Beckham Brand Franchise Rose 52%

In the morning of September 16th, the old clothing company Li Bang announced that the company signed an agreement with Beckham and obtained the franchise of the other party's brand.

With the news, the company's long-standing stock price soared 52.31% in a day, and the company's market value increased by HK $500 million in a day.

Authorized by Beckham brand

Notice shows that in September 15th, Li bang, a wholly owned subsidiary of Li bang, and Seven Global (as an authorized person) and Beckham (as a concessionary property owner) entered into an authorization agreement, and Seven Global agreed to grant the exclusive rights and licences of Li Bang international. The authorization applies to the promotion, promotion and endorsement of products around the world, and can also be used for the design, manufacture, purchase and distribution of products, or also under Kent&Curwen of Li bang.

The store sells other Beckham products.

Regardless of sales volume, Lebang needs to pay royalties, which cost $3 million 500 thousand in the first year and increased to $7 million 250 thousand in fifth years. If annual sales exceed US $100 million, the state should also pay 5%~10% of its sales as royalties, but the total amount does not exceed HK $60 million.

It seems that the gold medal of Beckham is still valuable.

In December 2014, foreign media reported that Beckham followed the footsteps of his wife Vitoria and launched his latest brand with Simon Fuler and authorized the brand to the Hongkong leafeng group.

Fuler has become a business partner with the Beckham family since the "Spice Girls" period, leading Victoria Beckham to become the world's attention brand.

At present, Li Bang has received the authorization from the affiliated company.

According to the announcement of Li bang, Seven Global was established in May 29, 2015 as a joint venture between Li Biao and Beckham and its Fuler company.

The announcement said that the establishment of Seven Global aims to continuously promote the development of Beckham brand in the world and will cooperate with other famous sports and entertainment giants and brand equity holders to create a large global brand.

The authorization announcement was issued before the opening yesterday morning. As of yesterday's close, Li Bang's stock price closed at HK $0.99, up 52.31% from the previous trading day. The market value of the company was HK $1 billion 730 million, an increase of nearly HK $500 million compared with the previous trading day.

Poor performance in recent years

Although share prices soared yesterday, Li Bang's share price remained below HK $1.

Once upon a time, Li bang was also a big bull stock on the Hong Kong stock market.

From the end of 2009 to the end of 2010, the company's share price rose from HK $2 to HK $8.94, the highest increase of over 300%.

Unfortunately, after that, share prices went down all the way, leaving only the most expensive ones.

Data show that Li Bang is mainly engaged in Greater China and Europe.

The retail and wholesale businesses of the brand also operate its own brand globally.

2014 annual report shows that the company's existing Kent&Curwen, Gieves&Hawkes, Cerruti 1881 and D 'URBAN four men's wear brands, currently in the Greater China 65 cities have 390 shops.

In recent years, the company's performance has not been improved. In 2011~2014, the company's revenues were approximately HK $2 billion 600 million, HK $2 billion 800 million, HK $2 billion 700 million and HK $2 billion 600 million, while the annual profits were HK $513 million, HK $540 million, HK $308 million and HK $161 million respectively.

In the first half of this year, the results showed that the company's revenue in the first half of 2015 was HK $1 billion 6 million, down 20% compared with the same period last year, while operating profit has turned into a loss, with a loss of HK $66 million.

To this end, the International Bank of communications released the report,

The drop was higher than expected and the first time it did not send medium-term interest since the listing, sales and profit pressures were lingering, and annual performance expectations were worrying. Therefore, the target price of the company was lowered to HK $0.8.