SINOMAX GROUP (01418) spent 4.6 million US dollars to acquire the intellectual property rights of the American brand "VIBE."

SINOMAX GROUP (01418) announced that on July 7, 2025 (after trading hours), its wholly-owned subsidiary Sinomax USA has entered into an IP acquisition agreement with Kimberly. According to the agreement, Sinomax USA agrees to purchase the acquisition IP for a buying price of 4.6 million US dollars (equivalent to approximately 35.88 million Hong Kong dollars). The acquisition IP includes the following items collectively: (a) trademarks related to the "VIBE" brand; (b) copyrights; (c) and all other intellectual property rights related to or used by Kimberly, including any inventions, expertise, trade secrets, designs, and plans, along with brand goodwill associated with the use or ownership of the aforementioned items. The announcement mentioned that the brand is a well-known American brand with approximately eight years of history and enjoys high brand recognition in its market segments. The acquisition allows the group to leverage the existing reputation of the brand to enhance its product range and market share. In addition, since November 2022, Sinomax USA has been using the acquisition IP as a licensee under a licensing agreement. Considering that (i) the purchase price for the acquisition is 4.6 million US dollars, and (ii) the minimum quarterly royalties payable by the group under the licensing agreement are 200,000 US dollars, the directors believe that the acquisition provides a cost-effective and low-risk opportunity for the group to transition from being a brand licensee to a brand owner. Owning the brand outright will provide the group with greater flexibility in brand positioning, marketing, and expansion strategies. The acquisition provides strategic flexibility for the group and the potential for further realization of the brand's value, particularly in markets outside the regions covered by the licensing agreement granted to Sinomax USA.