In 200 1 year, due to different opinions, Chen Yihong once resigned from Li Ning Company, but was recalled by Li Ning Company one year later and asked to set up a subsidiary of Li Ning Company in Beijing-Beijing Trend.
In 2005, Beijing Chaoliu was established, and its main business was to represent the Italian sportswear brand Kappa, and obtained the exclusive franchise rights of Kappa in Chinese mainland and Macau. At this time, Chen Yihong holds 20% of the shares of Beijing Trend, and Li Ning holds 80% of the shares of Beijing Trend. Due to being squeezed by well-known brands such as Adidas, Puma and Nike in the international market, and competing by local brands such as Anta in the domestic market, the sales of Kappa have been unsatisfactory. For the sake of risk prevention and strategic adjustment, Li Ning Company finally decided to abandon the trend of Beijing and sell its 80% equity to Chen Yihong. Since then, Beijing Trend has changed its name to China Trend, and Chen Yihong has completely ended its five-year cooperation with Li Ning Company/KLOC-0.
In 2006, China Mobile introduced Morgan Stanley as a strategic investor, and then spent 300 million yuan to buy out Kappa's brand ownership and permanent management rights in Chinese mainland and Macau.
In 2007, China Trend went public in Hong Kong, with a total market value of HK$ 29.87 billion that day, far exceeding that of Li Ning. Chen Yihong is called "the godfather of fashion sports brands" because he saw the blank spot of sports brand market lacking fashion elements, and implanted fashion trends in Kappa clothing.
At the end of April, 2008, Chen Yihong acquired Feniks Company, which has the right to operate Japanese Kappa. Therefore, it also acquired the Feniks brand of Feniks Company and the sportswear design team of Feniks Company, and the share of skiing and sportswear of Feniks brand ranked first in the corresponding market in Japan.