The Board of BPH Global Ltd (ASX: BP8) (Company) is pleased to announce that the Company has entered into two (2) new agreements with the China Tobacco group for the sale and distribution of bird’s nest products via China Tobacco’s outlets in the City of Guangzhou in China for calendar year 2024 (2024 Agreements).
Highlights
- Sales and distribution agreements with China Tobacco renewed for 2024.
- Ongoing sales and distribution activities branded with BP8 Group brand names.
- Potential to expand sales and distribution footprint.
The 2024 Agreements are effectively a renewal of the two (2) sales and distribution agreements from 2023 between the Company’s now wholly owned subsidiary Foshan Gedishi Biotechnology Co Ltd (Foshan) and two (2) wholly owned subsidiaries of China Tobacco based in Guangzhou City in the Province of Guangdong (2023 Agreements). The two wholly owned subsidiaries are Guangzhou Gold Leaves Franchise Co Ltd (Golden Leaves) and Guangzhou City Twenty Sticks Commercial Franchise Co Ltd (Twenty Sticks).
The principal terms of the 2024 Agreements include:
- commencement date 1 January 2024;
- term 12 months;
- products to be supplied:
- pure bird’s nest 50g box;
- pure bird’s nest 100g box; and
- bird’s nest drink – each box contains 3 bottles with 1.5g bird nest content; and
- products to be sold in China Tobacco outlets in the Guangzhou Province of China.
Commencement of sales and distribution operations
The Company is also pleased to announce that, in the lead up period prior to Chinese New Year, Foshan has commenced sales and distribution operations in China:
- pursuant to the 2024 Agreements in the Guangzhou Province; and
- directly on Douyin (the mainland Chinese counterpart of TikTok).
Foshan supplies bird’s nest products to both Golden Leaves and Twenty Sticks at agreed wholesale prices. Golden Leaves and Twenty Sticks determine the retail prices of the bird’s nest products supplied by Foshan.
Golden Leaves and Twenty Sticks operate “China Tobacco” branded retail outlets in Guangzhou City including high-end retail outlets. Foshan currently supplies bird’s products to over 100 (in aggregate) Golden Leaves’ and Twenty Sticks’ retail outlets in Guangzhou City including high-end retail outlets. The Company’s bird’s next products are also stored in China Tobacco warehouses in Guangzhou.
Chinese New Year commences on Saturday, 10 February 2024 and continues for two weeks until Saturday 24 February. Raw bird’s nest and bird’s nest infused products are popular gifts in the Chinese New Year period. The Company will inform the market regarding the initial sales achieved in the trading period commencing in January through to the end of the Chinese New Year period (Initial Trading Period) after the conclusion of the Chinese New Year period.
Click here for the full ASX Release
This article includes content from BPH Global Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Read the full article here
