China Intends To Purchase KAPPA Rights

China's trend (3818) announced the full year performance as of 07, and recorded a net profit of 734 million yuan (the same below), a 1.39 fold increase.

Earnings per share were 15.89 points, sending a final interest rate of 1.09 points, and the closing date was 8 to 15 days in May, and the dividend date was to be determined.

Chen Yihong, chairman of the company, said that in the long run, he would consider acquiring the ownership of "KAPPA" in Italy.

The company also announced that it signed a letter of intent with ORIX Corporation to acquire all the rights and interests of the Japanese company Phenix Co. and Ltd. and obtained the sole right to negotiate. If agreement is reached, the parties will establish a formal agreement on or before April 25th.

Chen Yihong said that the intention of acquiring the company is still under due diligence, so the total purchase price has not yet been implemented, but it is inclined to pay in cash and there is no plan to issue additional shares.

He said that the acquisition will enable the company to acquire its skiing and sportswear brand and enjoy the "KAPPA" Japanese district agency, in line with the company's development of multi brand and internationalization strategy, and also conducive to synergy.

Chen Yihong said that the company is interested in acquiring the ownership of the "KAPPA" Italy District in the long run.

Wang Zhiqiang, chief financial officer, said that the company's capital expenditure this year was 140 million yuan, of which 10 million yuan was raised by fixed asset investment and computer system, and 60 million yuan was used for prepaid rent of 10 flagship stores, and 70 million yuan was used for the expenditure of headquarters in Beijing.

Wang Zhiqiang said that because the sales of shoes products had a certain impact on the image of the sports Brand Company, the company changed its strategy and increased the proportion of shoes products to turnover.

Last year, the proportion of footwear products to total turnover increased from 20% to 24%, while the proportion of sportswear sales decreased from 76% to 72%.

He added that the target increased the proportion of footwear products to 30% in two to three years, while the proportion of sportswear sales dropped to 65%.