Promote Channel Development ABC Children'S Clothing Enterprises Start 120 Million Stake For Dealer Guarantee

On the evening of January 14th, the announcement of the ABC KIDS parent company of the famous domestic children's clothing brand issued the announcement on providing guarantee for the credit of the dealer Bank of the company. The board of directors of the initial share Board agreed to provide the guarantee for the qualified dealer's credit limit in the designated Bank under the premise of controllable risk. The dealer's financing under the credit line is used to pay the purchase money to the company, and it can't change the usage. The total amount of the guarantee is not more than 120 million yuan. The guarantee contract is specifically based on the bank's guarantee contract, and the guarantee period is one year.

In fact, this is not the initial guarantee for initial shares.

As of January 14th, the total external guarantee amount of initial shares and wholly-owned subsidiaries amounted to less than 620 million yuan (excluding the guarantee), accounting for 44.36% of the audited net assets at the end of 2017.

For the start of the shares guarantee for dealers, the board of Directors believes that this can promote the company's channel business development and achieve win-win results between the company and the distributors. Under the premise of effective control of risks, it helps dealers solve the problem of shortage of funds, expand sales scale, further establish long-term good cooperative relations with distributors, enhance the market competitiveness of enterprises, help accounts receivable withdraw, increase the liquidity of company assets, and achieve the win-win situation between companies and distributors.

In the view of the independent board of independent stock, this will not only help dealers solve the problem of shortage of funds, but also expand sales scale.

Moreover, it can strengthen cooperation with downstream dealers and enhance the market competitiveness of the company.

Prior to this, the initial shares to strengthen the channel business development, in December 2018 to be 200 million yuan to acquire Zhui technology 11.43% stake.

At that time, the initial shares said in the announcement that this will be conducive to the development and expansion of the company's business and expand the sales channels at home and abroad, in line with the company's strategic development direction, and enhance the company's business performance.