Sanfo Outdoor Strategic Cooperation With Swiss Technology And Fashion Brand X-BIONIC

Sanfo outdoor (002780) (002780.SZ) announced that the company, as Party A, signed the Sanfo outdoor and X-BIONIC strategic cooperation contract with the X-BIONIC AG company ("X-BIONIC") in May 26, 2019 at the new spring festival conference site of X-BIONIC 2020, Verona, Italy.

The announcement shows that X-BIONIC AG is registered in Switzerland and the X-BIONIC brand is an international leading brand of science and technology fashion. It focuses on the design and development of high-tech sports products, and has a bionic laboratory in Italy, focusing on the research and application of biomimetic science and technology.

X-BIONIC has about 800 international patents. IF ranks nineteenth in global innovation. It won 34 German red dot design awards, 71 Plus X awards, and more than 600 international awards and test titles.

In the past five years, more than 1100 athletes wearing X-BIONIC technology products have won medals in major ice and snow events around the world.

Through in-depth communication with the founders and core teams of both sides, we have established a deep mutual trust and harmonious and efficient team cooperation relationship. Based on X-BIONIC brand technology, patents, product capabilities and Sanfo outdoor brand, team, operation and management capabilities, channels, industry resources, and over 20 years of experience in China's outdoor sports market, the two sides can form a strong force to jointly design and develop high-tech and high quality fashion sports products, serve the needs of Chinese sports enthusiasts and professional athletes, as well as global consumers and professional athletes, and sign this strategic cooperation contract.

1. Sanfo outdoor is the only strategic partner of X-BIONIC in China. All the technology, patents, brands, products and other resources of X-BIONIC will be limited to Sanfo's outdoor landing market in China (X-BIONIC and other international brands outside China).

The technology, patents, brands and products owned by X-Technology will cooperate with Sanfo outdoor to enter the Chinese market through specific consultations.

2, the two sides will set up a product R & D and design center to develop world-class quality products for sports enthusiasts, professional athletes, Winter Olympic athletes, special forces, fire fighters, astronauts, and expand Sanfo outdoor as a leading enterprise in sports, leisure and innovation.

3, the two sides will build a new retail system with experience, digitalization, technology and fashion.

4, the two sides will establish a natural bionics center, dedicated to natural bionics technology research, and are committed to introducing X-BIONIC decades of research achievements in bionics, and will apply these technological achievements to develop high-quality products that improve athletic performance and enhance the quality of life.

5. Within the validity period of this contract, Sanfo outdoor enjoys all the necessary authorization for the execution of the contract, including the product design, R & D and sales authorization of the X-BIONIC brand, including the authorization of all technology, patents, products and other resources owned by X-BIONIC, including the authorization of the X-Technology company's technology, patents, brands and products to enter the Chinese market with the Sanfo outdoor cooperation through specific consultations, including the authorization of AUTOMOBILI LAMBORGHINI brand design, production and sale of products within the scope of the agreement between X-BIONIC and AUTOMOBILI LAMBORGHINI, and other authorized authorization. The scope of authorization is the Chinese market and the agreed international market.

6, Sanfo outdoor will form a team, make the necessary budget, carry out product research and development, design, proofing, production scheduling and other work, X-BIONIC should give full support.

Sanfo outdoor promises that all production costs, production locations and production quantities will remain completely pparent to X-BIONIC.

Around the X-BIONIC product design, R & D and production, both sides promise to share resources and production plant resources with each other for their respective materials and accessories.

If Party B entrusts Party A to design and produce products for the third party, Party B will pay the cost of design, development and production arising therefrom and pay Party A 15% of the cost of production based on the cost of production.

7, X-BIONIC owns its trademark and patent rights, and Sanfo outdoor is authorized to use it based on this contract.

The intellectual property rights designed and developed on the basis of this contract belong to both parties.

8, the two sides agreed that for the retail price of the developed products in different countries, considering the pport and tariff factors, the price difference will not exceed 15% plus or minus the proposed retail price.

9. Brand licensing fee, production service charge, product production cost prepayment and payment.

10, Sanfo outdoor commitment: for Sanfo outdoor design research and development of key products, Sanfo outdoor will give sufficient orders to ensure that the factory minimum processing quantity.

11. The first term of validity of this contract is 10 years. From the date of signing the contract, the term of validity of the contract covers 2019FW to 2029FW production and sales season, and the two sides establish long-term strategic cooperative relationship.

18 months before the expiration of the contract, the two sides will negotiate to sign the next contract.

If 6 months before the expiration of the first contract, the two parties do not form a consistent written opinion on signing the second contract, the expiration of this contract shall be automatically terminated.

12. This contract shall be governed by and governed by Singapore's law.

The unsettled dispute of this contract is finally settled in arbitration according to the rules of the court of arbitration of the International Chamber of Commerce in Hongkong, and the arbitration language is English.

13, the contract is in four copies, each party holds two copies, and each party has the same legal effect after the signature of Party A and the signing of the legal representatives of both parties.

The signing of the Sanfo outdoor and X-BIONIC strategic cooperation contract has refined the Sanfo outdoor and X-BIONIC strategic cooperation framework agreement signed in March 30, 2019 in Beijing to the executive level. The two sides have made a clear agreement on the brand and patent technology sharing, resource input, related ownership and distribution of interests in product R & D, design, production and sales, and will launch a new series of products to China and the international market in the autumn and winter of 2019.

X-BIONIC has about 800 international patents. IF ranks nineteenth in global innovation. It won 34 German red dot design awards, 71 Plus X awards, and more than 600 international awards and test titles.

In the past five years, more than 1100 athletes wearing X-BIONIC technology products have won medals in major ice and snow events around the world.

Sanfo outdoor has a mature product design, R & D sales team and offline sales channels. The two sides are committed to deeply integrate high-end brands, patent technology, China's market scale and production and processing quality resources, and build a full range of X-BIONIC products that introduce high technology, high quality, truly enhance performance and improve the quality of life, and quickly expand the offline sales channels, thus creating a new strategic business segment for the company in a relatively short time, which will have a significant impact on enhancing the company's core competitiveness and improving its performance.