CEFC Financial Proposes Change of Company Name to Virtual Mind Holding Strategically Transforming to be an All-rounded Trendy Apparel Product Manufacturer
The proposed change of company name is subject to the approvals of shareholders and the Registrar of Companies in the Cayman Islands.
Entering into Strategic Cooperation Agreement with Qingdao Weiding Sports Supplies
with Appointment of the Senior Designer of LVMH Group as Chief Creativity Officer
HONG KONG, Jan 11, 2022 - (ACN Newswire) - CEFC Hong Kong Financial Investment Company Limited ("CEFC Financial", together with its subsidiaries, "the Group"; stock code: 1520.HK) is pleased to announce its proposed change of company name to "Virtual Mind Holding Company Limited", to better align with the Group's business development strategies. Meanwhile, the Group has entered into a strategic cooperation agreement ("cooperation agreement") with Qingdao Weiding Sports Supplies Company Limited ("Qingdao Weiding") in trendy apparel markets, and appointed the senior designer of the world luxury product brand LVMH Group Dr. Zhou Yibing ("Dr. Zhou") as Chief Creativity Officer ("CCO"), striving to become an all-rounded trendy apparel product manufacturer. The proposed change of company name is subject to the approvals of shareholders and the Registrar of Companies in the Cayman Islands.
Establishment of strategic cooperation relationship with Qingdao Weiding to seize the opportunities in trendy apparel market in the PRC
The recent development in the apparel industry has been shifting its focus towards the market segment in the younger generation with trendy culture. Therefore, the Group aims to capture this opportunity with a vision to develop trendy culture apparel products and has been actively seeking new business opportunities to expand the Group's design, manufacturing and trading of apparels business in order to diversify from its focus of manufacturing private label women apparels products to become an all-rounded trendy apparel product manufacturer, tapping into the men and young adults markets. To achieve its strategic moves and pursuant to the cooperation agreement , the Group and Qingdao Weiding will (i) carry out in-depth research and development on trendy apparels' intellectual property ("IP") and trendy apparels products; (ii) coordinate the resources, sales channels and marketing activities to increase market competitive advantages; (iii) share customer information, recommend customers to each other and provide services to each other's customers for product introduction and promotion; and (iv) jointly develop new products, new businesses and new business models in the trendy apparel market. Both parties shall promote and refer to each other (i) third-parties fashion apparel orders; (ii) application of non-apparel trendy brand related products in each other's branded products; (iii) application of branded products of the parties in cross-over collaboration with other branded products. A referral fee shall be payable by the referee to the referrer based on the successful contract amount of the apparel order, on the conditions that a certain amount of sales and a corresponding gross profit margin are achieved. Qingdao Weiding shall promote to the Group its own brand "Weiding" orders and offer a discounted contract price to the Group based on the final retail price.
Qingdao Weiding is principally engaged in the research and development, production and sales of trendy and sports apparel and accessories products. It has been granted the famous trademarks of Shandong Province award and Qingdao award and has obtained the ISO9001 qualification certification. The cooperation would enable the Group to leverage the design experience and market knowledge of the management team of Qingdao Weiding on the sports apparel in both women's and men's markets and expand the Group's exposure in these market segments. The Group could also share the customer information and have an in-depth understanding on the markets and access to new sales channels. Moreover, the Group could exploit the IP rights owned by Qingdao Weiding in developing the cross-over trendy apparel products which could increase the variety of the Group's products to seize the opportunities in the trendy apparel markets in the PRC.
Appointment of Dr. Zhou Yibing, senior designer of LVMH Group, as CCO to create unique fashion apparel products
In addition, the Group has appointed Dr. Zhou Yibing ("Dr. Zhou") , the senior designer of LVMH Group, as the Group's CCO. Dr. Zhou has served as a designer of Givenchy since 2018 and she was promoted to senior designer in 2020 and double WRTW-star senior designer in 2021. Prior to joining Givenchy she worked as a designer in Balmain Group and was responsible for fancy jewelry in Buccellati Italy. Dr. Zhou will be responsible for managing the product design team of the Group through the recruitment of a team of young and talented designers, with the aim of capturing the market opportunities in the younger generation, developing own brand trendy culture products including apparels, cross-over products with other brands in order to enhance the Group's strategic move to re-foucs from its women apparel products to all-rounded trendy apparel and other accessories products for men, women and young adults.
The Group has been engaged in the apparel design business for over 20 years and is committed to designing and manufacturing high-quality fashion products. In view of the enormous potential in the trendy apparel market, the management of the Group plans to progressively expand the Group's trendy apparel manufacturing business in future and strategically transform its business from private label women's apparel manufacturer to an all-rounded trendy apparel product manufacturer. The management is pleased to establish cooperation with Qingdao Weiding and has invited Dr. Zhou to join its product apparel design team. These moves will complement the Group's overall strategic development blueprint and enhance its operating strategy. Leveraging the technology, experience and sales channels accumulated by the Group in the design and manufacturing of apparel business, the Group is expected to further expand its market segments on top of its original business and develop a variety of new apparel and apparel-related product offerings, thereby enhancing the Group's profitability and brand impact to create long-term returns for shareholders.
About CEFC Hong Kong Financial Investment Company Limited
CEFC Hong Kong Financial Investment Company Limited (1520.HK) is principally engaged in (i) design, manufacturing and trading of apparel; and (ii) provision of money-lending business. The Group's apparel operation is classified into two categories, namely, private label products and own brand products. Private label products are those designed and manufactured under the private labels owned or specified by the Group's customers, while own brand products are those designed and manufactured under the Group's proprietary labels. The Group's production plant is located in Jiaxing in the PRC with most apparel products exported to the U.S. The U.S. market is the principal market for Group's apparel operation.
For more details, please visit www.cefcfi.com.hk
Source: CEFC Hong Kong Financial Investment Company Limited
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