Ruyi Group’s once-stated ambition to become China’s LVMH Group continues to fall short. According to its 2021 half-yearly report, the textile and apparel group, based in Jining, Shandong province, reported total revenue of 261 million yuan ($40.4 million), down 20.43 percent year-on-year, and a net loss widening 392.9 percent to 44.75 million yuan ($6.93 million).

The group operates three major businesses: textile manufacturing, apparel and textile raw material trading. Its largest business is apparel, which saw the heaviest losses. Revenue plummeted 44.67 percent and gross margin declined 12 percent, the share of Ruyi Group revenue attributed to apparel fell from 76.57 percent to 53.24 percent.

The group and its affiliates own brands including Sandro, Maje, Gieves & Hawkes, Kent & Curwen and Cerruti 1881. Since 2019, in addition to the poor performance of its main business, Ruyi and its affiliates have faced significant debt pressure and strict regulatory scrutiny from China’s SEC.

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