Lining Was Joined By Lotto Sport To Strengthen Distribution Channels.

Lining (02331) announced that it had obtained the exclusive franchise of Lotto Sport for a period of about 20 years. Lining could use the Lotto trademark in the mainland to develop, manufacture, marketing, publicize, promote, distribute and sell the trade mark. The estimated minimum amount of the licence fee is 933 million 900 thousand yuan (about 1 billion 60 million yuan).

Lining will pay 15 million yuan (about 17 million 100 thousand yuan) to Lotto Sport as a contribution to marketing and public relations activities concerning Lotto trademarks and licensed products.

Lotto is the sports brand of Italy, focusing on the world-class sports marketing resources of football and tennis.

The company believes that licensed brands will help reduce operating costs and enhance bargaining power in sports goods distribution channels.