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Sealand subsidiary enters fish maw ecommerce partnership
20th Jul 2020 10:22
(Sharecast News) - Sealand Capital Galaxy announced on Monday that its subsidiary company, ePurse HK, has signed a 24-month strategic partnership agreement with JM International to help it develop and execute its ecommerce strategy.
The London-listed firm said JM founded the Qiaohuajiao brand in 2016, setting up its own factory and research and development team in Hong Kong, focusing on the production of cod fish maw in the traditional way, without adding preservatives.
It said 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, with Sealand's recently-formed joint venture Hyrax Holdings the sole distributor of fish maw for JM in China, including Hong Kong and Macau.
Sealand said ePurse has successfully helped JM to enter the Tmall International online marketplace, becoming the first and currently only fish maw flagship store there.
It said the Qiaohuajiao Tmall international flagship store was launched on 8 July, with all store page design, promotion planning and daily online store operations being managed by ePurse.
Under the terms of the partnership with JM, ePurse would be responsible for 70% of all operating expenditure, but would also earn 70% of all profits generated.
"Being the first fish maw flagship store on Tmall International gives us great visibility among Chinese consumers and a great competitive advantage," said executive chairman Nelson Law.
"At present, there are only two products in the store for customers to buy, yet despite this we completed more than £12,000 of transactions in four days, with the average transaction price exceeding £57 per transaction.
"We expect total transactions for July to exceed £40,000 and the profit margins are attractive."
Law said the early sales underlined the popularity and potential demand for fish maw products, adding that the company envisaged the range of products would 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 £0.8m in the first year of operations."
At 1005 BST, shares in Sealand Capital Galaxy were down 12.73% at 1.44p.
The London-listed firm said JM founded the Qiaohuajiao brand in 2016, setting up its own factory and research and development team in Hong Kong, focusing on the production of cod fish maw in the traditional way, without adding preservatives.
It said 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, with Sealand's recently-formed joint venture Hyrax Holdings the sole distributor of fish maw for JM in China, including Hong Kong and Macau.
Sealand said ePurse has successfully helped JM to enter the Tmall International online marketplace, becoming the first and currently only fish maw flagship store there.
It said the Qiaohuajiao Tmall international flagship store was launched on 8 July, with all store page design, promotion planning and daily online store operations being managed by ePurse.
Under the terms of the partnership with JM, ePurse would be responsible for 70% of all operating expenditure, but would also earn 70% of all profits generated.
"Being the first fish maw flagship store on Tmall International gives us great visibility among Chinese consumers and a great competitive advantage," said executive chairman Nelson Law.
"At present, there are only two products in the store for customers to buy, yet despite this we completed more than £12,000 of transactions in four days, with the average transaction price exceeding £57 per transaction.
"We expect total transactions for July to exceed £40,000 and the profit margins are attractive."
Law said the early sales underlined the popularity and potential demand for fish maw products, adding that the company envisaged the range of products would 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 £0.8m in the first year of operations."
At 1005 BST, shares in Sealand Capital Galaxy were down 12.73% at 1.44p.