From the Sector

• Product innovations, thought-leadership and the new certifications.
• A set of strategic green actions, aimed at increasing transparency and traceability in the company and throughout the industry.

Garmon Chemicals relaunches its commitment to an increasingly green and transparent use of chemicals. The new goal for the company, which in January 2018 has become part of the US Kemin Industries group, is to embark on an actual journey towards sustainability, integrating product innovation with increasingly distinctive strategic actions.

There are three main innovations spearheading Garmon’s commitment. The partnership with the ground-breaking project Alliance for Responsible Denim in the exclusive workshop “Doctor Visits”, held in London June 12. The new ISO 14001:2015 and ISO 9001:2015 process certifications.  The innovative “Stretch Care” collection which features a whole package of eco-compatible solutions, specific for finishing in the world of stretch fabrics.

In partnership with Alliance for Responsible Denim for the “Doctor Visits” workshop
On June 12, in London, the stage was set for “Doctor Visits” an event-workshop organized by Alliance for Responsible Denim focusing on the dissemination and promotion of best practices for sustainable manufacturing. The meeting was dedicated to six selected denim brands, which had a chance to meet the greatest experts in the finishing of indigo fabric.

Garmon Chemicals made available its inimitable experience as technical partner for finishing, as well as conducting team sessions with the Jeanologia staff, a leading company for eco-sustainable technological solutions. The six brands brought the finishing recipes of their Never out of Stock styles, to receive support and recommendations from the experts about the most innovative alternatives in terms of sustainability. The goal was to show the brands new possibilities to migrate towards more responsible finishing, improving their recipes as well. This was a way to reaffirm how ecodriven innovations can also increase finished product quality.
 
The new ISO certifications: increasingly high standards
Garmon Chemicals is also pleased to announce that it has been awarded two important certifications for compliance with ISO international standards as regards safety, reliability and quality. Reference is made here to ISO 9001:2015, a certification which sets international criteria for quality management systems, and most notably, to ISO 14001:2015, a standard acknowledged worldwide stipulating all requirements for an environmental management system. This certification, in particular, helps organizations improve their environmental management performance levels through a more efficient use of resources as well as by reducing production waste. Indeed ISO 14001:2015 mandates that an organization should take into account all aspects relevant to its core business. Amongst assessed parameters there are: air pollution, managing water resources and discharge, waste management, soil contamination, mitigation and adjustment to climate change, as well as an efficient use of resources.

These certifications, once again, provide evidence of the constant commitment on the part of Garmon for an increasingly sustainable use of chemicals, aimed at truly reducing its impact on humans and the environment.
    
A commitment which comes to life in the new “Stretch Care” collection
Introduced on the occasion of the Kingpins exhibition in April 2018, the new “Stretch Care” collection is a line of products completely dedicated to enhancing the qualities and performance of stretch fabrics. The special formulations developed for this line, with their cutting-edge raw materials, are especially suited for treatments with a high eco-compatibility rate; at the same time they optimize the production process. It is worth mentioning in particular the innovative Geopower NPS (= no pumice stone), a compound which helps eliminate pumice stone from denim washings, thus reducing environmental costs and impacts. Another ground-breaking product is Avol Oxy White, the innovative bleaching agent designed to achieve localized effects on denim. Thanks to its composition it is an ecologically advanced product whose environmental impact has been reduced to a minimum, a real challenge to the use of potassium permanganate which tends to be pervasively used as part of industrial processes.

“We firmly believe in developing sustainable chemistry” – concludes Donald Mulazzani, Marketing and Business Development Director at Garmon Chemicals – “not only in terms of product, but also as evidence of our responsible approach on several levels. In this way, we want to contribute to disseminating what will need to be the best practices in the future, for the whole industry”.

Trevira, one of the market leaders in polyester yarn manufacture, and the development services company imat-uve have together achieved a milestone in textiles design: the use of 3D flat knitting technology for automotive interiors. In a jointly developed process that unites innovative yarn technologies with cutting-edge connection and finishing techniques, Trevira and imat-uve have found a way of producing anatomically contoured seat covers and trim components for vehicle interiors. Why is this important? The answer lies in the way it's done. Because the technology uses just one knitting process rather than several, manufacturers can reduce their production and materials costs, as it's no longer necessary to cut and assemble the fabrics. But the new invention is not just cost-effective – the flat knitting technique means that it's now possible to personalise design and function to a much greater degree, representing another important step in the direction of on-demand production.

