Bosideng (HKG:3998) Acquires PRC's Leading Ladies' Wear "Charming Point" To Further Expand Brand Portfolio and Enrich Product Mix

China's largest down apparel company, Bosideng International Holdings Limited ("Bosideng" or the "Company"; HKG:3998 PINK:BSDGF, together with its subsidiaries the "Group") announces further brand portfolio expansion to enrich its product mix. The Group's wholly-owned subsidiary Shanghai Bosideng Fashion Design Development Centre Co., Ltd. entered into an agreement with a famous ladies' wear brand in the PRC "Charming Point" on 29 September 2009.

Pursuant to the agreement, Bosideng will acquire 80% of the equity interests of Shanghai BoZi Enterprise Co., Ltd. at a maximum consideration of not exceeding RMB88,000,000. Upon completion of the transaction, Shanghai BoZi Enterprise Co., Ltd. will continue to focus on the design, distribution and management of the "Charming Point" brand. This is another major move of Bosideng to expand its product portfolio and enhances its range of non-seasonal apparel products, following the establishment of joint venture company to develop the Rocawear business in the Greater China region and the acquisition of the Bosideng menswear business.

"Charming Point" was established in 1999 and first launched in Shanghai in 2000. The brand was acclaimed as "The Most Fashionable Female Wear Design" by Shanghai Public Consumers in the same year of its launch. In the past decade, "Charming Point" has been devoted offering high quality ladies' wear through its strong research and development, merchandising, manufacturing, distribution and marketing. These concerted efforts, together with sound management and professionally run operations have made "Charming Point" a leader in the ladies' wear market with a rising market share in the past years. Currently, "Charming Point" owns over 200 retail points in the PRC, covering major cities such as Beijing, Shanghai, Xian and Hangzhou. Its products are also sold in Japan and Australia. After the completion of agreement, "Charming Point" will continue to be positioned as stylish brand with rapid product rollout to accelerate its pace of development in the PRC.

Commenting on the acquisition, Mr. Gao Dekang, Chairman and CEO of Bosideng, said, "The acquisition of "Charming Point" is an important step setting another milestone in our corporate development after the acquisition of Bosideng menswear business. The Board believes that it is an excellent investment in line with the Group's strategy of increasing profitability by enriching brand and product portfolios. Leveraging on our experiences in brand operation and apparel retail business in the PRC, we are confident that the "Charming Point" business will benefit from our strengths and grow rapidly in the Greater China region, generating excellent returns to our shareholders."

Issued by Porda International (Finance) PR Group for and on behalf of Bosideng International Holdings Limited.

About Bosideng International Holdings Limited

Bosideng International Holdings Limited (the "Company", together with its subsidiaries collectively referred to as the "Group") is the largest down apparel company in the PRC. Its retail distribution network comprises 5,662 retail outlets covering more than 65 cities across the nation, selling down apparel under its six core brands including "Bosideng", "Snow Flying", "Kangbo", "Bingjie", "Shuangyu" and "Shangyu". Through these brands, the Group offers a wide range of down apparel products targeting various consumer segments, strengthening and expanding its leading position in the PRC down apparel industry. According to China Industrial Information Issuing Centre ("CIIIC"), in terms of sales in 2008, "Bosideng", "Snow Flying", "Kangbo" and "Bingjie" down apparel products achieved a combined market share# of 39.5% in the PRC.

"Bosideng" was the leading down apparel brand in the PRC for 14 consecutive years from 1995 to 2008, according to the CIIIC and the National Bureau of Statistics of China. To further optimize its product mix and increase profitability, the Group has gradually begun to implement a "non-seasonal product" development strategy. In September 2008, the Group opened its first non-seasonal apparel specialty store in Changshu; in May 2009, the Group acquired a menswear company and made its entry into the menswear business. In the same month, the Group formed a joint venture company to engage in the sales, promotion and development of an international brand "Rocawear" in the Greater China Region.
# Among the 30 largest down apparel brands

 

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