In favor of multi-brands development strategy, Li-Ning company announced that it has held shares of Double Happiness company(DHS).In late 15, November, it said that Li-Ning had spent 305 million RMB totally in acquisition of DHS 57.5% stake shares After agreement completed,, DHS will be a indirect non-wholly-owned subsidiary-company of li Ning Company.
According to the China‘s accounting standards, the pretax profits of DHS were 22.1 million RMB in 2005 and 38.483 million RMB in the end of December 2006,and at the same period of time, the after-tax profits were 18.842 million and 25.052 million RMB .The net assets of DHS was 134 million RMB in 2006.
On 1st,April,, li-Ling introduced its first sub-brand-“New Sport” to the market, and promoted in some nation-wide chain supermarkets like Carrefour, Wumart. This is also one very important step of its multi-brands development strategy According to the 2006 Annual Performance Reports, its annual turnover was up to 3.18 billion Yuan, 29.8% higher than former. Among them, the Sales of footwear, apparels, accessories and other products occupied to 99.6% of annual turnover This displayed its brands over-concentrated status. Li Ning said the acquisition of DHS Will rapidly enhance its position in china’s rapid growing table tennis and badminton products market, further promote Ling-Ning professional image and achieve its multi-brands development business strategy.
Li-Ning is the leading domestic enterprises of the sporting goods, with its own brands, research and development capability, its business scope involves in manufacture, distribution and retail. Double Happiness Group is mainly engaged in reach-development, manufacture, marketing distribution, and distribution of its own brand “DHS” in table tennis and badminton equipments .It is China‘s largest table tennis equipment manufacturer as well as sponsors of a number of international championships and world-class Chinese table tennis players.