JiaMiFang Group (08300) announced today that on June 18, 2024, it had signed a strategic cooperation agreement with a supplier for the sales and distribution of food products such as chicken and beef.

Under the strategic cooperation agreement, the contracting party agrees (including) (i) the company must provide sales channels to the supplier for the sale and distribution of its products in China; (ii) the supplier shall provide high-quality products and services to the company at competitive prices; and (iii) the contracting party shall establish a team to actively promote the cooperation and jointly responsible for the consultation and coordination of cooperative projects under the strategic cooperation agreement. The term of the strategic cooperation agreement is two years.

In addition to its baijiu supply business, the company has been actively exploring new business opportunities to bring higher returns to its shareholders. The signing of the strategic cooperation agreement provides an invaluable opportunity for the Group to diversify its business and sources of revenue, by collaborating with the supplier (as an important and reliable market participant) to develop its food sales and distribution business.

According to the information obtained by the company, the supplier is mainly engaged in the distribution and sale of various fresh foods, including organic vegetables, seasonal fruits, fresh meat, frozen meat, specialty poultry and egg products, seafood, grain and oil products, and other popular foods. The supplier's existing distribution channels cover supermarkets, vegetable markets, retail stores, and online platforms, among others. The company believes that the cooperation with the supplier will create synergies for both parties, enabling the Group to diversify its business and sources of revenue by sourcing high-quality food products from the supplier (as a mature market participant) and using the company's distribution resources to enhance the supplier's market influence, thereby promoting the Group's existing dining business. To fully leverage the competitive advantage generated by the distribution channels under the strategic cooperation agreement, the company established a wholly-owned subsidiary, JiaMiFang (Nanjing) Dining Management Co., Ltd., in Nanjing, Jiangsu Province, China in June 2024, to develop dining and related supply chain businesses throughout China.

In addition, the director believes that the Group will be able to leverage its mature experience and professional knowledge in the dining industry to develop its food sales and distribution business, thus further diversifying the Group's sources of revenue and ultimately enhancing its overall financial performance.