Sealand Capital Galaxy Limited Memorandum of Understanding signed to create JV (0029B)
June 04 2019 - 1:00AM
UK Regulatory
TIDMSCGL
RNS Number : 0029B
Sealand Capital Galaxy Limited
04 June 2019
For release: 07.00, 4 June 2019
Sealand Capital Galaxy Limited
("Sealand", or the "Company")
Memorandum of Understanding signed with Guangdong HuaCheng to
create Joint Venture company
Sealand Capital Galaxy Limited (LSE: SCGL) is pleased to
announce that it has signed a Memorandum of Understanding ("MoU")
with Guangdong HuaCheng Technology Limited, the national agent of
Tencent Regional Marketing Pioneer ("Tencent RMP Car"), to form a
new equity Joint Venture company ("JV") that will obtain and own a
license to operate Tencent RMP Car's activities across China.
Sealand will own 55% of the JV, which is currently undergoing the
necessary regulatory approval process to become a Variable Interest
Entity ("VIE").
Tencent RMP Car is one of the brand names under Tencent RMP,
which is a leading Chinese online portal developed by Tencent. It
provides car related information, news, professional reviews and
sales enquiry services. Chinese consumers typically use Tencent RMP
Car when considering the purchase of a vehicle and the promotional
activities hosted by the platform have a high consumer uptake.
Merchants choose to advertise on Tencent RMP Car because its
consumer targeting is precise and makes marketing campaigns more
effective. Consumers tend to be brand loyal to the platform and
users are mostly high-income earners with considerable purchasing
power, who typically rely solely on Tencent RMP Car for their
information. The platform divides registered users into different
groups according to the information that they willingly provide
during Tencent RMP Car's promotions. This helps merchants to
advertise based on specific characteristics of users.
The JV proposes to obtain the right and license to be the
platform implementer and to develop mini programmes, plan
influencer activities and carry out advertising campaigns. It will
also provide bespoke marketing advice to merchants, allowing them
to create self-driving car demonstrations and to interview
professional reviewers. Merchants will also be empowered to
distribute creative output on other platforms, such as WeChat
Moment.
Two other platforms will also be set up. Firstly, The Digital
Call Centre is a CRM tool that will allow a salesperson to contact
a user directly, to understand their exact needs and to maximize
the chances of completing a sale. Secondly, the Wecar system will
analyse data, with the help of Tencent Cloud and its AI systems, to
provide more accurate and precise targeting for marketing
campaigns.
Nelson Law, Executive Chairman of Sealand, commented:
"This is an exciting venture for Sealand as it gives us access
to the Chinese automotive market. We will seek to bring
international car manufacturers into the considerable opportunity
afforded by the market in mainland China. Additionally, there is a
further opportunity with external funding to create a business to
businesses car financing scheme within the JV company. Such a
scheme would lower car dealers' risk, whilst benefitting from
revenues such as interest and garage and management fees. I look
forward to updating the market further on these initiatives in due
course."
-ends-
Enquiries:
Sealand Capital Galaxy Limited
Law Chung Lam Nelson, Executive Chairman
+44 (0) 7537 959788
Barney Battles, Non-Executive Director
+44 (0) 778 976 6242
Belvedere Communications
John West
+44 (0) 2036 872756
Llew Angus
+44 (0) 2036 872757
Notes to Editors:
-- Sealand Capital Galaxy Limited (LSE: SCGL) is engaged in the
investment and acquisition of IT and social media businesses in the
APAC region with high growth potential.
-- The Company's Shares are traded on the Official List of the
London Stock Exchange's main market for listed securities under the
ticker SCGL.
-- Further information on Sealand is available on its website http://www.scg-ltd.com/
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END
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