K-bird deregisters sports insurance subsidiary

In April 2016, Chinese sports apparel and footwear company K-bird and Xiamen Rongyi Network Technology Co., Ltd jointly set up Xiang An Insurance with the aim of gaining a foothold in the field of sports insurance. Unfortunately, the operational revenue was zero 5 months after the establishment of Xiang An Insurance. According to the latest announcement from the K-bird, it has decided to deregister its subsidiary, Xiang An Brokers.

With regard to Xiang An Brokers, K-bird invested RMB 65 million into it, accounting for 65% of the registered capital, while Xiamen Rongyi Network Technology Co., Ltd invested RMB 35 billion, accounting for 35% of the registered capital. Up to September 30th, the total assets of Xiang An Insurance had reached RMB 99.3171 million, with no operational revenue and a deficit of RMB 693,100.

According to K-bird, it decided to deregister its subsidiary, Xiang An Insurance, in order to reduce company operating costs and the risks of outbound investment as well as to optimize the overall running structure of the company.

As early as 2014, K-bird had put forward its development strategy for sports industrialization and has been very active in the sports industry. For instance, it purchased S.CN and JZX-sport, gaining brand licensing from an American company called AND 1. In addition, it has recently purchased Will’s, a noted fitness club .

Source：Beijing Business Today

Proofread by Sean O Diobhilin