen strategy as it will help us to be more resilient as we expect more headwinds in the upcoming quarters”, he adds.

The acquisition is the fifth strategic deal finalized by Imprima Spa , holding controlled by the Italian private equity fund Wisequity IV.

IMPRIMA S.p.A., the holding company of the multinational group dedicated to textile printing and finishing, announces the acquisition of City Prints and the twin company Premier Fabrics, both American companies specialised in printed textiles. 

Imprima, controlled by Wise SGR through the Italian private equity fund Wisequity, now strengthens its strategic positioning, consolidating its global presence as a leading player in the field of printing and textile finishing for international retailers and fashion brands.

City Prints and Premier Fabrics, founded in 1997 and headquartered in New York and Los Angeles, are specialized in textile printing for the programmed collection market. The companies supply printed fabrics, based on proprietary design, to major American retailers such as Walmart, Target and Macy's, to  fashion brands such as Ralph Lauren, Calvin Klein and Tommy Hilfiger, and to online retailers such as Amazon. The companies serve retailers and brands through leading private label intermediaries, currently sourcing prints and garments mainly from China.  

As in the case of the previous acquisitions, the brothers Jason and Ryan Borg, co-founders of City Prints and Premier Fabrics, will maintain a leadership role in the management of the companies and become shareholders of IMPRIMA. 

 "Our entry into the IMPRIMA group is an excellent opportunity to consolidate and increase our commercial positioning in the market, through the introduction of IMPRIMA Group’s brands in the US market and the opening of a digital production facility within the US territory, relying on the technology know-how in digital printing and the financial support that IMPRIMA provides", said Jason and Ryan Borg co-owners of City Prints and Premier Fabrics, which currently show a consolidated turnover of over 23 million dollars.

“With this acquisition, IMPRIMA deals with the US market with the goal of becoming the first textile converter with full digital printing capability in this local market.  The current deep crisis of American apparel retailers is pushing the industry to reshape its current supply chain strategy, mainly based on sourcing from Far East, towards a European-like fast fashion model. IMPRIMA, through City Prints and Premier Fabrics, will allow local retailers to leverage the "Made in USA" banner to deliver a great creative experience through a local, reliable partner.", said President Valentina Franceschini, and Executive V.P. Gianluca Boni.

This acquisition of the US companies follows the recent acquisition of the Italian print converters SET, Guarisco and B-Blossom and of the German print converter KBC.  

Première Vision has once again been chosen by Archroma to present its developments combining creativity, technology, and sustainable approach. Color Atlas - Archroma's innovative color system dedicated to designers, brands, retailers, and the whole industry - confirms itself as the ideal tool to bring fashion inspiration to life, enhancing functionality in all stages of the process

Archroma, a global leader in color and specialty chemicals, will showcase the latest in its advanced color-management solutions at Première Vision Paris, Hall 6 Booth 6U2. The Color Atlas system will also be featured in MintModa’s SS19 seasonal inspirations, presented on February 14, 2018 at Hall 5, Room 504, at 3pm and 4pm.

Color Atlas: a game-changing system for fashion design

How many shades can creativity have? The Color Atlas by Archroma®, through no less than 4,320 hues and color swatches, truly gives shape to any imagination. This is Archroma Color Management’s groundbreaking platform specially devised to address the needs of designers, brands, retailers, and manufacturers, enhancing creative possibilities for the industry as well as manageability and time to market through key complementary tools:

• The Color Atlas Library is the six-volume physical reference to the 4,320 color swatches and cotton poplin samples, secured yet easily removable and absolutely intuitive to be browsed thanks to the accordion-fold design of the catalogues. A compact edition of the Color Atlas is also available, including the very same color variety while being slimmed down from six to two volumes for increased portability.
• Color Atlas Online is the mobile-friendly designer’s companion to find the perfect color matching while on-the-go or in the office. Through this feature, it’s possible to capture an inspiring image using a smartphone and immediately identify the closest Color Atlas shade palette, with the possibility to purchase a color sample instantly. A new patent-pending technology powered by NFC, exclusively introduced by Archroma, also adds swatch-specific information to each Engineered Color Standard, giving retailers, brands, and mills instant access to dye recipes and more color information than ever. The online system also allows to create personal special collections of colors or products that can also be shared, both internally and with suppliers.

