SILVER BASE GROUP HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands with limited liability)
(stock code: 886) VOLUNTARY ANNOUNCEMENT ENTERING INTO NEW PRODUCT DISTRIBUTION AGREEMENTS AND RENEWAL OF SEVERAL PRODUCT DISTRIBUTION AGREEMENTSThis is a voluntary announcement made by Silver Base Group Holdings Limited (the "Company", together with its subsidiaries, the "Group") to enhance the transparency of the Company.
The board ("Board") of directors ("Directors") of the Company is pleased to announce that 銀基貿易發展（深圳）有限公司 (Silver Base Trading and Development (Shenzhen)
Co. Limited*) ("Shenzhen Silver Base Trading"), a wholly-owned subsidiary of the Company, has entered into a new authorised distribution agreement with 國酒茅台（貴 州仁 懷）營銷有 限公司 (Guojiu Moutai (Guizhou Renhua) Marketing Co., Ltd.*) ("Guojiu Moutai"), a new exclusive distribution agreement with 宜賓五糧液酒類銷售 有限責任公司 (Yibin Wuliangye Liquor Sales Co., Ltd.*) ("Yibin Wuliangye") and
renewed several exclusive distribution agreements with Yibin Wuliangye. Both Guojiu Moutai and Yibin Wuliangye are major suppliers of the Group.
Further information on the entering into a new product distribution agreement with Guojiu Moutai is set out below:
Product for authorised distribution:
53度飛天茅台500毫升裝
(Feitian Moutai baijiu with 53% alcohol content in 500 milliliter bottles) ("Product I")
Product type for distribution: Soy flavor
Date of the agreement: 17 May 2017
Term of the agreement: To be renewed annually
Reasons for entering into the agreement:
On the one hand, with new member being added to the existing Moutai liquor series distributed by the Group, more offerings could be provided and the product line is enriched; on the other hand, Product I is one of the best-selling products of Guojiu Moutai and the entering into the agreement allows the Group to expand into the market of this best-selling product and has strategic significance.
Further information on the entering into a new product exclusive distribution agreement with Yibin Wuliangye is set out below:
Product for exclusive distribution:
五糧液 • 流金歲月
(Wuliangye • Golden Years) ("Product II")
Product type for distribution:
Strong flavor
Area authorised
for distribution:
China (People's Republic of China, but excluding Hong Kong and
the Macau Special Administrative Region)
Date of the agreement: 11 May 2017
Term of the agreement: Commenced from 11 May 2017 and ending
on 12 May 2022
Reasons for entering into the agreement:
Product II is a product of Yibin Wuliangye to be exclusively distributed by the Group for the first time. It comes in a drum-shaped bottle packaging and is available in alcohol content of 52%, 45% (if available) and 39% (if available). This product is expected to attract new customers for the Group and has profound s ignificance for market development.
Further information on the renewal of several exclusive distribution agreements with Yibin Wuliangye are set out below:
Product for exclusive distribution:
45度五糧液
(Wuliangye with 45% alcohol content) ("Product III")
Product type for distribution:
Strong flavor
Area authorised
for distribution:
China (People's Republic of China, but excluding Hong Kong and
the Macau Special Administrative Region)
Date of the agreement: 22 March 2017
Term of the agreement: Commenced from 22 March 2017 and ending
on 21 March 2022
Reasons for entering into the agreement:
To ensure that the Group would continue to enjoy a reliable supply of best-selling products.
Product for exclusive distribution:
68度五糧液
(Wuliangye with 68% alcohol content) ("Product IV")
Product type for distribution:
Strong flavor
Area authorised
for distribution:
China (People's Republic of China, but excluding Hong Kong and
the Macau Special Administrative Region)
Date of the agreement: 22 March 2017
Term of the agreement: Commenced from 22 March 2017 and ending
on 21 March 2022
Reasons for entering into the agreement:
To ensure that the Group would continue to enjoy a reliable supply of best-selling products.
Product for exclusive distribution:
「永福醬酒」系列酒
(Yongfu Jiangjiu liquor series) ("Product V")
Product type for distribution:
Soy flavor
Area authorised
for distribution:
China (People's Republic of China, but excluding Hong Kong and
the Macau Special Administrative Region)
Date of the agreement: 16 May 2017
Term of the agreement: Commenced from 2 March 2017 and ending
on 25 December 2025
Reasons for entering into the agreement:
As liquor with soy flavor becoming more popular among China's baijiu consumers, the renewal of the long-term exclusive distribution agreement of Product V allows the Group to formulate more sophisticated and long-term promotion and marketing strategies targeted for liquor with soy flavor so as to further enhance its contribution to the Group's sales.
EMBLEM FOR ENTERING INTO NEW PRODUCT DISTRIBUTION AGREEMENTS AND RENEWAL OF SEVERAL PRODUCT DISTRIBUTION AGREEMENTSThe Group has well established distribution channels and networks in the PRC. The Board believes that, being appointed as one of the authorised distributors for its best-selling product by Guizhou Moutai after several years' cooperation signifies Guizhou Moutai's recognition of the Group's ability of, and resources devoted to, the distribution of its products, such as the successful launch of "Wine Kingdom • Cloud Partnership" platform (品匯壹號 • 雲合夥) targeting B2B market in last year.
The Board believes that the renewal of exclusive distribution agreements relating to Product III, Product IV and Product V with Yibin Wuliangye signifies that, after close cooperation between Yibin Wuliangye and the Group over almost two decades, Yibin Wuliangye is satisfied with the Group's past performance in distributing its products and the continual support offered by the Group. The entering into an exclusive distribution agreement relating to Product II represents that, in addition to the existing products under distribution agreements, for the first time Yibin Wuliangye grants the exclusive rights to distribute its liquor products with 52% and 39% alcohol content to the Group, so that the Group could distribute all its major alcoholic products and this may bring new impetus to the sales growth of the Group in the future.
The Group capitalizes on the pick up in sales momentum in China's baijiu market since last year and proactively enriches the product lines distributed by the Group. The Group believes that the entering into the above agreements by Shenzhen Silver Base Trading will create favorable conditions for the future sales of the Group and could enhance the Group's value for the interests of the Shareholders.
By Order of the Board
Silver Base Group Holdings Limited Liang GuoxingChairman
Hong Kong, 22 May 2017
As at the date of this announcement, the Board comprises Mr. Liang Guoxing (Chairman), Mr. Wang Jindong and Ms. Cheung Mei Sze as executive Directors; Mr. Wu Jie Si and Mr. Chen Sing Hung Johnny as non-executive Directors; and Mr. Hung Sui Kwan, Mr. Ma Lishan and Mr. Lee Kwok Keung Edward as independent non-executive Directors.
* for identification purpose only
Silver Base Group Holdings Ltd. published this content on 22 May 2017 and is solely responsible for the information contained herein.
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