American Eagle Outfitters plans to sign a 1 billion yuan related-party procurement contract and will also receive 600 million yuan in financial support.

(Source: Vguan Finance and News)

On the 31st, Meibang Clothing disclosed a daily operations contract.

Meibang Clothing’s announcement screenshot, and the same below

According to the announcement, on March 31, Meibang Clothing held a meeting and reviewed and approved the proposal titled “On Signing Major Daily Operations Contracts and Related-Party Transactions.”

For fiscal year 2026, the company and its related party, Xinneng Textile, voluntarily entered into a cooperation relationship. The company or its subsidiaries will purchase goods from Xinneng Textile, and the expected amount of the related-party transaction is no more than 1 billion yuan. If, during the contract period, the transaction amount reaches the upper limit, after approval by both parties’ boards of directors or shareholders’ meetings, the parties may sign an additional agreement to increase the cooperation amount upper limit.

The above proposal still needs to be submitted to and approved at the company’s second extraordinary general meeting of shareholders in 2026.

It is worth noting that Xinneng Textile and Meibang Clothing have a related relationship. Meibang Clothing’s chairman and general manager, Zhou Chengjian, also serves as the general manager of Xinneng Textile.

Xinneng Textile’s business scope includes quantum computing technology services; spinning processing; textile processing of fabrics; fabric dyeing and finishing processing; garment manufacturing; apparel manufacturing; wholesale of clothing and apparel; retail of clothing and apparel; sales of knit and textile products; sales of knit and textile products and raw materials; apparel R&D; technology services, technology development, technology consulting, technology exchange, technology transfer, and technology promotion; internet sales, etc.

Meibang Clothing stated that the smooth implementation of the above contract will help the company improve supply chain management, enhance the efficiency of its production and operations management, have a positive impact on the company’s operating performance for fiscal year 2026 and the contract performance year, and improve the company’s profitability.

On the same day, Meibang Clothing also announced that its controlling shareholder, Shanghai Huafu Investment Co., Ltd. (hereinafter “Huafu Investment”), and its wholly owned subsidiary, Shanghai Kangwei Enterprise Development Co., Ltd. (hereinafter “Kangwei Enterprise”), will provide financial assistance with a total maximum amount of no more than 600 million yuan. The interest rate on the loan will be based on the Loan Prime Rate (LPR). The term of the financial assistance will be one year from the date on which the matter is approved by the company’s shareholders’ meeting.

The announcement states that the reason for providing financial assistance is “to support the development of Meibang Clothing.” It will mainly be used to supplement Meibang Clothing’s working capital, meet the company’s needs for business development, and improve the company’s financing efficiency.

Huafu Investment is the company in which Meibang Clothing’s chairman and general manager, Zhou Chengjian, holds equity. As of the date of disclosure of the announcement, Huafu Investment directly holds 25.58% equity in Meibang Clothing. According to relevant regulations, Huafu Investment is a related party of Meibang Clothing.

In 2025, Meibang Clothing expects to achieve net profit attributable to shareholders of the listed company of between -23,000 million yuan and -30,000 million yuan, representing a year-on-year decline of 17.72% to 53.55%.

Regarding changes in performance, Meibang Clothing said that during the reporting period, the company continuously advanced adjustments to its product strategy, actively processed historical inventory goods from 2024 and earlier, increased promotional discount efforts, which to a certain extent affected the company’s revenue scale and gross margin during the reporting period. However, the inventory aging structure at year-end saw a significant improvement, laying a foundation for the implementation of the company’s operating objectives and strategies for fiscal year 2026. In addition, based on accounting standards requirements and considerations of prudence, the impairment losses accrued by the company during the reporting period increased. In the same period last year, the company had a large asset disposal gain from disposing of property, and in the reporting period, gains from similar disposals decreased significantly.

(The views in the article are for reference only and do not constitute investment advice. There are risks in investment; be cautious when entering the market.)

Cover and lead-in image sources: AI-generated images

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