Shan Shan 50 Million Sells Desanto And Itou Tada Shares Of Ningbo Kark Kark Clothing Shares

The first "clothing first" Shanshan brand operation Limited by Share Ltd (hereinafter referred to as "Shanshan brand") issued a notice today that in April 29th, the transferor, a wholly owned subsidiary of Ningbo Shanshan fashion clothing brand management Co., Ltd. and the transferee, Ningbo Shanshan Rong Guang Clothing Co., Ltd., entered into a share transfer agreement, whereby the transferor agreed to sell the goods conditionally. The transferee has the right to agree to purchase the rights for sale, the cost is RMB 50 million yuan. The rights to be sold account for 20% of the shares of Target Corp (Ningbo Kark Clothing Co., Ltd.).

As for the date of the transfer agreement, the shares of Target Corp are 20%, 30% and 50% respectively from the transferor, the transferee and the other third independent parties. Target Corp is an affiliate of the group. Following the sale item, the transferor will no longer hold any rights and interests of Target Corp.

Ningbo Le Kark Fashion Co., Ltd. is a limited company established in China, mainly engaged in sports goods retail, trade and distribution business. The audited income for the two years ended 2018 and December 31, 2019 was 578 million yuan and 617 million yuan. The net assets audited as of December 31, 2019 were about 177 million yuan.

The Shanshan brand will use some of the proceeds collected from the sale items to fund its own operational capital requirements. This will also enable the company to invest more resources in the management of its own brand development so as to enhance the long-term value of the company, and enable the company to make use of the net proceeds from part of the sale proceeds to return part of the bank's loans, which will reduce the overall interest cost of the company and change it. Good financial position.

The net proceeds from the sale are estimated to be 49 million 201 thousand and 400 yuan after deducting the related expenses. The net proceeds from the 40% sale of Shanshan brand will be used to repay the company's existing bank borrowings with net proceeds from its own operating capital and 60% of the sale proceeds.

According to public information, the origin of "Le Kark LECOQSPORTIF" dates back to 1882, when the French EmileCamuset founded Lecoqsportif, a sports brand that started with sportswear and sports socks. It was not until 1948 that Lecoqsportif was officially registered. However, the real attention of the sports world was due to the sponsorship of the French team in the world cup in 1982. It is the exclusive sports brand for France in the professional cycling competition. By 1951, 12 countries in the world had designated Lecoqsportif professional sportswear. In addition, it has long sponsored FCNantes, the 38 consecutive season champion of the French Football League. It is also a professional sports brand for Kenya's middle and long distance runners, Argentina tennis players and English football clubs.

Ningbo Le Kark Garments Co., Ltd. is jointly invested by Ningbo Shanshan Limited by Share Ltd, Ningbo Sugisugi Eiko Garments Co., Ltd., Japan's company, and the Chinese Trade Co., Ltd. Among them, Shan Shan is a leading enterprise in China's clothing industry. Japan's company is a leading enterprise in the Japanese clothing industry. Itou Tada is the world's top 500 enterprise. Sugisugi Eiko is a strong company under the Chinese fir. All the investors are well-known enterprises in China and Japan.

Ningbo Le Kark Clothing Co., Ltd. is a large Sino Japanese joint venture mainly engaged in lecoqsportif (Lok Kark) brand sports and casual wear, with a registered capital of 2 million US dollars. It has the exclusive agency and trademark usage rights of lecoqsportif (Lok Kark) brand in mainland China, as well as the brand of Le Kark as an internationally renowned brand, created by Mr. Amiru Camici in 1882. It was built in France.

According to public information, Zheng Yonggang founded in 1989. With its high quality, fashionable and exquisite production, the Chinese fir grew into the first brand of Chinese suit in a short time. A TV advertisement slogan of "Shan Shan suit not too smart" made it red in the country. In 1991, under the leadership of Zheng Yonggang, Shan Shan began to explore the enterprise restructuring, first from the state to a set. Then it will be changed into joint-stock system. In 1996, Shanshan became the first listed company in China's garment industry.

In February 4, 2020, once the "clothing first stock" Shanshan stock held a 48.1% stake in Shanshan brand operation Limited by Share Ltd (hereinafter referred to as "Shanshan brand"), and the price was transferred to 168 million companies and individuals including Shaanxi maye industry and Trade Co., Ltd. It appears in the financial statements of its parent company.

According to the earnings report, in December 31, 2019, the brand income of Shanshan reached 1 billion 36 million yuan, up 1.09% from the same period last year, and gross profit was about 582 million yuan, down 2.24% from the same period last year. The total annual loss and total expenditure were 23 million 178 thousand and 400 yuan, while the total profit of last year's profit and total income were about 35 million 667 thousand and 800 yuan in the same period last year, and the loss per share was 0.12 yuan.

Shan Shan brand explained that net profit to net loss was mainly due to the decline in gross margin of sales, and the increase in sales and distribution expenses of the group, the provision for impairment of accounts receivable and other receivables, which was partially offset by the listed expenses recognized in the current year.