Disputes Over The Right To Use The Name Of Red Dragonfly And Relatives Of AOKANG Controllers

Plans to become Wenzhou's second listed shoe enterprises plan fear of health variables.

Red Dragonfly sudden announcement said, due to recent reports and need to be reviewed, originally scheduled for the day's online roadshow and the 6 day's online purchase announcement was cancelled, and decided to postpone the follow-up issue.

Red Dragonfly told reporters that the letter on the report has not yet received formal correspondence from the SFC, but it is likely to be related to the lawsuit brought about by Lucheng Red Dragonfly ("Wenzhou Lucheng Red Dragonfly shoe industry").

The same as Wenzhou shoe enterprises, red dragonfly and Lucheng Red Dragonfly dispute has been a long time, but it has a little relationship with Wenzhou, another listed shoe company AOKANG international.

Reporters found that the actual controller Qian Jinbo of red dragonfly is actually the uncle of AOKANG international actual controller and chairman Wang Zhentao's wife, Lin Li Qin, and has also been one of the sponsors of AOKANG international predecessor, Yongjia Huang Tian Olin shoe factory.

As a competitor, the Red Dragonfly Prospectus has not disclosed the relationship between the two companies.

Lucheng Red Dragonfly legal representative Chen Shi District told reporters that a few days ago, the company did report the real name of the red dragonfly to the SFC, and the company and the Red Dragonfly had a long dispute over the right to use the name.

Public information shows that the Red Dragonfly parent Red Dragonfly Group was registered in November 1, 1996, and Lucheng Red Dragonfly registered in September 6, 1996, specializing in the production and sale of various high-end leather shoes for men and women.

In January 2003, the Red Dragonfly Group sued Lucheng red dragonfly, claiming that the latter violated the "enterprise name" and asked the court to order the defendant Lucheng red dragonfly to change the enterprise name.

After that, Lucheng Red Dragonfly filed counterclaim.

In March 16, 2004, the two sides reached a settlement agreement under the mediation of the Zhejiang high court.

Since then, the "Red Dragonfly" character of both enterprises can be used normally.

In April 2014, the Red Dragonfly once again filed a lawsuit against the court on the grounds of infringing its trademark right, but in the case of a counterclaim filed by Lucheng red dragonfly, the Red Dragonfly took the initiative to withdraw it to the court.

Chen Shi District disclosed that the company filed a case in April 23rd this year in the intermediate people's Court of Wenzhou, Zhejiang Province, calling for the abolition of the name "Red Dragonfly" in the red dragonfly. The case will be held in May 29th.

"When the right to use red dragonfly is not listed, it will hurt investors' interests."

For the reasons for reporting, Chen Shi District explained.

And the Red Dragonfly side told reporters that after the conclusion of the case, the results will be released in time according to the relevant provisions of information disclosure.

No mention of AOKANG International Relations

Without this incident, Red Dragonfly will become the second listed Footwear Company in Wenzhou this month.

Prior to April 26, 2012, AOKANG international listed on the Shanghai Stock Exchange and became the first shoe company in Wenzhou.

Reporters found that AOKANG international Prospectus has pointed out that the actual controller Wang Zhentao's wife Lin Liqin's uncle is Qian Jinbo, the actual controller for the red dragonfly.

Because AOKANG International President and director Wang Jinquan is Wang Zhentao's younger brother, Qian Jinbo is related to his relatives.

It is understood that in July 1989, Wang Zhentao, Qian Jin Bo and Li Qize separately invested ten thousand yuan to set up the predecessor of AOKANG group, Yongjia county Huang Tian Olin shoe factory. In January 18, 1995, Qian Jin Bo pferred all the capital contributions of Yongjia Olin shoe factory to Wang Zhentao, and then returned to establish the red dragonfly.

In addition, the red dragonfly and AOKANG international have two registered places.

According to the prospectus, the Red Dragonfly registered place is Wangjia Wei Road, Dongou Industrial Zone, Oubei Town, Yongjia County, Wenzhou, while AOKANG international is AOKANG Industrial Park, Dongou Industrial Zone, Oubei Town, Yongjia County, Wenzhou.

As a matter of fact, there is a overlap between the two sides' business scope.

It is understood that the Red Dragonfly business scope is "Red Dragonfly brand, mainly leather shoes, leather goods, children's products design, development, production and sales", while AOKANG international is "men and women leather shoes and leather products R & D, production, distribution and retail".

AOKANG International said in the prospectus that AOKANG international and red dragonfly are two major enterprises in the domestic shoe industry.

From 2008 to 2011, there were 47 manufacturers.

In the meantime, the proportion of AOKANG international procurement from reclosing factories accounted for 12.69%, 19.13%, 24.32% and 19.71% respectively.

The Red Dragonfly revealed in the prospectus that the company's main competitor is BELLE international.

International, 100 degrees, AOKANG international, Saturday and so on.

But the Red Dragonfly didn't mention this relationship in the prospectus.

In this regard, red dragonfly explained: "Uncle nephew relationship is not the" enterprise accounting standards "and the Shanghai Stock Exchange Listing Rules, the relevant relationship, in reality, it can not have any substantive impact on both sides of the company's operations.

Qian Jinbo and Wang Zhentao do not have any control or significant influence on the other company's composition.

Therefore, the relationship between two parties does not constitute competition in the same industry, nor is it a mandatory disclosure relationship. Therefore, there is no need to disclose in the declaration materials.