Si Jie Universal Joint Venture With GXG Parent Company Mousse Group

In December 1st, the Esprit parent company Global Holdings Limited announced that the Affiliated Companies, Wancheng Resources Co., Ltd., an indirect wholly owned company (hereinafter referred to as "Wancheng resources"), entered into a joint venture agreement with mosang Group Holdings Limited (hereinafter referred to as "Mu Shang Group") and will take effect from December 2, 2019.

According to the terms of the joint venture agreement, the moussing group and Wancheng resources have agreed to set up a joint venture in mainland China for the purpose of engaging in other Esprit businesses that may agree with clothing, clothing accessories and joint venture parties. The registered capital of the joint venture shall be 100 million yuan, and Mu Shang Ji invested 60 million yuan, holding 60% interest. Wancheng resources invested 40 million yuan, holding 40% rights and interests.

The joint venture's business scope will include, but not limited to, general merchandise, clothing and accessories, shoes and hats, leather goods, sporting goods, cosmetics, retail, wholesale, import and export, and commission agents (except auction), and provide related services.

For the purpose of setting up a joint venture, the announcement said China has always been an important pillar of Si Jie's strategic plan. The joint venture has signed a joint venture agreement to work together to manage the group's business in China. The transition from China's business to joint venture is expected to be completed in June 30, 2020. As part of the transition, Si Jie will close some shops or transfer the assets of the remaining Chinese shops to the joint venture company. In addition, the Board believes that this transaction creates a sound foundation for Esprit to improve brand relevance and speed up growth.

Sky eye shows that Si Jie universal is a Hongkong Invest-holding Company, which is mainly engaged in garment business. Its main business includes retail, wholesale, distribution and authorized operation of "Esprit" and "EDC" brand garments and non clothing products, including men's wear, women's wear, children's wear and shoes.

It is reported that Mu Shang Group is a fashionable men's clothing company headquartered in China. Its online channels are mainly men's clothing. The products of moshang group are divided into GXG series and sportswear series. The main brands include GXG, gxgjeans, gxg.kids, Yatlas and 2XU. In May 2019, Mu Shang Group went public in Hong Kong stock market.