Anta Sports announced on May 19th that it had signed an agreement with Jiangsu Hesheng Investment Guarantee Co., Ltd. on the disposal of sale of Shanghai Fengxian and its subsidiaries for the aggregate purchase price of approximately RMB187.4 million. Shanghai Fengxian and its subsidiaries were established to manage the international brand retail business of the Group.
As recorded for the financial year ended 3 December 2007 and in the Company's audited financial statements for 2007, the revenue originating from ANTA brand sporting goods substantially outweighed the revenue from distribution of sporting goods of international brands operated by Shanghai Fengxian and its Subsidiaries.
The Directors consider that it is beneficial to the Group to focus on its business of sportswear brand management in the future and dispose the retail business of distributing international brand sporting goods, which were managed by Shanghai Fengxian and its Subsidiaries. Furthermore, in view of the rising competition in the distribution and retail market in the PRC, the Directors consider the Group's business of sportswear brand management and product design will provide higher profit margin than the distribution and retail business.
As recorded for the financial year ended 3 December 2007 and in the Company's audited financial statements for 2007, the revenue originating from ANTA brand sporting goods substantially outweighed the revenue from distribution of sporting goods of international brands operated by Shanghai Fengxian and its Subsidiaries.
The Directors consider that it is beneficial to the Group to focus on its business of sportswear brand management in the future and dispose the retail business of distributing international brand sporting goods, which were managed by Shanghai Fengxian and its Subsidiaries. Furthermore, in view of the rising competition in the distribution and retail market in the PRC, the Directors consider the Group's business of sportswear brand management and product design will provide higher profit margin than the distribution and retail business.
