| N.I. Teijin Shoji Co., Ltd. ("NITS"; Location: Chuo-ku, Osaka; President: Hiroshi Kitano) will invest in Asia Network Ventures Limited ("ANV"; business office: Shanghai), a major TV shopping business in China, and is pleased to report a general outline of the initiative. |
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| Details |
| 1. Background |
In the growing Chinese retail market, the composition ratio of TV shopping is projected to grow from the current 0.2% or less to at least 1%, and the scale of the TV shopping market is also gathering momentum to bloom from the current ¥250 billion to ¥2 trillion in the near future.
ANV has established TV shopping businesses in approximately 60 urban TV stations and covers 16 million viewing households in the coastal area, achieving the fourth largest sales volume in the current Chinese TV shopping market. It intends to expand the number of broadcasting areas as well as viewing households and broaden the product lineups in order to grow to be one of the three biggest Chinese TV shopping companies.
The NITS group, whose mid-term management strategy is "to expand distribution channels globally and in growth fields," is eager to seize this opportunity for investment to handle sales of jointly developed products to ANV and push ahead with business expansion in the Chinese market, capitalizing on its product planning and production functions ranging from apparel products to livingware fields. |
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| 2. Implementation |
| NITS closed a contract regarding acceptance of common stocks equivalent to US$2 million newly issued by ANV and made payment on July 21. As a result of this capital injection, NITS will become a shareholder owning 5.9% of ANV's stocks. |
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| 3. Business Scheme and Future Development |
NITS will roll out TV shopping businesses involved in both (a) sales of jointly developed products and (b) platform business for ANV.
NITS will start sales of provided products from the latter half of 2009 and plans sales of ¥1.5 billion three years from now and ¥3 billion five years in the future. |
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| (a) Sales of jointly developed products |
| ANV will establish a joint product development team with NITS, providing primarily clothing articles, bed clothing and other interior goods to ANV. |
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| (b) Platform business |
| NITS will provide its client partners (Japanese and Chinese companies) hoping to roll out TV shopping business in China with ANV’s sales channels, acting as an intermediary to supply their products to ANV. |
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| 4. Brief Overview of Asia Network Ventures Limited |
| Foundation |
July 2006 |
| Headquarters |
British Cayman Islands |
| Business office |
Shanghai, China |
| Representatives |
Kim Youngsoo, CEO; Mingliang Jiang, COO; Hiroshi Nakanishi, CFO |
| Description of business |
Advertising, mail-order business |
| Number of employees |
350 |
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