Under the background of the 2008 Beijing Olympic Games, the acquisition of Li Ning Co is considered to be a struggle for the domestic sports brand.

Also smiling, Huang Yongwu, chairman of Shanghai red double happiness, and his assistant Lou Shihe.

Last Thursday, when it came to the acquisition of 57.5% of the shares, Huang Yongwu said with a loud voice: "because both red double happiness and Lining want to build a world brand!"

The Olympic Games of China's sports brands have opened up a lot of scenes.

When Adidas fully took over the Beijing Olympics, Li Ning Co was a bit embarrassed.

In the industry, competitors have been watching to see what actions Li Ning Co has.

The news of the acquisition of Shanghai's red double happiness immediately shook the Quartet.

Merrill Lynch, Morgan Stanley and other international investment banks have been optimistic about this paction, think it will stimulate Lining stock rise.

In 2006, the sales volume of red double happiness was 269 million yuan, and the net assets yield was 16%. The acquisition helped expand its product mix and brought cross selling opportunities to ping pong equipment and footwear products. It was expected that the red double happiness would benefit Lining's strong market network and platform.

Merrill Lynch believes that the acquisition of red double happiness although the profit only contributed 5%, but the introduction of well-known brands in the mainland, will be conducive to Lining's strategic development.

As Lining still has up to 500 million yuan in cash on hand, it is expected that similar acquisitions will take place in the company.

In this regard, Zhang Zhiyong believes that Li Ning Co shares belong to "risk aversion" stocks.

"When we have good news, we will not go up, step by step..."

"The key is complementary resources.

Li Ning Co produces sportswear, and red double happiness is the leading table tennis equipment manufacturer in China.

In Chinese sports consumption, table tennis is ranked fourth.

If Lining does not cooperate with red double happiness, it will be more difficult to restart in the field of table tennis.

Zhang Zhiyong said that when he became a Li Ning Co CEO 5 years ago, he wanted to understand this problem. In such a big place in China, there must be a local sports brand.

"We must promote the local brand culture with the vision of the world.

Nike and Adidas can take the first tier cities, but they may not be able to reach the prefecture level and county-level cities, which will give Lining brand a firm foothold.

In this regard, Zhang Zhiyong agreed.

In the context of the Beijing Olympic Games, Li Ning Co and the opening ceremony director Zhang Yimou are facing the same problem: how to use the Chinese "food" to make world class "taste".

Since 1961, red double happiness has been approved by the International Table Tennis Federation as an international competition ball.

In 2000, the International Table Tennis Federation declared that the standard of red double happiness should be adopted as the international standard through the reform of the table tennis ball, and the red double happiness 40 millimeter table tennis ball was used for the first time in the October World Cup.

As a result, red double happiness has established a leading position in the world table tennis industry.

"In China, table tennis is a national sport, the most favorite sport for Chinese people, and the best place for local culture."

During the Olympic Games, Lining will sell the products of red double happiness in the flagship stores of 6 Olympic cities.

In some cities, there will be a caravan tour between Lining and the red double happiness brand.

In addition, Wang Liqin, Wang Hao, Ma Lin, Wang Nan, Xia Xuanze, Gong Ruina and other star resources under the red double happiness will contribute to Lining brand.

After the Beijing Olympic Games, the two sides will have a strategic plan for 5 years.

Why is red double happiness willing to become Li Ning Co's "indirect non wholly owned Affiliated Companies"?