JD Capital Cooperates with Ideal in Setting Up a Billion-Yuan Buyout Fund


Ideal (002740) announced a plan on June 19 about setting up a jewelry industry buyout fund of one billion RMB with JD Capital, with an aim to further optimize its assets and speed up extensive development. 

JD Capital will make use of the platform to integrate all valuable resources, thus reserving buyout targets conforming to Ideal’s development strategies and accelerating the company’s development of a complete industry chain. 

Meanwhile, Ideal will fully participate in emerging-industry investment by taking more shares, so as to gain capital increments, share in the fruit of the structural adjustment of Chinese economy and the development of strategic emerging industries, and finally optimize its business model.

The first listed company specializing in diamond-inlaid jewelry

Ideal Jewelry, went public in January 2015, was the first jewelry company in Shenzhen got listed on the SMEs board. It is also the only listed company specializing in diamond-inlaid jewelry. JD Capital became a shareholder of Ideal in 2010 and held 6.67% stake before the public offering. 

Ideal accelerates to develop an online platform after the listing. Besides optimizing the existing online mart and increasing mobile sales terminals, it integrates designer resources both at home and abroad to develop one-to-one customized jewelry business, and thereby brings in abundant high net worth individuals of these well-known designers.

In the aspect of terminal layout, Ideal has set up 381 brand outlets in 264 cities nationwide, and established several wholly-owned subsidiaries recently. All these have helped to develop franchisee business, set up more franchised outlets and improve regional logistics and after-sale services.

In addition, the company also has established China’s first online finance platform dedicating in the jewelry industrial chain. The platform provides one-stop financial services, including franchisee purchasing and upstream raw material purchasing. By integrating online and offline sale systems, it has successfully broken the shackles of traditional business models.  

Through capital-assisted industrial integration, Ideal aims to lead the jewelry industry in the stock market

China’s jewelry industry develops the most rapidly in the world. With the annual compound growth rate of 20%, China has become the second largest jewelry market after the US.

Meanwhile, the per capita jewelry consumption of China is 1/4 of that of Italy, France, the UK, and Japan, and 1/8 of that of the US. More than 60% of the increase of luxury consumption attributes to the second and third-tier cities. Therefore, there is huge room for endogenous growth.

As the strategic partner of Ideal, JD Capital will make full use of its industrial and capital resources to help it achieve the strategic goal of becoming the leading listed jewelry company in China, through a series of horizontal and vertical mergers and acquisitions. The fund will focus on acquiring and integrating regional jewelry brands and sale channels, as well as acquire overseas jewelry companies and integrate cross-border luxury brands in good time. 

Up to now, JD Capital has helped listed companies with nearly 30 acquisitions and reorganizations, and set up buyout funds with seven listed companies.