HK Imagi invests HK$36.4 million in Sino Light to expand “Pleasant Goat ” Branded Business and revenues

15 July 2011 14 h 24 min 5 comments

Hong Kong (13 July, 2011) – IMAGI International Holdings Limited (“IMAGI”, and together with its subsidiaries, is pleased to announce the subscription of shares in Sino Light Enterprise Limited, the licensee of the “Pleasant Goat and Big Big Wolf(喜羊羊與灰太狼)” brand to manufacture and distribute children’s wear, for a consideration of HK$36.4 million, via its indirect wholly-owned subsidiary Toon Express International Limited.

On 13 July, 2011, Toon Express has agreed to subscribe for certain shares in SLE for HK$36.4 million, of which HK$9.1 million will be settled in cash and HK$27.3 million by way of certain business support services to be provided by Toon Express to SLE. SLE has also granted an option to Toon Express to subscribe for additional shares in SLE.

SLE is currently 55% indirectly owned by Sandmartin International Holdings Limited (HKSE Stock Code: 482), and the remaining 45% is indirectly owned by Sino Light Group Limited. Upon the completion of the subscription, Toon Express would own 20.63% in SLE. Toon Express’s shareholdings in SLE would further increase to 29.58% if the option to subscribe for additional shares is exercised upon the completion of the subscription.

SLE is principally engaged in the design, manufacture, sales and distribution of apparel for children from 0 to 14 years old under the brand of “Pleasant Goat and Big Big Wolf”, a popular children’s cartoon TV series as well as the leading characters of three feature-length films to date in mainland China. In November 2010, SLE has entered into a non-exclusive license agreement with an affiliate of Disney Enterprises, Inc., the exclusive global master licensee of “Pleasant Goat and Big Big Wolf”, to manufacture and distribute, through establishing chain stores, children’s apparel under the brand for three years in mainland China. SLE has an option to renew the license for another three years.

IMAGI’s chairman Francis Leung Pak To said, “We are glad to secure another investment which will effectively promote and enhance the brand appeal of “Pleasant Goat and Big Big Wolf” in China. Through the nationwide retail network and the distribution and sale of the branded products, we expect to unleash further growth potentials of the “Pleasant Goat and Big Big Wolf” brand and boost the core consumer products licensing business of the Group.”

Over 1,100 “Pleasant Goat” retail outlets nationwide in three years

Mr Soh Szu Wei, CEO of IMAGI, said, “The subscription enables Toon Express to participate in the retail apparel business under the “Pleasant Goat and Big Big Wolf” brand and to further boost the brand’s exposure. SLE targets to open over 1,100 retail outlets including flagship stores, shops-in-shop and department store corners nationwide in three years. The first “Pleasant Goat and Big Big Wolf” flagship store is scheduled to open in September 2011. The establishment of the nationwide retail network would enhance direct interactions of the brand with consumers. By leveraging on the popular “Pleasant Goat and Big Big Wolf” characters, we believe the Group’s consumer products licensing business will benefit from the fast-growing animated entertainment business and children’s wear market in mainland China”.

As part of the consideration for the subscription, Toon Express will provide business support services in the scope of human resources, legal support, marketing and IT to SLE for three years.

Mr Leung concluded, “We aim to be a branded leader in the Greater China region and beyond through the development of its merchandising, lifestyle, media and entertainment products and services. With the latest investment, we are confident in our direction to transform the Group into an owner of leading brands in family entertainment while also broadening the Group’s revenue sources”.

ABOUT IMAGI
IMAGI International Holdings Limited (“IMAGI”) (Stock Code: 585) is a listed company on the main board of the Hong Kong Stock Exchange. IMAGI is a brand leader in Greater China region and Asia focusing on the development of its merchandising, lifestyle, services, media and entertainment products. Its wholly-owned subsidiary, Infoport Management Limited has entered into key commercial arrangements with two contractual partners, being Creative Power Entertaining LLC and Disney Enterprises, Inc. CPE is engaged in the development, production and distribution of audio and video programmes of several popular animation brands. CPE is also involved in publications, content development and licensing as well as stage shows and mobile carnival operations. Through these arrangements, Infoport, through its group of operating subsidiaries in Hong Kong and Mainland China, is able to develop a unique business model with an aim to tap into different business segments of the family entertainment industry in China as well as other parts of the world. Infoport and its group of operating subsidiaries are the leading brand managers in China’s animation industry. TE Group manages popular animation brands such as China’s No. 1 local brand “Pleasant Goat and Big Big Wolf (喜羊羊與灰太狼)”. Its consumer products licensing business is handled through Disney as its worldwide master licensee. TE Group also collaborates with its strategic partners in five other business segments which include animated TV, movies, stage shows, mobile carnivals, publications and interactive media. In addition to “Pleasant Goat and Big Big Wolf”, TE Group manages other brands such as “Happy Family”, “Cookie Master”, “Planet of Seven Colors” and “Legendary Soccer Kid”, with a focus on the consumer products licensing business.

[At the end of June, IMAGI announced its annual results with over 600 million HK$ losses. (See article on CSN²). On 6th July, IMAGI announced a new deal with Disney to produce a fourth film which will complete the Pleasant Goat franchise (See article on CSN²) ]

SOURCE: IMAGI (14/07/2011)

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