Forms JV to Conduct International Brand Rocawear Business in Greater China Region
Hong Kong, May 29, 2009 AEST (ABN Newswire) - China's largest down apparel company, Bosideng International Holdings Limited ("Bosideng" or the "Company"; stock code: HKG:3998 PINK:BSDGF), together with its subsidiaries the "Group"), announced that it has made further inroads in expanding its brand and product portfolio. It has entered into a JV Agreement with Iconix China Limited ("Iconix" or the "JV partner") on 28 May 2009 for the establishment of a joint venture company ("Joint Venture Company") which will conduct the Rocawear business and develop the Rocawear brand in the Greater China Region which comprises the PRC, Hong Kong, the Macau Special Administrative Region and Taiwan.
The Joint Venture Company will engage in the production, sale and promotion of "Rocawear" branded men's and women's apparel and accessories. Bosideng will have a 78% stake upon its establishment. This is the second acquisition Bosideng has made this month in further enhancing its range of non-seasonal apparel products, following the acquisition of the menswear business earlier this month.
Commenting on the formation of the Joint Venture, Mr. Gao Dekang, Chairman and CEO of Bosideng, said, "The establishment of the Joint Venture Company marks a major milestone in our corporate development. Rocawear will be the first internationally renowned brand that Bosideng will actively engage as part of its sales, marketing and brand building initiatives within the Greater China Region. The board of directors considers this to be a good investment opportunity and is in line with the strategy of improving profitability by enhancing our brand portfolio and product mix."
Bosideng intends to launch Rocawear men's and women's products by 2010 through the Joint Venture Company and further develop the Rocawear brand in the Greater China Region by opening approximately over 300 Rocawear free-standing stores and shop-in-shop concepts within the next three years under suitable business conditions.
Rocawear is a dominant lifestyle apparel brand for a wide range of customers, with annual retail sales over US$700 million. By incorporating international impulses into the Rocawear style, the brand has expanded its appeal beyond the national borders and has become a brand of international significance. As a result, Rocawear boasts distribution in the US, UK, Japan, Canada, Europe, Brazil, Korea, Middle East, and Russia. Rocawear defines the lifestyle for today's young hip consumer and provided the efficient business acumen to retail partners that is necessary to be successful.
The JV Partner is a joint venture between the Iconix Brand Group Inc. and Novel Fashion Holding Limited. It focuses primarily on the development and expansion of the Iconix portfolio of brands in the Greater China Region. Iconix Brand Group Inc. owns and markets a growing portfolio of consumer brands, including the Rocawear brand, worldwide and in particular in the US. Upon establishment of the Joint Venture Company, the JV Partner will enter into a trademark transfer agreement with the Joint Venture Company, pursuant to which the JV Partner will transfer the title of its trademarks which are registered (or pending registration) in the Greater China region and which are relevant to the Rocawear business to the Joint Venture Company.
Upon establishment of the Joint Venture Company, Bosideng, through its subsidiary, will enter into a shareholder's loan agreement with the Joint Venture Company, pursuant to which Bosideng BVI shall extend a loan of up to HK$80 million to the Joint Venture Company for business development, working capital and general corporate purposes. "With a wealth of experience in brand marketing and apparel retailing in the PRC market, we are confident that the Rocawear business will benefit from our expertise and develop rapidly in the greater China market. We look forward to introducing products of this unique brand to consumers shortly," Mr. Gao added.
Issued by Porda International (Finance) PR Group for and on behalf of Bosideng International Holdings Limited.
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