Shanshan is “selling something” again. On May 27, Shanshan Brand (1749.HK), which is listed in Hong Kong, announced that it would sell its holdings of Ningbo Lekake Clothing to its wholly-owned subsidiary Ningbo Shanshan Fashion Clothing Brand Management Co., Ltd. on June 22. (hereinafter referred to as “Ningbo Lekake”) held a special general meeting of shareholders regarding 20% equity interests. If the sale is completed, Shanshan Brand will no longer hold any interest in Ningbo Lecaq.
On April 29, Shanshan Brand disclosed matters related to the sale , the transferee is Ningbo Shanshan Rongguang Clothing Co., Ltd. (hereinafter referred to as “Shanshan Rongguang”), the price is 50 million yuan, and the expected net income is approximately 13.7756 million yuan.
According to Sky Eye inquiry, Ningbo Shanshan Rongguang Clothing Co., Ltd. is 100% controlled by Xingyun International Investment Co., Ltd. registered in Hong Kong.
According to public information, a reporter from the First Textile Network learned that the origin of “LECOQSPORTIF” can be traced back to 1882 when French national Emile Camuset founded a company that started out as a manufacturer of sportswear and sports socks. The sports brand Lecoqsportif uses this little rooster as its brand logo. It was not until 1948 that Lecoqsportif was officially registered, but it really attracted the attention of the sports world because it sponsored the French team in the World Cup in 1982, and it began to gradually establish its leading brand status. It was the exclusive sports brand provided by France in professional cycling competitions. By 1951, 12 countries internationally had designated Lecoqsportif’s professional sportswear. In addition, it has also been a long-term sponsor of FCNantes, the team that won the French Football League championship for 38 consecutive seasons; it is also a professional sports product designated by Kenyan middle and long-distance national players, Argentinian tennis players, British football clubs and other well-known national or sports competitions. brand.
Ningbo Lekake Clothing Co., Ltd. is composed of Ningbo Shanshan Co., Ltd., Ningbo Shanshan Rongguang Clothing Co., Ltd., It was jointly invested and established by Japan’s Descente Co., Ltd. and Itochu Fiber Trading (China) Co., Ltd. Among them, Shanshan is the leading company in China’s clothing industry, Descente Co., Ltd. is the leading company in Japan’s clothing industry, Itochu is a Fortune 500 company, and Shanshan Rongguang is a strong company under Shanshan. All investors are from China and Famous Japanese companies.
Ningbo Lecoq Clothing Co., Ltd. is a large-scale Sino-Japanese joint venture that mainly operates lecoqsportif (Lecoq) brand sports and leisure clothing. It has a registered capital of US$2 million and has The exclusive agency and trademark licensing rights of lecoqsportif brand in mainland China. As an internationally renowned brand, Lecoqsportif brand was founded in France in 1882 by Mr. Emire Camizé.
As a former leader in men’s clothing, Shanshan has been operating with world-famous clothing companies since the mid-1990s. Cooperation and exchange in management. From brand agency to market sales, Shanshan’s clothing segment has successively owned many internationally renowned brands including Marco Essani, Callaway, Lecoq, Shaxi, Renoma and other famous brands, and has embarked on a multi-brand, international business. the way.
Economist Song Qinghui said that the Shanshan brand has already started to suffer losses in 2019, and the sale of Ningbo Lecaco shares may be a way to withdraw some funds.
Regarding the reasons for the sale, Shanshan Brand stated in the announcement that part of the net proceeds collected from the sale will be used for working capital needs, which is expected to enable Shanshan Brand to invest in more Multiple resources focus on the development of managed brands to enhance their long-term value.
In addition, Shanshan Brand can use part of the net proceeds from the sale to repay part of its bank borrowings, reduce its overall interest costs and improve its financial position. The net proceeds from the sale, after deducting related expenses, are estimated to be approximately NT$49.2014 million.
Shanshan Brand stated in the announcement that it plans to use 40% of the net proceeds from the sale as working capital, and 60% of the net proceeds from the sale to return existing Bank loan.
Song Qinghui analyzed that if the sale of Lecaq’s equity passes the shareholders’ meeting, part of the funds will be recovered for the Shanshan brand; if it fails to pass the shareholders’ meeting, the sale will not be successful. , may not be able to solve the Shanshan brand’s predicament and bring a blow to Shanshan brand’s capital flow.
On February 3 this year, Shanshan Co., Ltd. announced that it planned to transfer a total of 48.1% of its shares in Shanshan Brand Operation Co., Ltd. to Shaanxi Mao Ye, Lian Kang Finance, Hengtong Trading, Li Xinghua and Zu Weiwei, the transaction price totaled 168 million yuan. After this equity transfer, the company’s shareholding ratio in Shanshan Brand will be reduced to 19.37%, and Shanshan Brand will no longerand then be included in the company’s consolidated statements. At present, the transaction has not yet completed equity delivery. Shanshan Co., Ltd. said that this is the company’s initiative to make subtractions.
On April 23, Shanshan Co., Ltd. voted to pass the “Proposal on the Proposal to Change the Company Name” and planned to change the company’s Chinese name to “Shanshan Lithium Battery Materials Co., Ltd.” .
Shanshan Co., Ltd. announced that with the rapid development of the company’s lithium battery materials business, the lithium battery materials business (including cathode materials, Anode materials and electrolytes) have become the company’s main sources of revenue and profits. In 2019, the operating income of the lithium battery materials business accounted for 79.77% of that year’s operating income.
Shanshan Co., Ltd. said that the changed company name matches the company’s main business, will highlight the company’s core business, and is in line with the company’s actual operating conditions, strategic positioning and future development plans. </p