The colors of SS19 trends by MintModa, in collaboration with Archroma

During Première Vision, SS19 seasonal inspirations by MintModa will also highlight the main trends for the new collections, with color ranges referenced using Color Atlas by Archroma®.
On February 14, both at 3pm and 4pm at Hall 5, Room 504, Sharon Graubard (Founder/Creative Director of MintModa) will introduce a highly visual and emotive presentation that captures the zeitgeist with four compelling SS19 color and style narratives. Each design story is told with evocative, style-centric imagery from global runway and street, consumer profiles, beauty and wellness, art, architecture, and other culturally impactful touchpoints. This presentation identifies emerging influences relevant to all design industries.
A limited-edition MintModa x Archroma SS19 color card will be distributed to all attendees.

Sanitized®Odoractiv 10 with patented, dual-action technology

SANITIZED AG presents a new unique dimension to odor-management for functional polyester textiles. The newly developed wash-resistant Sanitized®Odoractiv 10 has a dual-action effect: on the one hand it prevents the bacteria from docking on the textile, and on the other, it adsorbs odors whilst the garment is being worn. The underlying technology that has been further developed was awarded the Swiss Technology Award. Goodbye permastink!

Manufacturers of functional polyester textiles from all over the world face the same challenge: freshly washed garments develop an unpleasant odor even after a short wearing period. The cause of this undesirable effect is not the human perspiration itself, but the bacteria that break down the perspiration. This process of decomposition generates the characteristic sweet, pungent smell. Once the bacteria, or the odor molecules, have penetrated into the surface of the polyester textile, they remain there permanently. Machine wash cycles and special detergents will never completely eliminate them. The bacterial colonization produces a biofilm on the polyester, which not only causes unpleasant odors, but also has a negative impact on the properties of the material.

Surface modulation with anti-adhesive properties
This is exactly where the new, dual-action technology from SANITZED AG comes into play: the surface of the textile is "coated" with Sanitized®Odoractiv 10 in the padding process. This creates a protective film on the surface of the textile. The bacteria use this anti-adhesive protective film as the basis for latching onto the garment. The bacteria can therefore be completely washed out in a normal wash cycle, consequently preventing any biofilm from forming. An anti-adhesion test method was developed in cooperation with EMPA to prove this Wash Effect.

The second advantage: Sanitized®Odoractiv 10 has a high adsorbing effect. Odors are "trapped" and removed during a normal wash cycle. The new product is the result of a technology that has been further developed and was awarded the Swiss Technology Award. The odor adsorption is identified using GC-MS.

As the Product Manager at SANITIZED AG, Urs Zihlmann, succinctly puts it: "Sanitized®Odoractiv 10 marks the end of permastink in polyester textiles." Sanitized®Odoractiv 10 can be combined with other Sanitized®products, in particular with products based on zinc pyrithione. The treatment does not influence the feel of the final treated textile.

Wash-resistant, sustainable and still "no nano"
The odor-reducing function is clearly still going strong even after 50 wash cycles. This is even the case if garments are washed at 30°C, either by hand or in the machine, meaning consumers save on water and energy, not to mention that the piece of clothing will look great for longer.

As with all its other products, SANITZED AG does not use any nano technology. The Hohenstein Institute has awarded the company the rating Skin Friendly, the bluesign®registration is underway. The product also bears the label Eco Passport by OEKO-TEX®.

"The unique, dual Odor Control Function of Sanitized®Odoractiv 10 enjoys a unique position in the market and it furthermore fulfills two market requirements: the prevention of permastink and the minimization of odor intensity during wear. Almost all manufacturers of functional polyester textiles are confronted with this problem," commented Urs Zihlmann. "The new technology creates tangible added value for consumers. This is a competitive differentiating
advantage for global marketing."

As with all other products, the service provided by SANITIZED AG includes technological advice before and during production, in the definition of the verified efficacy and in the use of the Sanitized®Ingredient Brand for promotional purposes.

After a successful start to the trade show season for Spring/Summer 2019 at View in Munich this December, the company, which is set to exit insolvency proceedings in spring 2018, is presenting its new collection to the industry. The management team is banking on continuity.

As in previous years, Union Knopf Menswear will be present at all relevant trade shows in Europe: at the Textile Fashion Show in London from 10 to 11 January 2018 at The Business Design Centre, London; at Preview Fabrics & Accessories from 24 to 25 January at Showroom, Nacka strand, Stockholm; at Munich Fabric Start from 30 January to 01 February 2018 at MOC, Lilienthalallee 40 in Munich (Stand H1 A02) as well as at the end-of-season Première Vision from 13 to 15 February 2018 (Stand 4F03/4G04) at the Parc des Expositions in Paris.

Union Knopf Menswear expects to exit insolvency proceedings strengthened and clearly positioned and sincerely appreciates its customers and their continued loyalty through uncertain times.

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.