Trevira and imat-uve are the first companies to develop such a sophisticated application of the knitting process for use in vehicles, thanks to imat-uve’s innovative processing and finishing technique which deploys a low-melt yarn specifically developed by Trevira. The collaboration has resulted in a high-performing knitted product which satisfies even the most demanding criteria in terms of quality and comfort. The VDA 230-210 standard velcro test carried out by imat's testing laboratory found that the product was extremely abrasion resistant. The 3D flat knitting technology even means that areas known to be vulnerable, such as the seams on seat covers, can be strengthened in the course of the same single knitting process. Another benefit of the technology is its contribution to sustainable manufacturing. Not only does it work on the zero waste principle, but the knitted fabric itself is manufactured entirely from yarn made from PES recyclates.

Thomas Rademacher, Head of Development at Trevira, explains why the collaboration was so successful. "The development company imat-uve came up with a new breakthrough technology, while here at Trevira, we contributed our own recycled yarns and a new low-melt yarn we've developed based on synthetic fibres, which provides a stabilising effect. Together we have created a highly sought-after, top quality product for automotive interiors. Flat knitting will now be the go-to technology for vehicle interiors – in the future, it will be impossible to imagine life without it."

Hans Peter Schlegelmilch, imat-uve’s CEO, pointed out the especial benefits of the new technology for vehicle manufacturers and their suppliers. "The 3D flat knitting technology doesn't just make it possible to save time and money on production. It also opens up a whole new world of personalisation for end consumers. We are extremely pleased that with Trevira as our partner, we have been able to take this significant step towards the future of automotive interiors."

European cybersecurity company Nixu announced that it has signed a contract for cybersecurity cooperation with its long-term, globally operating industrial client. The ongoing contract now signed between the parties has an estimated total value of 3,9 million euros during three years.

The contract includes a large selection of Nixu’s holistic cybersecurity services. A new area in the contract is the development of continuous cybersecurity monitoring of Industrial IoT environment. The monitoring also covers the client’s traditional IT systems.

Petri Kairinen, CEO of Nixu: “I am pleased that our cooperation continues to grow; it is our strategic goal to provide reliable and comprehensive cybersecurity partnership to our customers. The services we deliver also relate to one of our main focus areas, industrial IoT. The significance of industrial IoT will only grow with the further digitalization of society and business. Nixu is excited to be involved in building cybersecurity for the Internet of Things together with our clients and enabling new business opportunities in the future."

India is a very important market for the German textile machinery industry, with an export of more than €255 million (+ 8 %) in 2017. Many German machinery builders have longstanding relations with Indian customers and quite a number of them also provide production plants and training centres in India. Not surprisingly, about 370 decision-makers and experts from the textile and nonwoven related industry attended the VDMA conference and B2B event called “German Technology meets Indian Textiles and Nonwovens” in Mumbai on 15-16 May 2018 (www.germantech-indiantextile.de).

According to a survey, both the event and German textile machinery engineering received the highest marks among the visitors. About 57 % of the visitors stated very good and 38 % good experience with machines and components from German suppliers. The performance and service promise as well as the high-quality standards have made German machine suppliers as most reliable partners in India and other countries. This positive result has by far not been reached by any other manufacturing nation from Europe or Asia. Asked for future processes, investments in technical textiles and/or nonwoven production seem to be the most favorite sectors in India. Around 74 % of the visitors plan to expand their production capacities with new machines and components whereas 26 % intend to replace old machinery by new machines and components. High productivity, after-sales service, end-product quality, low operating and acquisition costs are the decisive machine procurement criteria in this order. The investments plans are based on a positive business and investment outlook in India. 45 % of the visitors surveyed plan to invest more than 10 % within the next 12 months and 30 % up to 10 %. 25 % of the visitors expect a sales increase by more than 10 % for the next 12 months and 60 % anticipate a sales growth of up to 10%.

