BNN Technology PLC New Tmall Partnership with Arsenal (0785M)

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RNS Number : 0785M

BNN Technology PLC

26 July 2017

26 July 2017

BNN Technology becomes Arsenal's Official Tmall Retail Partner

Group extends and expands partnership with leading European football club to create and operate online store with Chinese B2C giant

BNN Technology (AIM: BNN), a London-listed Chinese technology, content and services company, today announces a significant further expansion of its commercial relationship with Arsenal Football Club, signing a contract to create and operate an online store in China through Tmall, the business-to-consumer (B2C) marketplace owned by the country's leading e-commerce group, Alibaba.

The Group will be licensed by Arsenal as its Official Tmall Retail Partner. The Arsenal Tmall store, developed and operated by BNN's Chinese technology partner Harbin Tengcai Science & Technology Co. Limited ("Tengcai"), will sell a wide range of official Arsenal branded merchandise, including the 2017/18 replica kit and training wear by PUMA. BNN will have an 80% share of all revenues and earnings from the store, with the remainder distributed to our Chinese partner.

Tmall represented 56.6% of Chinese retail e-commerce sales in 2016, more than twice those of the second largest platform (Source: iResearch Consulting). In China's famous 11/11 Singles Day retail event in November 2016, Alibaba's online marketplaces generated Gross Merchandise Value of RMB 120.7bn (GBP13.7bn) in 24 hours, a 27% increase on the 2015 event. BNN's technology platform has supported Alibaba on a number of e-commerce initiatives in recent years involving high volumes of transactions.

BNN announced on 24 March 2017 that its multifaceted partnership with Arsenal would be expanded to encompass delivering unique content, developing coaching programmes, providing 'money can't buy' VIP experiences for Chinese football fans and offering competitions through a number of online channels including the Xinhua News Mobile App.

In recent months, football fans have driven significant customer acquisition for BNN to utilise across all of its sales platforms, including B2C channels for student services, mobile top-ups, and higher margin mobile bandwidth. BNN will continue to develop football-based data initiatives as part of its wider strategy, using content and services to attract users to register with its sites and apps to create a broad marketing platform based on high-quality user data.

The Group will make a further announcement in due course when it launches the Arsenal store on Tmall.

Darren Mercer, Chief Executive of BNN Technology, said:

"We are very excited to be expanding and extending our commercial relationship with Arsenal, developing a three-way e-commerce initiative which we believe presents a longer term opportunity to market directly to Alibaba's 454 million users. Our ability to combine Arsenal's strong brand and fan base with Tmall's huge B2C reach and BNN's robust technology platform clearly demonstrates the strength of the Group's strategy in football. Our partnerships with some of the world's largest clubs continue to generate high quality consumer data as we collaborate with major online partners to accelerate the Group's B2C drive across its various platforms in the second half of 2017 and beyond."

Vinai Venkatesham, Chief Commercial Officer of Arsenal FC, said:

"Through our relationship with BNN Technology, we are delighted to offer supporters in China the opportunity to buy official club merchandise and replica kits via Tmall, the most important marketplace platform in China. This new retail offering continues to show our commitment to China as part of the broader expanded partnership with BNN Technology, and will be of significant benefit to our millions of supporters locally."

For further information, please contact:

 
 BNN Technology plc                     [phone] 
   Darren Mercer, Chief Executive 
    Scott Kennedy, Chief Financial 
    Officer 
    Stephen Benzikie, Communications 
 
 Strand Hanson Limited (Nominated           [phone] 
  & Financial Adviser)                                 3494 
   Andrew Emmott / Ritchie Balmer 
 
    Mirabaud Securities LLP (Broker)        [phone] 
    Peter Krens                                        3362 
 

About the Group

BNN Technology plc is a Chinese technology, content and services company that builds long-term partnerships to deliver China's citizens with value-added services, content and evolving opportunities.

Listed on AIM since 2014 the Group principally engages in providing technology to partners to facilitate fulfilment of payments online and on mobile apps through partnerships or affiliate agreements with corporate and key government partners, and, developing digital content, both online and mobile. Through its partnership with Xinhuatong and NewNet, BNN facilitates mobile payments, through its technology platform, on the Xinhua News mobile app in 12 provinces in China. The Chinese consumer shift to 'life on mobile' is only just beginning and BNN's platform technology enables urban and rural communities across China to access exclusive content and pay for more services online.

The Group employs nearly 300 professionals throughout China.

About Arsenal FC

Arsenal is one of the leading clubs in world football with a strong heritage of success, progressive thinking and financial stability.

Arsenal Football Club was founded in 1886 in Woolwich, south London, before moving to Highbury in north London in 1913.

Arsenal has an impressive roll of honour: English League Champions 13 times, FA Cup winners a joint-record 12 times, League Cup winners twice and European Cup Winners' Cup (1994) and European Fairs Cup (1970) winners once.

In addition, Arsenal Ladies are the most successful English club in women's football.

Arsenal's Manager since 1996 has been Frenchman Arsène Wenger. Wenger is Arsenal Football Club's most successful manager. His honours include three League titles, six FA Cups and six Charity/Community Shields, including two League and Cup 'doubles' in 1998 and 2002.

For further information please visit: www.Arsenal.com

This information is provided by RNS

The company news service from the London Stock Exchange

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July 26, 2017 02:00 ET (06:00 GMT)