On January 31, 2019, Shandong Ruyi Holding Group announced the completion of the acquisition of the apparel and high-end fabrics business of the American company Invista, including the world-renowned LYCRA brand. After more than a year, Laika has been running stably under Ruyi for more than a year and has achieved impressive results.
Since the beginning of 2020, even under the influence of the new crown epidemic, The Lycra Group has maintained stable operations, with LYCRA HyFit® fiber for hygiene growing against the trend and always operating at full capacity. The Lycra Group has vividly demonstrated the vitality and competitiveness that technology brings to enterprises during this epidemic.
On May 14, the management of Ruyi Group and Lycra announced that Lycra Group would be repositioned and issued a joint statement. The statement sorted out the highlights of Lycra after being acquired by Ruyi, and introduced Lycra’s current operating strategies and key points of change under the influence of the new coronavirus epidemic. At the same time, the statement pointed out that Lycra will use its own advantages to integrate more deeply into the Chinese market in the future and will complete the IPO in a short time.
The full text of the statement is as follows:
No Fear the tough times and embrace the glorious future
May 14, 2020
Dear shareholders and investors:
Time flies, Lycra Group has been a company controlled and independently operated by Ruyi Group for more than a year. 2019 is the first year for Ruyi to join hands with the Lycra Group. Despite the external environment being full of challenges, the Lycra Group has still maintained a comprehensive and long-term competitive advantage through new technologies and products, and has always maintained a leading position in the market.
The successful experience of the Lycra brand for more than 60 years is to create value through technological strategic innovation. Entering 2020, Lycra Group has steadily promoted its strategy of technological innovation and business growth. Although the COVID-19 epidemic has brought various adverse impacts to various countries, industries and enterprises around the world, we believe that through our active response and the gradual implementation of the “Ruyi·New Lycra” strategy, Lycra will be able to continue technological research and development in the future. , business development, production capacity optimization, profit improvement and listing on the China Science and Technology Innovation Board to overcome short-term difficulties and embrace a better tomorrow.
The challenge of the global epidemic
The new coronavirus has developed into a global epidemic Epidemic diseases have caused social isolation and economic stagnation, and have had a great impact on all walks of life, especially the thriving consumer goods industry in Europe and the United States. The Lycra Group and some customers have also been inevitably affected. Fortunately, during the epidemic, orders for hygienic LYCRA HyFit® fiber bucked the trend and increased, and production was always at full capacity. Despite the current crisis, we still maintain the company’s stable operations and cash flow generation through a series of measures. We firmly believe that as the global epidemic gradually improves and society gradually resumes production and work, it is expected that downstream consumption will return to normal levels. During the outbreak, we worked hard to reduce the company’s operating costs as much as possible during the epidemic, ensure the stable production of LYCRA HyFit®, and maintain the company’s normal production and operations.
The performance highlights of Lycra Group since joining Ruyi Group
●Establishment The LYCRA Group’s culture, including purpose, mission and principles, is designed to retain and attract world-class talent. Developed the necessary organizational capabilities and work processes as a global independent company. Make strategic investments in branding, research, and product innovation to strengthen our leadership position in the apparel and hygiene products industries.
●The Lycra Group’s unique “market demand-driven R&D system” has been further deepened. Conducting research and development around customer needs and introducing new products can not only improve the conversion efficiency of research and development results, but also create better customer experience and customer satisfaction. Specifically, we launched four revolutionary new products that support The Lycra Company’s position as an innovative leader and provider of differentiated solutions in the apparel and hygiene industries. This targeted and unique solution from a technical perspective ensures our unique leading position in the industry. In the future, Lycra Group is expected to continue to deepen this R&D system while maintaining high investment in R&D to better serve customer needs.
●The sales of Lycra brand fiber have maintained a high degree of stability over the years. What is commendable is that Lycra has formed a strong pricing power in the market through long-term accumulation and successful brand building. Lycra’s fiber price is far higher than that of its competitors, but its ultra-high stability and continuous technological innovation help achieve cost savings throughout the production cycle and significantly increase product value. This is the fundamental factor why Lycra’s price is far higher than that of its competitors. , and it is also a competitive advantage that competitors cannot surpass in the short term. Performance makes the Lycra brand, and Lycra empowers brand customers, achieving a win-win situation for all parties. Lycra new materials not only help end customers obtain customized performance, but also effectively help customers improve their end products.��point. We expect that these strategic measures will lay a solid foundation for entering the China Science and Technology Innovation Board market.
We sincerely thank all investors for their support to Ruyi Group and Lycra Group in the past. At this time of a once-in-a-century epidemic and a critical period for the transformation and development of the Lycra Group, we also sincerely hope that all investors can fully understand the complex situation faced by the Lycra Group and Ruyi, eliminate interference, work together, and overcome the difficulties with us.
Confucius, a great thinker in ancient China, once said that all twists and turns must lead to the east, that is, all rivers will flow east to the sea. As long as people’s yearning for a better life always exists, Lycra’s products will always have loyal customers, and our products will achieve better growth. We firmly believe that Ruyi Group and Lycra Group can write a new chapter for Lycra and create a more brilliant future by implementing a new strategic layout, strengthening collaboration with Ruyi, continuing research and development, optimizing production capacity, strengthening the Chinese market, and closely connecting with the capital market. tomorrow! Only in this way can we achieve a win-win situation between Laika Group and all investors!
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