Restructuring of ePurse and formation of new JVs

For immediate release: 6^th July 2020

Sealand Capital Galaxy Limited (LSE: SCGL)

Restructuring of ePurse and formation of new Joint Venture Companies

Sealand ("Sealand" or "the Company") is pleased to announce that it has restructured its ePurse business, which has now become a wholly owned subsidiary of Tengwuyang Holdings Limited ("Tengwuyang"), a newly formed joint venture company with Tenet.  Tenet is a subsidiary of Tencent - Dayuewang, a certified MCN (Multi Channel Network) institution.  Dayuewang is a website with a Chinese userbase and is ultimately owned by Shenzhen Tencent Computer Co. Ltd and the Nanfang Media Group. Tengwuyang has entered into a partnership with Qfang International Co. Limited ("Qfang"), with Ofang having a 42% stake in this partnership.

Qfang provides a range of marketing, advertising and e-commerce services on a variety of digital platforms including: Tmall International, Alimama AMP and Lazada.  Alimama is a leading big data marketing platform based in China and Lazada is the largest e-commerce operator in Southeast Asia, with more than 50 million active buyers annually.  Both are owned by the Alibaba Group.

Qfang's team has over ten years' of global online marketing, promotion and e-commerce experience.  The team have successfully executed multiple strategies for a variety of clients including: Graco and Britax, the child car safety seat manufacturer; German water and purifier brands VENTA and Brita; as well as Babo Botanicals, an organic maternal and infant bath care brand based in the US.

The new JV will enable ePurse to offer a holistic e-commerce solution, providing merchants with a complete, turnkey solution ranging from market research to preparation, planning, promotion, operations and sales. 

Hyrax Holdings Limited

Separately, Sealand also today announces the formation of a second joint venture company, Hyrax, together with Famous Biotech Co. Limited.  Sealand holds 40% of the issued share capital in Hyrax, which is registered in Hong Kong, and is the sole distributor of cod fish maw products in China, Hong Kong and Macau.  These products are distributed into the food and cosmetic industries.

Cod fish maw is a source of collagen, proteins, and nutrients.  The collagen in the maw provides a wide variety of skin benefits, such as helping to improve tone and tissue health.  Furthermore, in China, fish maw is considered a traditional delicacy representing fortune and health.  The cod fish maw is imported by Hyrax from Denmark and undergoes processing in Hong Kong. 

Instant fish maw is a growing emerging market in China and Hong Kong, starting from late 2018, and further sales growth in the market are expected in 2020 to 2021.

The imported cod fish maw is internationally certified.  Global certifications of the maw include sustainable fish licenses from the Marine Stewardship Council, the maw is STC tested and is provided with certificate of origin and export licenses from Denmark.  The product also complies with the relevant SGS Global Food Inspection Standards. 

Nelson Law, Executive Chairman of the Company, commented:

"We are pleased with the progress our Company is now making, having faced many macroeconomic and geopolitical headwinds in the last 12 months.  We are now winning contracts and expanding our business offering. The restructuring of ePurse and its partnership with Qfang, through Tengwuyang and Tenet, will open up new online trading channels into China for our clients.  We envisage helping foreign merchants to find an easy way to sell their products and goods in the Chinese market; as well as now also providing logistics and related services."

"Equally, we are very excited about our first direct foray into the food and cosmetic markets.  Maw is a crucial component of these industries in the East.  Our new JV with Famous Biotech Co Limited, Hyrax Holdings, imports natural fish maw from Denmark, free of additives, chemicals and artificial colouring.  Our processed food products include dried, soft and frozen fish maw, all attractively packaged.  Another exciting new product launched by Hyrax is instant fish maw which is available in four popular flavours; abalone sauce, shredded chicken, bisque and ginger & sweetened seaweed.  The other target market is cosmetics, as cod fish maw extract replenishes collagen in the skin, removes radicals and is also used as an anti-aging product.  These cosmetic fish maw products are also enormously popular in China, Hong Kong and Macau."

"We will continue to develop all our businesses utilizing a wide range of channels into China to provide the most cost effective services to overseas merchants wishing to promote, market, advertise, sell and deliver their goods to the large Chinese consumer market."

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse  

-Ends-

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.