Another Chinese company, specializing in retailing and the operation of shopping malls, Symphony Holdings, has created a dedicated unit in the U.S., TKK Symphony Acquisition, for the purpose of financing mergers and acquisitions in the sporting goods sector or any other in any country. The company, which began trading on Nasdaq a year ago, said it has raised $220 million through a public offering so far, with an over-allotment option for an additional $33 million.
Separately, Symphony revealed that it is currently exploring new opportunities for cooperation with Itochu, which recently took over control of Descente. Symphony and Descente already cooperate in the distribution of Arena in China. In addition, Symphony markets Pony in the country.
The two brands contributed revenues of 8.9 million Hong Kong dollars (€1.0m-$1.1m) in the first half of this year, 36 percent down from the year-ago period. This was more than offset by an 18 percent gain in the retailing and sourcing business to HK$ 108.4 million (€12.5m-$13.8m), leading to a slight increase in total revenues to HK$ 193.8 million (€22.3m-$24.7m).
The comprehensive net income jumped to HK$ 62.9 million (€7.2m-$8.0m), partly aided by a positive currency effect in foreign operations. Excluding special items, net earnings rose by 14 percent to HK$ 39.0 million (€4.5m-$5.0m), driven by an increase of 2.6 percentage point in the gross margin to 72.0 percent.