Considering this positive business climate and the high interest from the Indian industry, the 32 well-known VDMA members participated in the conference have good chances to offer the right technologies and to place new orders. The presented technology topics along the entire textile value chain will help the Indian industry to fulfill their expansion plans and to meet the challenges such as rising salary costs and shortage of labor in industrial regions. The major cutting-edge topics of the conference program were as follows:

•    Higher profits throughout the entire textile value chain
•    Energy, material, water and dyestuff savings for an environmentally friendly production
•    New applications such as technical textiles, nonwovens (e. g. hygiene products) or home textiles (e. g. terry towels)
•    Automation, industry 4.0, digital communication and smart factory solutions
•    Quality improvements e. g. with measurement and control systems
•    Lower investment costs in spinning preparation with integrated draw frames
•    New technologies to combine spinning and knitting
•    Smart textiles and added value products e. g. with embroidery machines

Whereas the event on 15-16 May 2018 focused on customers, a training session at the prestigious Veermata Jijabai Technological Institute VJTI in Mumbai on 17 May 2018 was addressed to future engineers. More than 220 textile manufacturing and mechanical engineering students followed the technical presentations. The VDMA's contribution to improve the education of future customers and partners was very much appreciated.

•    New, sustainable, ready-to-use solutions for plastic auto parts to support China’s electric vehicle boom
•    Stronger, softer nylon polyamide fibers plus fast processing for clothes, carpets & industrial applications
•    AddWorks blends lower total cost of ownership & reduce production complexity while enhancing performance

Muttenz, May 3, 2018 – Clariant, a world leader in specialty chemicals, introduced new additive solutions for plastics materials at Chinaplas 2018.

“Our innovations focus on higher performance at better convenience for a sustainable future,” says Stephan Lynen, Head of Clariant BU Additives. “At Chinaplas 2018 we demonstrated our technical and market capabilities around the theme of e-mobility. The immense changes in mobility call for lighter, safer and smarter vehicles. We offer new additive solutions, such as AddWorks, and technical capabilities to respond to this demand. We are accompanying this with a series of investments such as new production facilities in China.”

Clariant’s new AddWorks solutions – AddWorksATR 146, AddWorks LXR 568 and AddWorks TFB 117 – are specifically aimed at improving performance and efficiency of plastics materials for compounders, polymer and fiber producers in China’s major plastics manufacturing segments. All three solutions are part of the globally available portfolio.

The full AddWorks portfolio consists of differentiated market-specific synergistic additive blends that streamline production processes and create value for customers while enhancing performance. Each solution is customized to specific market needs, underlined by broader considerations such as emission reduction, and less energy and resource usage.

Sustainability and performance for the world’s largest auto market
To support the significant investment in electric vehicles in China, Clariant launched two additive innovations that improve the lifetime of lightweight automotive parts and under-the-hood applications and reduce VOC emissions in an easy to use single solution.

AddWorks ATR 146 is a new low dosage, sulfur-free heat and light stabilizer for filled polypropylene (TPO) compounds used in interior applications. Its exceptional heat and light stability and long term color retention offers the automotive industry unmatched performance. It shows no surface cracking after 700 hours at 150°C, which enables dashboards, instrument panels, door panels and pillars to maintain their aesthetics longer than with traditional stabilizers. It also contributes to reducing blooming and VOC emissions, supporting the common effort to make automotive interiors healthier and odorless.

AddWorks LXR 568 is a high performance processing stabilizer that helps to prevent plastic resins, especially polyolefins, from degradation at high processing temperatures. For the automotive industry, this reduces the tendency of injection molded polypropylene interior car parts to turn brittle during heat exposure, enabling them to maintain a defect-free surface. It also has low migration and low fogging that support healthier in-cab environments.

AddWorks LXR 568 combines outstanding color and melt flow protection with good resistance to hydrolysis and high thermal stability. This makes it ideal for interior and under-the-hood powertrains and wider application areas such as packaging films. It is available in free-flowing pills and micro-pills which are easy and convenient to use.

