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The Board of Directors of Bonia Corporation Berhad ("Company" or "Bonia") wishes to announce that the Company’s wholly-owned subsidiary company, Guangzhou Jia Li Bao Leather Fashion Co Ltd ("GJLB") has on 25 June 2010 entered into a Joint Venture Agreement with Mr Zheng Yuan Qiang, a citizen of The People's Republic of China to market, sell, distribute, import and export of fashionable ladies' leatherwear and accessories under the brandname of "BONIA" in the territory of The People’s Republic of China which shall exclude Hong Kong, Macau and Taiwan, for a tenure of five (5) years with an option to renew for another five (5) years ("JV"). The JV shall be carried out through a formation of a joint venture company in The People’s Republic of China namely Guangzhou Yong Yi Leather Fashions Co Ltd ("GYY").
GYY has been granted a business licence on 19 May 2010 which is valid for a duration of ten (10) years. The registered capital of GYY is RMB3,000,000 on an equity basis of 40:60 between GJLB and Mr Zheng Yuan Qiang respectively.
The JV has no material effect on the earnings per share, net tangible assets per share, share capital and the substantial shareholdings of the Company for the financial year ending 30 June 2010.
None of the Directors and major shareholders or persons connected to the Directors or major shareholders of Bonia and its subsidiaries have any interest, direct or indirect, in the JV.
This announcement is dated 25 June 2010. |
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