YOUNGOR Intends To Acquire 25% Stake In 14 Subsidiaries By 750 Million

Introduction: Youngor (micro-blog) recently announced the announcement of a wholly owned subsidiary of new Malaysia clothing The International Limited company (hereinafter referred to as "new Malaysia International") intends to sign a share transfer agreement with the related party Zou's International Limited company (hereinafter referred to as "Zou Shi international"), which is priced at the audited net assets of 14 companies such as Ningbo YOUNGOR shirts Co., Ltd. in 2010, and acquired Zou's international holdings of 25% of the 14 companies. stock right The total purchase price is 753 million 800 thousand yuan.

Since the amount of the related transaction exceeds the audited net assets of the company in 2010, more than 5% of the audited net assets need to be submitted to the shareholders' general meeting for deliberation and approval. 30 days from the date of the signing of the equity transfer agreement, Xin Ma international will pay 30% of the share transfer rights to Zou's international share, and the remaining 70% equity transfer payments will be paid within 6 months after the entry into force of the agreement. The currency of the equity transfer payment is HK $. The exchange rate is calculated at the middle price of the foreign exchange rate announced by the people's Bank of China in December 31, 2010, and the share transfer amount is HK $885 million 800 thousand.

Before the acquisition, Zou held 25% of the 14 companies, and YOUNGOR's wholly owned subsidiary YOUNGOR clothing Holdings Limited ("clothing holding") held 75% of the 14 companies. In the 14 subsidiary companies, except for the registered place of Chongqing YOUNGOR Garments Co., Ltd., located in Chongqing, the other 13 companies are registered in Ningbo, which covers the production, processing and sales of garments such as shirts, Western-style clothes, needles and textiles.

As of March 31, 2011, Zou's total assets amounted to HK $345 million 596 thousand and 500 and its net assets amounted to HK $177 million 197 thousand and 800. From April 1, 2010 to March 31, 2011, the operating income was HK $1 million 49 thousand and net profit was HK $37 million 203 thousand and 600. And the transferee of the deal, new Malaysia International, is a wholly owned subsidiary of YOUNGOR, which was acquired in 2008.

After the completion of the equity purchase, Ningbo YOUNGOR shirt Co., Ltd. and other 14 companies become wholly owned subsidiary companies. The net profit realized by the company's brand clothing sector will no longer eliminate minority shareholders' profits or losses.

YOUNGOR said that in recent years, with the continuous upgrading of domestic demand and upgrading of consumption structure, the domestic garment industry has shown a good momentum of vigorous development. Benefit from this, YOUNGOR brand clothing is to grasp the historical opportunity, deepen the domestic market, launch and implement the multi brand development strategy, accelerate the transformation and upgrading of the industrial structure, expand the channel network in an orderly way, and achieve steady growth in business performance and the continuous upgrading of the brand image. In order to further tap the potential of brand clothing development and enhance the overall profitability of the company, the company intends to integrate the ownership structure of the garment sector.

Statistics show that the net profit of the company's brand clothing in 2009 declined compared with the same period last year. The main reason for this is that YOUNGOR's wholly-owned subsidiary, new Malaysia clothing group limited, has incurred a large number of one-time expenses and losses due to industrial integration and production base transfer in the context of the financial crisis. The company was transferred to related party Shengzhou Sheng Tai dyed Weaving Technology Co., Ltd. in the year. However, in 2010, the net profit of the company increased by 51.43% over the same period last year. The net profit attributable to the parent company and minority shareholders' profits and losses increased by 67.56% and 17.12% respectively over the same period last year.

Notice shows that the company's brand clothing plate, after only 14 Ningbo YOUNGOR shirt Co., Ltd., a non wholly owned subsidiary, a minority shareholders profit or loss. The operation of these 14 companies has maintained a good momentum of development, and the profit level has been increasing year by year. After the completion of the acquisition, it will help the company to make bigger and stronger brand clothing business and improve the overall profitability of the company's brand clothing sector.