For release: 07.00 a.m., 14 October 2019
Sealand Capital Galaxy Limited
("Sealand", or the "Company")
FORMATION OF NEW JOINT VENTURE AND UPDATE ON SUNCITY CONTRACT
Sealand Capital Galaxy Limited (LSE: SCGL) is pleased to give the following operational update and announce its next development in the cross-border advertising and marketing industries.
New Joint Venture Company ("JV")
Sealand has agreed with the "Walk You Through The UK" WeChat official account owner to form a new JV company (subject to approval from the Chinese government) which will provide advertising and marketing services with the owner of that account, Jiangmen Xiaoming Internet Technology Limited (company name translated from Mandarin Chinese). Sealand will hold the majority of the shares in the JV. The JV will use a variety of marketing schemes available on social media in China to provide competitive advertising, customer targeting and marketing solutions to a wide variety of merchants.
The "Walk You Through The UK" WeChat account has around 700,000 Chinese and British followers and is used by merchants to disseminate news of new products, promotions and 'hot topics' to the account's followers. The account provides effective and low-cost exposure for Chinese and British merchants to Chinese travelers and tourists.
Through the JV, Sealand will also launch the official account of "Walk You Through The UK" on two of the most popular short video social media applications in China; Douyin (also known as TikTok in other countries), a leading global short video platform with 500 million active users and Kuaishou, a platform with over 340 million active users. Sealand will create original short videos, aimed at providing interesting information to Chinese travelers on the UK and exposure to unique brand products, which can be offered by merchants to followers of the account. Adverts will be embedded in the short videos, as well as product introductions, promotions and links to make purchases.
New Sky Global: Contract Update
In May 2019, New Sky Global ("NSG"), a Hong Kong-incorporated digital marketing and advertising firm, 55% owned by Sealand, signed a new contract (the "contract") with Tenet, a Multi-Channel Network (MCN) provider, and Suncity Group Leisure Services Limited ("Suncity"). Under the terms of the contract, NSG manages Suncity's Douyin account. NSG has very successfully handled setup, video content planning, management, filming, production and other value-added services for Suncity and in the first three months of the contract, 16 Douyin videos were filmed and published, generating in total in excess of 872,000 likes for and adding over 170,000 new followers to Suncity's Douyin profile. In total, over 38 million video views were recorded by high potential consumers. These numbers exceeded all expectations. Since Suncity has a wide range of properties and projects which all require marketing, New Sky Global is confident that it can sell even more services to Suncity in order to market its further offerings on online platforms such as Douyin off the back of the considerable success and progress already achieved.
Discussions between New Sky Global and the Hoiana Resort, De Nang Catheral, Vietnam have progressed well and have entered the final contract negotiating phase. The Company expects to update the market on this contract to provide advertising and marketing services in due course.
Nelson Law, Executive Chairman of the Company, commented:
"The aim of all our products is to help increase the effectiveness of advertising campaigns and drive sales for merchants wishing to take advantage of the huge potential of the Chinese market and of Chinese travelers overseas. Due to the high follower numbers of the official "Walk You Through The UK" WeChat account, the JV will be ideally positioned to create a number of marketing and advertising initiatives allowing British brands and merchants to enter the profitable and growing Chinese cross-border e-commerce market. This will help these merchants to sell their goods to consumers in Mainland China and we believe will eventually lead to the creation of a new eCommerce platform and travel programme, which will introduce products and promote them on Tencent platforms.
"New Sky Global has proven itself to be a highly effective brand-builder, and the results it has achieved for its biggest client, the Suncity Group, have exceeded targets. Not only has this earnt the Company healthy revenues, but the successful case study will help NSG win other opportunities within the Suncity Group; as well as with other multinational corporations."
-Ends-
Enquiries
Sealand Capital Galaxy Limited |
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Law Chung Lam Nelson, Executive Chairman |
+ 44 7537959788 |
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Belvedere Communications |
+44 20336872756 |
Notes to Editors:
· Sealand Capital Galaxy Limited (LSE: SCGL) is engaged in the investment and acquisition of IT and social media businesses in the APAC region with high growth potential.
· 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.
