GLONGHUI December 5 | Xinfeng Group (01223.HK) announced that on December 5, 2023, the company (as the buyer) and Itochu Excellent Fiber (as the seller) signed a share purchase agreement. According to this, the company has agreed to buy, and ITOCHU Premium Fiber has agreed to sell shares for sale, accounting for 25% of the total issued shares of New Ito at a cost of 1 million US dollars. The company will pay Itochu Excellent Fiber in cash before the deadline.
As of the date of this announcement, Shin-Ito is a non-wholly owned subsidiary of the Company, and the Company, ITOCHU Excellence Fiber, and ITOCHU hold 60%, 25% and 15% interests respectively. After completion, the company will hold 85% of Shin-Ito's interests, while ITOCHU will continue to hold 15% of Shin-Ito's interests, and Shin-Ito will continue to be a non-wholly owned subsidiary of the company.
Shin-Ito is a joint venture company incorporated in Hong Kong. It is responsible for the company's joint ventures with ITOCHU and ITOCHU Premium Fibers. The main business of the Shin-Ito Group is the design, manufacture, marketing and distribution of “SKINS” compression and high-performance sportswear.
Shin-Ito is currently a 60% subsidiary of the company and has a stable and extensive sales and distribution network. Since the establishment of Shin-Ito's joint venture in December 2020, Shin-Ito has equipped the Group with a huge supply chain network, promoted logistics and inventory monitoring, and provided effective sales channels for “SKINS” products. Looking forward to the future, the Company plans to continue to expand the “SKINS” business by acquiring more interests in Shin-Ito through acquisitions. The board of directors believes that the acquisition will further strengthen the Group's control over the Shin-Ito Group and improve operating efficiency.