Buying agency agreement with Disney Sourcing
and two new e-commerce projects underway
Hong Kong, 18 September 2000 - A Special General Meeting (SGM) of Li & Fung Limited [SEHK:494], the Hong Kong-based global export trading house, today approved a proposal to subdivide each of the existing issued and unissued shares of HK$0.05 each of the Company into two subdivided shares of HK$0.025 each. The proposal is aimed at improving the market circulation of the Company's shares.
Following the subdivision and for adjustment purpose, a temporary counter for trading of the Company's shares will open from 10:00am on 19 September 2000 on the Stock Exchange of Hong Kong. Shares will be traded under the stock code of 2923 at the temporary counter until it closes at 4:00pm on 26 October 2000.
After the SGM, Group Managing Director Mr William K Fung commented on the latest developments of the Company.
"Following the inclusion of Li & Fung in the Morgan Stanley Country Index for Hong Kong on 17 May and the Hang Seng Index on 2 August this year, Li & Fung is honoured and gratified to be included in the Hong Kong section of the FTSE World Index effective today," said Mr Fung.
Li & Fung also announced that the Company has applied for a quotation on SEAQ International, the London Stock Exchange's trading service for international equities. It is expected that the quotation would commence after the parallel trading period for the share subdivision process. The move will allow the Company to benefit from the exposure to a wider international investor base.
Li & Fung announced that it has entered into a non-exclusive buying agency agreement with Disney Sourcing, a division of Disney Worldwide Services, to assume responsibility for the sourcing of consumer products for Disney Stores worldwide and U.S. Disney Parks and Resorts.
Under the agreement, Li & Fung will assume responsibility for sourcing operations currently performed by Disney Sourcing in five Asian locations - Hong Kong, Guangzhou (China), Bangkok (Thailand), Manila (Philippines) and Singapore.
"We feel very privileged to have this opportunity to source product for Disney," said Mr William Fung. "We hope this agreement will be the first step toward a mutually beneficial relationship between Disney Sourcing and Li & Fung.
"Li & Fung hopes to expand sourcing opportunities for Disney products by making its vast network of 47 offices in 32 countries available to Disney Sourcing, " continued Mr Fung.
According to Mr Fung, the agreement contemplates payments to Li & Fung based upon an expected additional annual turnover of approximately US$285 million (HK$2,223 million). For the year to 31 December 1999, the Group's turnover was US$2,089 million (HK$16,298 million).
Mr William Fung also revealed that Li & Fung had embarked on two new e-commerce projects that will capture new opportunities for the Group. YetiMo.com, a joint venture between Li & Fung and Lion Nathan Limited of Australia, is being formed to supply corporate promotional merchandise through a web-enabled interface.
Lion Nathan Limited is an internationally renowned brewer with principal facilities in Australia, New Zealand and China brewing for leading beer brands. YetiMo.com will profit from Lion Nathan's strategic relationships in the beverage industry, and open up a totally new market segment for Li & Fung's sourcing and merchandising services.
In addition, Li & Fung will launch an online initiative, Electronic Stock Offer (eSO), to offer excess inventories of its 6,000-strong supplier base to several large discount retailers. eSO will provide a much needed service and assistance to Li & Fung's existing suppliers left with inventories resulting from over production or order cancellations.
Commenting on the new Internet initiatives, Mr Fung said, "These two new e-commerce projects illustrate our policy to embrace Internet technology in all aspects of our business to create new opportunities. We will continue to enhance our supply chain management services, and to leverage on our vast sourcing network."
Li & Fung Limited is today one of the premier global consumer products export trading companies managing the supply chain for high-volume, time-sensitive consumer goods, including garments, fashion accessories, toys and games, sporting goods, furnishings, handicrafts, shoes, travel goods and tableware. These goods are sourced through a network of offices in over 30 countries for customers in the US, Europe and Asia.
|For further information:|
|Scotchbrook-BSMG Worldwide (Hong Kong) Ltd||Telephone: 2877 3939|
|Fannie Mok||Direct line: 2863 9119|
|Carson Chan||Direct line: 2863 9117|
Corporate website: www.lifung.com
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