Sealand Capital Galaxy Limited New Contract Win (4114T)

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 London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 20, 2020 02:00 ET (06:00 GMT)