Announced signing an approximately RMB 162 million New Order on the first year
HONG KONG — Tianyun International Holdings Limited (the “Company” or “Tianyun International”, together with its subsidiaries, the “Group”) (Stock code: 6836.HK), a leading seller and manufacturer of processed fruits products in China, is pleased to announce that the Company has entered into a strategic cooperation agreement after market close on 30 January 2018 with Tai Wei Beverage Joint Stock Company Limited (“Tai Wei”) which Tianyun International and Tai Wei will jointly produce and sell X-Bear Energy Drinks (“X-Bear”).
Pursuant to the agreement, Tianyun International becomes a 10-year strategic cooperative partner with Tai Wei. On the first year of cooperation, Tai Wei will place orders of no less than approximately RMB 162 million to the Group in terms of X-Bear production and the drinks will be sold through distribution channels of Tai Wei, including retail, hotel and catering channels. At the same time, Tianyun International is being authorized to sell X-Bear Energy Drinks under its traditional distribution channels in over 20 provinces in the PRC plus existing online channels, to establish a comprehensive offline and online sales network. Tai Wei will be responsible for the organization of the brand promotion and formulation of the marketing strategy and will take up the associated expenses.
X-Bear Energy Drink series are functional drinks, currently offer 2 lines of products including energy drinks and energy fruit tea. Among which the energy drink series is highly recognizable among consumers. The Energy Drinks series are bubbly with a slight sweet and sour taste. They contain guaranine, taurine, vitamin B3 and vitamin B6 etc which are the daily required elements for human body, which can immediately quench one’s thirst, replenish energy and boost power and is suitable for pre- and post- sports, working class, people with high activity level and students. X-Bear is currently one of the top 3 best-selling energy drinks in Taiwan, with high market penetration and brand awareness.
The cooperation acts as an important step for Tai Wei to bring X-Bear into China market. It is also a stepping stone for Tianyun International to add functional products to its product line, and enables the Group to distribute its traditional and newly developed processed fruit products in the Taiwan market through Tai Wei in the future. This strategic cooperation is expected to bring positive impact to the Group’s results in 2018 and years after.
Mr. Yang Ziyuan, Chairman and CEO of the Group commented, “The strategic cooperation will integrate the Group and Tai Wei’s respective resources to jointly develop, manufacture and sell high-quality and market-oriented beverage products in the PRC on the basis of mutual benefit and reciprocity in the long run, and we are glad the cooperation could be reached. According to the “7 innovative trends for 2017 Global Soft Drinks market” issued by Global Data, it is expected that the global soft drinks market will continue to grow between 2016 to 2021, among which China will surpass the US and Europe and become the fastest growing soft drinks market with CAGR reaching 5.1% in the coming years. And among all soft drinks, energy drinks have the greatest development potentials with CAGR expected to reach 7.9% in the near future, higher than bottled water and tea. We are confident that, China functional and sport drinks market will continue its rapid growth upon the trend of consumption upgrade and rising health awareness. We believe the cooperation with Tai Wei will allow us to continue our mission of providing healthy, safety and convenient processed food, and through expansion and extension of our product lines for bringing more diversified and safe food products to the consumers, boosting continuous business growth and creating values for our shareholders.”