Softer, stronger polyamide fibers for clothes, carpets and industrial applications
Within the next three years, China is expected to account for 40% of the world’s nylon production and more than 30% of the nylon resin consumed globally[1]. The new AddWorks TFB 117 offers a number of benefits to help stabilize and smoothen fiber production processes, protect color, and improve heat stability and mechanical properties of fibers. AddWorks TFB 117 ensures smooth spinnability with less filaments breakage, even at low processing temperatures and at high speed spinning up to 5,500 m/min.

Martin P. J. John, Head of BL Performance Additives at Clariant, comments: “AddWorks solutions are an ideal fit with China’s priority of achieving more sustainable production. They save time and reduce complexity along the production process, with easy to use formats that reduce health risk and chemical waste. Our new state-of-the-art production facility in Zhenjiang, China, which opens later this year, is dedicated to the manufacturing of AddWorks to deliver innovative solutions tailored to the needs of the market. Made for China in China.

In addition to AddWorks, Clariant presented Exolit® OP 1400, a highly stable non-halogenated flame retardant enhancing safety during the charging process. It also provides outstanding thermal stability for under the hood applications. Exolit OP 1400 has been awarded the Clariant EcoTain® label for outstanding sustainability and performance.  

Clariant also introduced two ranges of performance waxes that smoothen the production of automotive plastics for under the hood applications, Licowax® and Licocare® RBW. The recently launched Licocare RBW is a series of multi-purpose additives based on crude rice bran wax. They offer better shaping flexibility, better mechanical properties and enhanced surface finish, which results in a reduced rejection rate and a more effective dosage.

At Kingpins Amsterdam, RUDOLF GROUP launches a selection of chemical auxiliaries for fashion and function as well their new HUB 1922.
The RUDOLF GROUP, not completely new to garment and denim finishing, decides to take the first steps of what will be a long and exciting journey in the field. In order to shorten the distance with both manufacturers and apparel brands and retailers it deploys two synergic initiatives:

• A refined selection of chemicals auxiliaries targeting garment finishing and delivering, in addition to current aesthetics, sophisticated functionalities that take denim to the next level in terms of both performance and enhanced quality.
• The launch of a new project that, combining German engineering and Italian style, provides solutions at the crossroad of fashion and utilitarian functionality. The project, called HUB 1922, introduces elements of unorthodox diversity and fosters collaborative environments that can be truly disruptive.

The word HUB is evocative of the main part of something where there is most activity, whereas the number, 1922, is the year of foundation of the RUDOLF GROUP and therefore symbol of heritage, tradition and significant experience. Ultimately, HUB 1922 wants to be the unmatched one-stop shopping for fashion and function, innovation and creativity in garment processing. A hub that enables continuous, synergetic, and powerful collaboration with brands and retailers to deliver disruptive innovations in the global markets.

It introduces functional chemistry in an universe that is almost entirely driven by aesthetics and the extension to other materials and product categories (such as outdoor apparel and performance wear), of knowledge and techniques developed for denim over the past 50 years. Very aware of its status of rookie and yet very determined, the project HUB 1922 begins exploring through concepts and values rooted in deep scientific knowledge, true responsibility, technical innovation and fresh creativity.
At Kingpins Amsterdam, HUB 1922 will present 3 concepts rooted in RUDOLF’s sophisticated and conscious chemistry:

• ODYSSEY: a voyage through textures and innovation, softness, comfort and signature handfeels.
• SHELTER: performance inspired by natural models for urban protection and for much reduced domestic washing.
• MEMOFLEX: A modern-day miracle preventing denim from sagging and bagging. A truly denim Botox that shows improved quality on many stretch fabrics.

Since when it was founded, almost 100 years ago, RUDOLF GROUP’s secret of success is being big enough to matter, small enough to care. Captured in this definition are an obvious desire to play a meaningful role in the textile industry and an equally palpable vocation to customer service.

Alberto de Conti, Head of Rudolf Fashion Division: “Every generation has their time to make a mark on the world. Considering the environmental emergencies in garment production and the lack of real innovation on the retail shelves, for the current generation of companies active in garment finishing that time is now.”

