Shanshan Brand (01749) spent 9338,007 million yuan to acquire trademarks

Zhitong Finance App News, Shanshan Brand (01749) announced that since 2021, the company has signed multiple trademark license agreements with Shanshan Group. The Group has been granted trademark licensing rights for the period specified in each trademark license agreement. The current trademark license agreement is valid until December 31, 2029.

According to the restructuring plan approved by the People's Court of Yinzhou District, Ningbo City, Zhejiang Province, certain assets (including trademarks) of Shanshan Group have been sold through public auctions in accordance with applicable Chinese laws and regulations. In view of the Company's intention to continue using the trademark in its existing sublicense business, it participated in the public auction and was confirmed as the winning bidder for the trademark on September 28, 2026. The bid price was RMB 9338,007 million.

The Company will sign an auction transaction confirmation with the manager on the terms of the Company's successful bid for trademarks and acquisitions on or before October 26, 2026.

According to the announcement, trademarks refer to 29 trademarks related to “fabrics, textiles, sheets, tablecloths, carpets, flooring, sheets, tablecloths, carpets, flooring, sheets, linoleum and other floor covering materials, non-textile wall coverings”, including the “Sugi” and “FIRS” brands (Class 24 and Class 27), as stipulated in the trademark license agreement and auction transaction confirmation.

The company is mainly engaged in the apparel business. Among them, the home wear series is an integral part of the business. The company has been leasing trademarks from Shanshan Group in the past, and has obtained stable license revenue by re-licensing the trademark to an independent third party. Given that such arrangements have been successful and profitable in the past, the trademark acquisition will allow the company to continue and further develop this business segment.

The Company believes that the discounted cash flow method is the most appropriate valuation method because the value of the trademark mainly comes from future income expected to be generated through the Company's sublicensable business. Although the license fee previously paid by the Group to Shanshan Group for trademarks is an important reference, once the acquisition is completed, the Group will no longer have to pay the license fee to Shanshan Group. The license fee paid to Shanshan Group did not fully reflect the anticipated future cash flow from sublicensing the trademark to an independent third party, nor did it reflect the costs associated with maintaining and operating the business. Therefore, the valuation is based on the predicted benefits of the sublicensable trademark and the estimated costs and expenses to be incurred, and the Company believes this is a fair and reasonable basis for evaluating the fair value of the trademark.