Sealand Capital Galaxy Limited New Contract Win (4114T)
July 20 2020 - 1:00AM
UK Regulatory
TIDMSCGL
RNS Number : 4114T
Sealand Capital Galaxy Limited
20 July 2020
For immediate release: 20 July 2020
Sealand Capital Galaxy Limited (LSE: SCGL)
ePurse wins new contract with JM International
Creates first Fish Maw flagship store on Tmall International
Sealand ("Sealand" or "the Company") is pleased to announce that
subsidiary company ePurse (HK) Limited ("ePurse") has signed a
24-month strategic partnership agreement with JM International
("JM") to help it develop and execute its ecommerce strategy.
JM, founded the Qiaohuajiao brand in 2016, setting up its own
factory and R&D team in Hong Kong, focusing on the production
of cod fish maw, only producing fish maw in the traditional way
using pure natural production without adding preservatives. The
brand has a variety of fish maw products, used in a variety of
industries, such as health, cosmetics and food production. All
products have passed STC and SCS certification ensuring product
safety and quality. Sealand's recently formed JV, Hyrax Holdings
Limited, is the sole distributor of fish maw for JM in China,
including Hong Kong and Macau.
ePurse has successfully helped JM International to enter Tmall
International, becoming the first and currently only Fish Maw
flagship store on Tmall International. Tmall International, is a
B2C platform and part of Alibaba Group. It is a popular online
marketplace in China where many international brands are selling
their products. Tmall International currently hosts more than 400
foreign brands coming from 25 countries and regions.
Tmall International compares favourably with similar stores on
China's local Tmall and Taobao platforms, as it is only open to
overseas merchants and so has higher credibility among Chinese
consumers, who are more inclined to purchase higher value branded
goods from there, as overseas brands are better trusted. For
merchants this means increased sales volumes and better customer
loyalty.
The Qiaohuajiao Tmall International Flagship Store was
officially launched on July 8(th) with all store page design,
promotion planning and daily online store operations being operated
by ePurse. Under the terms of the partnership with JM, ePurse will
be responsible for 70% of all operating expenditure, but will also
earn 70% of all profits that it generates.
Nelson Law, Executive Chairman of Sealand said:
"Being the first Fish Maw flagship store on Tmall International
gives us great visibility among Chinese consumers and a great
competitive advantage. At present, there are only two products in
the store for customers to buy, yet despite this we completed more
than GBP12,000 of transactions in four days, with the average
transaction price exceeding GBP57 per transaction. We expect total
transactions for July to exceed GBP40,000 and the profit margins
are attractive. These early sales underline the popularity and
potential demand for fish maw products and it is envisaged that the
range of products will increase substantially over the coming
months. With the subsequent launch of new products, we expect the
transaction amount will gradually increase, and the total
transaction amount is expected to reach in excess of GBP800,000 in
the first year of operations."
He added :
"This is a great example of our Group companies working together
to deliver ecommerce strategies and we will look to expand this
business model to the UK market through our ePurse (UK) subsidiary.
Our aim is to target different high quality niche British brands
and products and provide services to help them access the huge
Chinese e-commerce market. Our e-commerce solutions can help brands
with shorter time frames to market, lower investment and increased
ROIs."
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse
-Ends-
Enquiries:
Sealand Capital Galaxy Limited
Law Chung Lam Nelson, Executive Chairman + 44 753 795 9788
Notes to Editors:
-- 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/
Disclaimer
This announcement contains certain forward-looking statements.
These statements are made by the Company's directors in good faith
based on the information available to them up to the time of their
approval of this announcement but such statements should be treated
with caution due to inherent uncertainties, including both economic
and business factors, underlying such forward-looking information.
This announcement has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. This announcement
should not be relied on by any other party or for any other purpose
.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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