China trend from Li Ning to China trend

200 1, Li Ning Company, a leading domestic sporting goods supplier, entered the stage of comprehensive strategic adjustment. Under the leadership of Chen Yihong, then general manager, Li Ning Company established its subsidiary Beijing Trend, and its development strategy was to act as a multi-brand agent for international sportswear, with Kappa as the first agent brand. On February 14, 2002, Beijing Chaoliu signed a franchise agreement with the actual owner of Kappa brand, Italian BasicNet Group. Li Ning, through its subsidiary Beijing Trend, exclusively distributes Kappa brand products and related products and technologies in Chinese mainland (including Macau, but excluding Hongkong and Taiwan Province Province), with an agency period of five years.

In 2005, Li Ning repositioned the company's strategy: vigorously expand its own brand business; Through acquisition or long-term cooperation with international brands, we will develop other products that are differentiated and complementary to the positioning of the company's own brand products, and realize the development goal of Li Ning's multi-brand business. Because the product market positioning of Kappa and Li Ning is basically the same, and BasicNet Group is unwilling to sign a long-term cooperation agreement or acquisition agreement, Li Ning Company decided to give up the exclusive agency right of Kappa brand in China market, while Chen Yihong chose to take over Beijing Trend.

In June, 2005, after consultation with BasicNet Group, Li Ning Company transferred 80% equity of Beijing Dongxiang Company (with exclusive agency of Kappa brand) to Shanghai Titan at a price of 8610.4 million yuan, and Chen Yihong, former general manager of Li Ning Company, became the actual controller of Kappa's agency in China. On September 1 day, 2005, Chen Yihong officially resigned from the board of directors of Li Ning Company, and fully operated Jinghua Trend independently.