RUDOLF GROUP acknowledges therefore that there is an additional opportunity to responsibly further redefine the future and turns their sizeable R&D power towards refining their approach to what is fashion quintessential staple: garment and denim finishing. Through a renewed, highly responsible involvement in garment finishing and with the introduction of HUB 1922, the RUDOLF GROUP wants to send out a message of true optimism. It is about showing the entire industry that there is a blank canvas ahead and tangible difference can be made.

• Deep Insights into the Multifaceted World of Cotton
• Quality, Innovation and Digitalisation are Crucial

From the 21st to the 23rd of March, the international cotton industry came together in the historic Bremen Town Hall, under the motto "Cotton Insights". More than 500 participants from almost 40 countries came to exchange views on the latest trends in the natural raw material as part of the conference organised by the Bremen Cotton Exchange in cooperation with the Fibre Institute Bremen. The 34th International Cotton Conference provided a varied, in-depth programme which addressed the current and burning issues within the industry.

Summarising his visit to the conference, Kai Hughes, Executive Director of the International Cotton Advisory Committee (ICAC) in Washington said “The Bremen Cotton Conference is unique because it brings the diverse world of cotton together in one place. It is always a great opportunity to learn about the latest innovations, talk to cotton merchants and get an overview of the industry".

Sustainability and Cotton
This year, the conference developed into a whole week of diverse events around the entire cotton supply chain. With the “SUSTAIN” event, which was organised in cooperation with the Weser-Kurier newspaper, it was possible to build a bridge between the issue of sustainability and the end consumer.
With the focus on Africa, the emerging continent, which also has a special significance for cotton, became the centre of attention.

In his opening speech, Henning Hammer, President of the Bremen Cotton Exchange, made it clear that sustainability is also of great importance during the Cotton Conference: "The three pillars of sustainability – the environment, the economy and social issues – were already playing a role in the cotton industry when the word sustainability was far from being on everyone's lips.
Many changes that are being demanded in the sense of responsible agriculture and responsible trade take their time, many are already in the starting blocks and a lot already exists. We have a very alert, active agricultural research worldwide."

The Keynotes
The keynote session, moderated by the journalist Lisa Boekhoff from the newspaper Weser-Kurier, gave participants an overview, with an informative analysis of the current cotton situation. Kai Hughes, executive director of ICAC, emphasised in his keynote address the need to provide credible facts and figures which should be the basis for the entire supply chain. The marketing of cotton and changing consumer habits in a globalised and digitalised world were the subject of lectures by Mark Messura, Cotton Incorporated and Robert Antoshak, Olah Inc. Eugen Weinberg and Michael Alt from Commerzbank took a look at the raw material from a stock market perspective.

Traceability and Digitalisation
Digitalisation is also a cross-cutting issue that runs through the entire supply chain of the cotton industry. In his opening speech, Prof. Axel S. Hermann, Head of the Fibre Institute Bremen, emphasised the importance of digitalisation for the industry. “It enables new approaches in cotton cultivation and textile processing, but also influences consumer behaviour and thus the necessary changes in the textile industry.” The focus is on the status quo of the implementation, as well as the opportunities and risks of digitally controlled, vertically integrated procurement and sales processes and the associated challenges at retail level.

Another current topic is traceability, which is also closely linked to sustainability. More and more buyers want to know whether their suppliers are meeting the promised sustainability criteria for their products, also textile products. Consequently, the conference presented various techniques for testing the authenticity of a cotton provided in the finished textile, such as DNA testing, fingerprint analysis technique, marker methods and block-chain processes.

Cotton Quality
In addition to current subjects such as digitalisation and traceability, questions of cotton quality have traditionally been an essential element of the Cotton Conference, which was further reinforced this year with the "Spinners Seminar". The spinning mill seminar, which was carried out by the Cotton Exchange and the Fibre Institute in cooperation with the ITMF and IVGT associations, far exceeded expectations.

More than 70 participants discussed the handling of impurities in supplied cotton in the manufacturing process.
In addition, in a high-level expert session, there was an exchange of the latest research results which determine the future of cotton production and the processing of cotton into innovative products.

• JEC World 2018, closes its doors on March 8 with a record increase in attendance resuming 3 days of vibrant networking and knowledge sharing.

