Yongjia Group Invested 233 Million To Acquire Diadora Trademark Franchise.

In April 7th, Yongjia group announced the launch of a joint venture with Italy sports equipment, clothing and footwear manufacturer Diadora, which will manufacture, sell and distribute products with Diadora merchants in Hongkong, the mainland, Taiwan and Macao. Yongjia will account for 60% of the joint venture company's total capital, with a total capital commitment of US $30 million (about HK $233 million), while Diadora will be injected into the trademark right to use.

At the same time, the joint venture will pay the price of 6 million 930 thousand yuan to the original Diadora franchisee for the first Desheng acquisition of sports apparel products, including clothing, accessories, footwear and other inventory and account debts, which will be allocated by its internal resources.

First, Desheng announced that the termination of the original concession agreement with Diadora would cost US $3 million. The company believes that the termination of the business will allow the company to concentrate its resources on export business and explore opportunities. The proceeds will be used to repay part of the bank loans and improve working capital.

The original concession agreement, which lasted for 5 years, expired at the end of December 2009.

Yongjia Group Holdings Limited is a listed limited company in the British Cayman Islands. It is listed in Hongkong. Its headquarters is located in Hongkong. Its factories are located in various parts of Asia, including China (Guangdong Dongguan, Huizhou, Kaiping, Heyuan and Yunfu, Guangxi Guangxi, Guangxi and other places), Vietnam and Jordan. Sales joint venture, holding or wholly owned subsidiary companies are located in Hongkong, Guangdong, China, etc., with over 15000 employees in 2007.