Li Ning Company Limited (“Li Ning” or the “Company”) has announced that its subsidiary, LN Co, has entered into a Subscription and Shareholders’ Agreement with Founder Co, HongShan Venture, HongShan Motivation, and the JV Company for the formation of a joint venture in the British Virgin Islands. The JV Group’s main objective will be to develop and operate the Li Ning Brand business exclusively in the Territory.
Upon completion, the JV Company’s total share capital will be HK$200 million, with LN Co, Founder Co, HongShan Venture, and HongShan Motivation contributing HK$58,000,000, HK$52,000,000, HK$62,728,000, and HK$27,272,000 in cash, respectively.
The Group has been focusing on the strategy of “Single Brand, Multiple Categories, and Diversified Channels” to enhance its competitive edge in the industry, especially in the Mainland China market. However, it also aims to expand into overseas markets, particularly in the Belt and Road regions. Recognizing the differences in business models and uncertainties in international markets, the Group has decided to collaborate with partners possessing extensive multinational resources.
HongShan, established in 2005, has vast investment experience and a professional team with cross-border networks. The formation of the JV Company will leverage Mr. Li’s leadership to steer the Li Ning Brand’s development in the Territory. The Company and Mr. Li will jointly hold 55% of the JV Shares, ensuring control over the JV Group. Additionally, HongShan’s resources and business experience are expected to accelerate the JV Group’s development.
The JV Parties will leverage their strengths, reputations, brands, talents, and resources to enhance the JV Group’s competitiveness and flexibility in business operations. In the short term, the Company will focus on increasing its market share in Mainland China and strengthening its brand competitiveness in key segments.
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