Lining's 57.5% Stake In Red Double Happiness

The purchase amount was 305 million yuan, and the largest table tennis equipment manufacturer in China was incorporated into the former "gymnastic Prince". Li Ning Co Ltd listed in Hong Kong announced in late 15 that it spent 305 million yuan to acquire shares of Shanghai red double happiness Group Co., Ltd., a famous table tennis equipment manufacturer. The acquisition will be carried out by Lining, a wholly owned subsidiary of Shanghai, Yuet Ao sporting goods Co., Ltd.. After the completion of the acquisition, Yue Ao will become the largest shareholder of the group holding 57.5% of the red double happiness group. Lining (Hongkong exchange code: 2331) will purchase shares from four private shareholders of red double happiness: three of them are registered in Shanghai and one is registered in Hongkong. The other two shareholders who did not sell shares still hold a 42.5% stake in the group. Red double happiness is mainly engaged in the development, manufacture, marketing and distribution of "red double happiness" brand table tennis and badminton equipment. It is China's largest table tennis equipment manufacturer and a number of international tournament sponsors. The "red double happiness" brand was born in 1959. It was named after celebrating the National Day 10th anniversary and Rong Guotuan won the first world champion. As an old state-owned enterprise in Shanghai, red double happiness was in a dilemma in the mid 90s of last century. In 1995, Shanghai table tennis factory, Shanghai racket factory, Shanghai sports equipment factory and equipment three factory were merged into Shanghai Hongxi sports goods general factory. At the same time, the Hongkong double happiness Guandu sporting goods Co., Ltd. was set up by the end of the year. In 2005, it was transformed into a joint-stock enterprise. In 2000, the International Table Tennis Federation announced the first time to use the red double happiness 40 millimeter table tennis ball in the October World Cup by reforming the table tennis ball. As a result, the technical standard of the red double happiness ball has been adopted by the International Table Tennis Federation as an international standard, and has established an important position in the world table tennis field. According to the financial report, as at the end of 2006, the net assets of the group were about 134 million yuan, and the profit before tax was 38 million 480 thousand yuan. The Li Ning Co Ltd was founded in Sanshui in Guangdong in 1990, and the sponsor is Lining, the famous gymnast. In 2004, Li Ning Co listed on the main board of Hongkong exchange and became the first Chinese sporting goods company to list overseas. The company's products are mainly sports and leisure sports shoes, clothing and accessories, the main brand is "Lining card" and "new mobile card". According to the financial report, by the end of 2006, the total assets of Li Ning Co were 2 billion 165 million yuan, and the pre tax profit was 401 million yuan. Li Ning Co announced that the acquisition could strengthen the position of the company in the fast-growing Chinese table tennis and badminton products market, further enhance the brand image of Lining and realize its multi brand management strategy.