On April 18, Shenzhen Longhao Tiandi Commerce and Trade Development Co., Ltd. (Longhao), a fashion brand chain operation enterprise, signed a strategic cooperation agreement with Hony Capital in Shenzhen. According to the agreement, Hony Capital will initially invest RMB200 million in Longhao. This transaction records Hony Capital the first time to invest in a chain brand clothing enterprise and also the first time to enter a Shenzhen-based enterprise.

John H. Zhao, Vice President of Legend Holdings and Investment President of Hony Capital, said that they will benefit from this investment deal because of the combination effects between industrial capital and financial capital. Besides capital, Hony Capital will also provide development plan, listing schedule and market, means of fundraising, etc for Longhao.

Reportedly, Hony Capital entered Longhao for a minor stake and will not participate in its daily operation. Longhao has mapped a five-year plan in accordance with the agreement. The capital raised will be used mainly for brand promotion, expansion of outlets, and conducting business into inland third- and fourth-tier cities.