The event confirms its leading position of JEC Group as number one organization for the promotion and development of the composites industry. Indeed the show welcomed more than 1,300 exhibitors from every continents and counted 42,445 professional visits from 115 countries. “The ability of JEC Group to gather the whole composites Industry under one roof over 3 days lies in the fact that we always initiate new precursory programs to the service of composites professionals.” says Ms. Frédérique Mutel, JEC Group President & CEO. “This year we initiated new programs, for instance the Composite Challenge allowing 10 PhD students to pitch their thesis in front of the industry, thus facilitating connections between students and industrialists. In the same spirit, we increased in power our Start Up Booster and Innovation Award Programs to accelerate relations between young or innovative companies with investors or established enterprises. We also introduced one new planet called “Make it Real” along with the Aero, Auto and Construction planets. In this planet, we could discover astonishing futuristic products for example the Aeromobil, a flying car that would revolutionize urban transportation in the near future,“ she adds. “We launched our new Book on Natural Fibers: Flax and Hemp. We had strong communications on Composites Environmental Input and Recycling.”

The event was the first event to promote and host the new “French Fab”, a French government initiative to internationally promote the French Industry and Manufacture. Also, JEC World welcomed the French Secretary of State to the Minister of Economy and Finance Ms. Delphine Gény-Stephann, visit that demonstrates the growing role of composites in the industry.

Inspiring Keynotes to foster composites disruption

Dirk Ahlborn,CEO of Hyperloop opened the Startup Booster ceremony by supporting the spirit of ingenuity in the Industry. Dayton Horvath, industry expert and consultant in additive manufacturing presented his vision of how to apply artificial intelligence to composite Materials and Manufacturing. Finally, Yves Rossy, the “jetman” using the latest carbon-fiber wings for flight introduced the JEC Innovation awards ceremony, motivating the audience to pursue their dreams and explaining how composites could made his dreams come true.

The "Public Choice” Awards Winners

A first at the show this year was the introduction of the public votes to elect their favorite projects among two JEC programs promoting innovation. “The goal to create the “public choice awards” was to involve and embark our community to make their innovation loud. Our vision at JEC is to demonstrate and to make understand towards a broader scope the vast range of possibilities that composite materials offer.”
comments Ms. Anne-Manuèle Hébert, Director for JEC World and European Events for JEC Group.

Public Choice Award for Startup  Booster: Inca-Fiber (Germany) with 62.36% of the 2,221 votes
Public Choice Award for JEC Innovation Awards: Infusion technology for an aircraft wing by AeroComposit JSC (Russia) gaining 20.96% of the 4,126 votes.

Baldwin Technology Company Inc.’s exclusive and innovative Precision Application System—which realizes substantial savings of water, chemistry and energy while increasing productivity—was designed with companies like HanesBrands in mind.

HanesBrands—whose venerable apparel lines include Hanes, Champion, Playtex, Bali and Maidenform, to name a few—has set significant environmental stewardship goals to reduce energy consumption and water use. The company’s recent investment in Baldwin’s Precision Application Systems, with a textile finishing technology that allows for accurate and controlled placement and therefore, reduced use of end-of-line chemicals and water, will help HanesBrands achieve its environmental sustainability goals. Additionally, Baldwin’s groundbreaking application system improves output through greater flexibility, fewer production steps and increased uptime.

Mike Abbott, HanesBrands Global Director of Research and Innovation, said: “Baldwin fulfilled our requirements to provide a solution that optimizes our productivity while reducing our environmental impact.” HanesBrands thoroughly evaluated the technology for eight months in live production conditions with positive results. Abbott continued: “During the evaluation period of the system, we have had outstanding results in productivity increase, and we can clearly see that this technology will make a great contribution to our future efficiency and sustainability savings.”

Peter Hultberg, Chief Commercial Officer at Baldwin, said: “We are honored to partner with one of the world’s strongest apparel brands to help the company achieve not only its business goals, but also its corporate responsibility goals. The trust the HanesBrands team placed in Baldwin and our innovative application technology marks an important milestone for Baldwin and our quest to redefine the standards of sustainable textile finishing.”

The HanesBrands contract includes an option to supply 15 additional Precision Application Systems. 

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.