It is not an acquisition. In 2008, Li Nian Co., Ltd. obtained the exclusive franchise of the Italian sports brand Lotto.

Specific information:

In 2008, Li Ning Co., Ltd. issued an announcement and signed an agreement with the Italian sports brand Lotto Sport on July 31 to acquire the brand for a price of no less than HK$1 billion. The brand has an exclusive franchise in China for 20 years.

Lotto is a well-known Italian sports brand with famous Italian design and sports marketing resources focused on football and tennis. This move means that Li Ning Sports has taken an important step towards a multi-brand business strategy.

The announcement stated that Lotto Sport agreed to grant Li Ning Sports the exclusive franchise to use the Lotto trademark in China for the development, manufacturing, marketing, publicity, promotion, distribution and sale of licensed products in accordance with the franchise agreement. The franchise is valid for a period of From July 31, 2008 to December 31, 2028.

Starting from January 1, 2009, the annual license fee payable by Li Ning Sports will be calculated based on the percentage of actual sales of licensed products, and there will be a minimum amount every year. The minimum license fee payable within 20 years will be The amount is approximately 934 million yuan, equivalent to approximately HK$1.065 billion.

Currently, Lotto Sport has launched business in mainland China and has two companies, Lotto (Nanjing) and Lotto (Shanghai). Among them, Lotto (Nanjing) is mainly engaged in sports with the Lotto trademark in China. Product design, research and development, procurement, distribution and marketing, Lotto (Shanghai) is mainly engaged in the retail of products bearing the Lotto trademark in China.

In addition to the exclusive franchise, Li Ning will also acquire the assets, inventory and property goodwill of Lotto (Nanjing) and Lotto (Shanghai) for a price not exceeding 25 million yuan. Therefore, Li Ning Sports can obtain some retail outlets (18 sales counters occupied by Lotto in department stores in Beijing and Shanghai).

After the completion of this transaction, in addition to its own brand and AIGLE brand (outdoor sports products), Li Ning has added an international brand to its portfolio.