Li Bang Was Authorized By Beckham Brand To Soared 52.31% A Day.

Recently, the old brand

company

(00891, HK) announced that the company signed an agreement with Beckham and obtained the franchise of the other party's brand.

With the news, the company's long-standing stock price soared 52.31% in a day, and the company's market value increased by HK $500 million in a day.

Authorized by Beckham brand

The announcement shows that in September 15th, Li bang, a wholly owned subsidiary of Li bang, and Seven Global (as an authorized person) and Beckham (as a concessionary property owner) entered into an authorization agreement. Seven Global agreed to grant the exclusive rights and privileges granted to the international group. The authorization applies to the global promotion, promotion and endorsement of the products, and can also be used for the design, manufacture, purchase and distribution of products, or the distribution of other Beckham products in the Kent&Curwen retail store of Li bang.

no matter

How much, Li Bang needs to pay the royalty, the first year is 3 million 500 thousand dollars, the fifth year has increased to 7 million 250 thousand US dollars, and if the annual sales volume exceeds 100 million US dollars, Li bang should also pay the 5%~10% of the sales amount as the patent fee, but the total amount does not exceed 60 million HK dollars.

It seems that the gold medal of Beckham is still valuable.

In December 2014, foreign media reported that Beckham, following his wife's footsteps in Vitoria, launched his latest brand with Simon Fuler and authorized the brand to Hongkong Li Feng Group.

Fuler has become a business partner with the Beckham family since the "Spice Girls" period, leading Victoria Beckham to become the world's attention brand.

At present, Li Bang has received the authorization from the affiliated company.

According to the announcement of Li bang, Seven Global was established in May 29, 2015 as a joint venture between Li Biao and Beckham and its Fuler company.

The announcement said that the establishment of Seven Global aims to continuously promote the development of Beckham brand in the world and will cooperate with other famous sports and entertainment giants and brand equity holders to create a large global brand.

The authorization announcement was issued before the opening date. At the close, Li Bang's stock price closed at HK $0.99, up 52.31% from the previous trading day. The market value of the company was HK $1 billion 730 million, an increase of nearly HK $500 million compared with the previous trading day.

Poor performance in recent years

Although share prices soared yesterday, Li Bang's share price remained below HK $1.

Once upon a time, Li bang was also a big bull stock on the Hong Kong stock market.

From the end of 2009 to the end of 2010, the company's share price rose from HK $2 to HK $8.94, the highest increase of over 300%.

Unfortunately, after that, share prices went down all the way, leaving only the most expensive ones.

Data show that Li Bang is mainly engaged in Greater China and Europe.

The retail and wholesale businesses of the brand also operate its own brand globally.

2014 annual report shows that the company's existing Kent&Curwen, Gieves&Hawkes, Cerruti 1881 and D 'URBAN four menswear brands, currently in the Greater China 65 cities have 390 shops.

In recent years, the company's performance has not been improved. In 2011~2014, the company's revenues were approximately HK $2 billion 600 million, HK $2 billion 800 million, HK $2 billion 700 million and HK $2 billion 600 million, while the annual profits were HK $513 million, HK $540 million, HK $308 million and HK $161 million respectively.

In the first half of this year, the results showed that the company's revenue in the first half of 2015 was HK $1 billion 6 million, down 20% compared with the same period last year, while operating profit has turned into a loss, with a loss of HK $66 million.

To this end, the Bank of Hong Kong International released a report that profits fell more than expected, and for the first time since the listing did not send medium-term interest, sales and profit pressures lingering, the annual performance expectations are worrying, so the company lowered the target price to HK $0.8.

For this brand licensing, Li Bang obviously has high hopes.

The company claims that Beckham is from the United Kingdom and is also a prominent figure in the international sports arena.

The director of the company believes that with the participation of Beckham, the authorization of the Kent&Curwen brand will move forward. The legendary charm of Beckham will benefit the company.

In addition, Beckham is expected to attract a lot of potential franchisees and franchisees to pay attention to the brand of the company and help expand the brand globally.