JD Capital Invests 510 Million Yuan in Luolai Lifestyle Build Full-Channel Home Life O2O


Luolai Lifestyle Technology Co., Ltd. (Luolai Lifestyle, 002293) announced on May 5 that it would launch a private placement of no more than 104 million shares to multiple subscribers, including JD Capital, which invested a total of 510 million yuan in purchasing 40% of the issuance.

JT Asset Management, a brother company of JD Capital, also subscribed through the fund it manages.

Investment in Luolai drives the upgrading of business models

As a leading home textile enterprise and among China’s first enterprises in manufacturing and selling home textile products, Luolai Lifestyle mainly deals in the R&D, designing, manufacturing and marketing of textile products. At present, the company plans to transform itself into a one-stop brand retailer of home life supplies, including bedroom, bathroom, kitchen and living room articles, as well as home décor accessories, with a view to enriching home life scenes and providing one-stop shopping experience.

According to the announcement, the proceeds from the placement shall be used to fund the “All-channel Home Life O2O Operation System Project” (the Project) and the “Supply Chain Optimization Program” (the Program).

By leveraging Luolai’s years of experiences and accumulated resources in offline distribution channels, brand operation and online marketing network, the Project aims to accelerate the deployment of offline home life stores, the corporate transformation towards a one-stop brand retailer of home life supplies, and the integration of online/offline sales network, so as to build a full-channel O2O home life products system.

As for the Program, Luolai plans to improve the general warehouse and at the same time sets up new regional sub-warehouses. The management system for the supply chain will be upgraded to enhance the supply chain’s operation & management and the retail terminals’ services, providing support for the company’s transformation and O2O system construction.

Sector leaders aim at reaping a market cap of 100 billion yuan

In recent years, as the Internet rapidly penetrates into every corner of people’s life and revolutionizes the consumption habits, the competition landscape of the home textiles industry experiences gradual changes. It also helps unleash the huge potential of e-commerce market.

Public data shows that the market size of China’s home decoration industry has exceeded 1.5 trillion yuan, visibly higher than that of home textiles. The insatiable market demand provides huge room for the growth of Luolai Lifestyle.

With its diverse resources and on the back of China’s economic structural adjustment and consumption upgrading, JD Capital will assist Luolai in optimizing its business model and strengthening its leadership in the industry. 

JD Capital has long been dedicated itself to the integration of available resources to fuel the development of listed companies. Under the “bellwether plan”, it will continue to invest in sub-sector leading enterprises. By dint of its professional experiences, capital market innovations, and global network of business resources, JD Capital will be able to help leading enterprises in domestic and overseas M&A to further improve their core competitiveness.