Lining "Swallowed" The Old Hongkong Castle Dragon Consumer Goods Market?

Recently, Lining, holding the extraordinary China and the Hongkong leisure clothing brand burshilong, issued a joint announcement. The two sides have signed the share purchase agreement. The extraordinary China will buy about 66.6% stake in burshlung by 46 million 620 thousand HK dollars through a subsidiary holding 80% VC Consumables.

After completion, burshlung will become an indirect and non wholly owned Affiliated Companies in China. The financial statements of burshlung will be incorporated into the extraordinary China.

Statistics show that burshalon was born in 1987. It was founded by Hongkong's "knitting king" Luo Ding bang. It once became the same name as Giordano and Baleno, and was listed on the stock exchange in 1993. It was once a synonym for "fashionable high street".

Unfortunately, from 2015 onwards, the performance declined all the way, and gradually declined. 2017/2018 lost money in the financial year, and the losses increased thereafter. In the second half of 2019, revenue has shrunk to about HK $700 million, down 20% from a year ago, and the net loss expanded to HK $100 million.

Despite its declining brand, in the past twenty years, burlung has established a broad international operation platform and distribution network. As of December 31, 2019, burshlung has 287 direct outlets and 799 export franchised stores in 30 countries and regions.

For this acquisition, extraordinary China believes that it will play a synergy between burshlung group and consumer goods business (marketing, supply chain solutions and distribution channels in China). At the same time, the ambition of China to expand and expand the consumer goods market is fully revealed.

According to its 2019 annual report, the extraordinary China has formulated a long-term business strategy, including sports experience and sports and leisure life consumer goods two businesses, of which sports experience business for its core sports business, 2017-2019 years recorded a compound annual growth rate of about 36%. The latter business has not recorded any revenue in the previous year.

But the prospect of sports related consumer goods market is beyond doubt, and will be regarded as one of the major concerns of China in the coming years. In order to gain a firm foothold in the market as soon as possible, extraordinary China is actively looking for and looking for opportunities, especially about sports, life and leisure related apparel and footwear brand acquisition opportunities. On the other hand, it has established relevant operation teams and gained some results last year.

In June 2019, extraordinary China acquired LNG brand, focusing on young consumer groups. Subsequently acquired the 80% ownership of Snake, and changed its name to LNG electronic economic club. The LNG competition team won good results in many league matches last year. Extraordinary China aims to raise the brand awareness of LNG through this move.

The acquisition of burshlung, the extraordinary China board, intends to expand Lining's distribution network to other cities in China through extensive business contacts and strong business positions in sports related and apparel industries.

In the first quarter of 2020, China's consolidated income was HK $178 million, a year-on-year decline of 48.1%.