China Xiniya Fashion Limited ("Xiniya" or the "Company") (NYSE: XNY), a leading provider of men's business casual apparel in China, announced today that it has renewed and expanded its brand spokesperson contract with Jacky Cheung, one of the most well-known pop singers in China, for an additional two year period commencing on March 1, 2011 through February 28, 2013. Mr. Cheung has represented the Xiniya brand since October 2007 and his current engagement is set to expire in February 2011.
Mr. Cheung is a popular icon in China in the music, film and television industries, where he is also regarded as one of the “Four Heavenly Kings of Chinese Pop Music.” Peak record sales of more than 50 million albums in China, were second only to the late Michael Jackson, according to IFPI statistics. In 2007-2008, Mr. Cheung was recognized by the Guinness Book of World Records for organizing the most series of concerts and has been considered “One of the Top 25 Most Influential People in Hong Kong” by Time Magazine. In television, Mr. Cheung has received awards for Best Supporting Actor by the Hong Kong Film Awards and the Taiwan Golden Horse. He was also awarded Best Actor by The New Delhi Film Festival.
Under the terms of the contract, Mr. Cheung will appear in television and print advertisements and participate in press conferences in certain mainland cities in China. Xiniya is permitted to use these advertisements at its stores and other outlets that are mutually agreed upon by both parties. Xiniya will also sponsor Mr. Cheung’s current 50 city concert tour, “One Half Century,” in select cities, and the Xiniya brand will be featured on all concert advertising and press campaigns. As this will be Mr. Cheung’s first concert tour in over three years, there has been significant media and fan attention placed on the tour. Financial terms of the contract renewal are consistent with the terms of the initial contract. However, Mr. Cheung will be paid in HKD which has depreciated relative to the RMB. Thus, Xiniya will realize more favorable payments due to currency fluctuations.