Market Update

RNS Number : 5275X

Sealand Capital Galaxy Limited

01 September 2020

 

For immediate release: 1 September 2020

Sealand Capital Galaxy Limited (LSE: SCGL)

Market Update

Sealand Capital Galaxy Limited ("Sealand" or "the Company")   is pleased to update the market on its progress.

Before Sealand introduced the Qiaohuajiao brand of fish maw into mainland China earlier this summer, the brand had almost no market recognition in China.  In a few short months, Sealand's operations team have successfully launched sales of fish maw on the popular Tmall International brand flagship store and has also established the brand image through various media channels in China.

The traditional marketing audience for fish maw is women and Sealand identified Xiaohongshu as the most suitable channel for the first stage of brand image promotion.  In July 2020, Sealand shared a total of 250 articles, which reached more than 800,000 members of the target audience.  This approach included the sharing of articles online by celebrity bloggers.  In future, Sealand will continue to conduct brand promotion through various popular channels such as Douyin, Weibo and WeChat.

Since the launch of its trial operation on 8 July 8 2020, the overseas Tmall flagship store of Qiaohuajiao has delivered turnover in excess of HKD 500,000.  The average amount per customer transaction is over HKD 350, and the sales volume has exceeded 1,200 packs.  On 24 August 2020, Qiaohuajiao was sold through live broadcast on the platform for the first time. The entire warehouse stock was sold out within three minutes, with Qiaohuajiao being the number one ranking store in the Chinese fish maw industry on that day.  

Qiaohuajiao is currently actively preparing for the Double Eleven sales and promotion event and continues to cooperate with Tmall International.  Double Eleven originated from a similar promotional day first held on 11 November 2009 by the Chinese e-commerce giant Alibaba. It has since evolved into an annual industry-wide event, similar to Black Friday elsewhere in the world. From September 2020 Qiaohuajiao will upgrade its stores, launch a new import business, and participate in Double Eleven which Sealand expects will bring further impressive sales figures. 

Sealand is also delighted to announce that ePurse, another subsidiary, is currently signing up British merchants to launch and sell their goods in China.  ePurse was formed to provide a 'one-stop' solution for daily e-commerce, online store management,   brand-strategic and brand-development services in China and South East Asia and to assist foreign merchants to sell their products in China .  Sealand's JV partner, Qianfan, is a five-star awarded Tmall Global Partner, which provides management and marketing services to Tmall stores.

Nelson Law, Executive Chairman of the Company, commented:

"We are delighted with the performance of our Qiaohuajiao products, which are sourced from sustainable wild cod fished in Danish waters. The maw is processed by hand in Hong Kong and is of a very high quality, with no added chemicals or preservatives. Qiaohuajiao brand products have also passed stringent international testing standards.  Through Qiaohuajiao, Sealand is now also planning to focus on research into and the production of fish maw products, which we see as another high growth area for Hong Kong and mainland China.

"The Qiaohuajiao Tmall International Flagship Store was officially launched on 8 July 2020, with all store webpage design, promotional planning and daily online store operations handled by our payments subsidiary, ePurse.  ePurse is responsible for 70% of all operating expenditure of the store, and also earns 70% of all profits generated."

-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 may contain 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 .

 

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