Lining Sold Part Of His Shares

After going through several closes and selling shares to shareholders, Lining, who actively raised money to build brands and reduced the ratio of assets and liabilities, once again focused his eyes on the previously acquired brand of red double happiness.

In October 25th, it was just concluded.

Lining announced that he would sell 10% of the red double happiness to China in the form of about 125 million yuan in cash.

After the completion of the paction, Li Ning Co's shareholding of red double happiness dropped to 47.5%, although it is still the largest shareholder of red double happiness, but red double happiness will no longer be a subsidiary of Lining, and will not be included in the consolidated statement.

Statistics show that the "red double happiness" trademark was founded in 1959 and was the first Chinese sports brand to appear on the World Championships (the twenty-sixth Beijing World Table Tennis Championships in 1961).

In November 15, 2007, Lining acquired 57.5% stake in Shanghai red double happiness Limited by Share Ltd through its indirect wholly owned Affiliated Companies Shanghai Yue Ao sporting goods Co., Ltd. with a total price of about 305 million yuan.

After the completion of the paction, Lining, the gymnast prince, holds about 29.5% of Li Ning Co shares, while holding 66.5% of the extraordinary China, and China has another 15.88% stake in Li Ning Co.

However, the deal also needs approval from an independent shareholder.

In fact, since the acquisition of Li Ning Co in 2007

After the brand, it has been focusing on its efforts.

A person close to Li Ning Co told reporters that Lining shares red double happiness company, which is also its brand value.

At that time, with the help of the Olympic Games, the performance of the sports brand went up. The Li Ning Co that only needs to expand is only a "Lining" brand. It needs to expand its business from the new brand.

Meanwhile, the old and red double happiness also hopes to expand the scale by using Lining's R & D power and developing other products besides the table tennis bat.

At that time, Lining also collaborate with red double happiness in the sales channels. At that time, Lining sold red double happiness products to some of the stores in Lining in order to build red double happiness.

It is in the background that Li Ning Co and other sports apparel groups are experiencing a cold winter market, and the red double happiness has also made gratifying achievements.

According to Li Ning Co's 2014 earnings report, the sales of red double happiness is not bad. It reached 681 million yuan in 2014, up 11.3% from the same period last year, accounting for 10.1% of Lining's total revenue.

What puzzles the industry is that red double happiness is such a way.

Why do we suddenly choose to sell shares when we build a brand with heavy weight?

On the same day, Li Wei, head of Li Ning Co's public relations department, also confirmed to reporters that the additional cash payment for the sale of red double happiness can be used as an additional investment in the development of our company's core brand portfolio of Lining, and further expand the company's distribution channels and general corporate purposes.

In October 28th, the Li Ning Co responsible person told reporters that the company's sale of red double happiness is the development strategy of the company. The company is relatively stable at present. Although there has been a paction related to the withdrawal of funds, it is also a reasonable capital flow for the company.