TONTINE WINES (00389) and Tonghua City Supply and Marketing jointly establish Yalujiang Supply and Marketing.

TONTINE WINES (00389) announced that the company has established a new subsidiary named "Yalu River Valley Sales and Distribution (Jilin) Co., Ltd." (Yalu River Sales and Distribution) in Tonghua City, Jilin Province. The group holds 70% equity of the new subsidiary through its subsidiary "Yalu River Valley (Jilin) Technology Co., Ltd." The remaining 30% equity of Yalu River Sales and Distribution is held by "Tonghua Supply and Marketing Investment Development Co., Ltd." (Tonghua City Supply and Marketing), a wholly-owned subsidiary of "Tonghua City Supply and Marketing Cooperative Union". The Board believes that this strategic cooperation will bring business opportunities to the group. Yalu River Sales and Distribution will fully utilize the distribution network or platform of supply and marketing cooperatives throughout the country to promote wine sales in mainland China and enhance the procurement network of Shenzhen Agricultural Products Group. The group will benefit from the strengthening of the distribution network, allowing more products to be exposed and sold in local supermarkets, the national cooperative distribution system, and retail stores. This will improve the quality and quantity control of raw material supply, as well as expand and promote the distribution of other Shenzhen Agricultural Products Group products within the supply and marketing cooperative system, thereby expanding the distribution channels and enhancing the group's revenue. Through this cooperation, the network will help the group modernize its supply chain management, electronic sales, and market promotion, achieve inventory control and warehousing systems, and improve delivery and logistics services. It is also an opportunity for the group to explore any future development in recycling renewable resources through these systems or networks and to connect with state-owned capital for resource sharing in the field of business, achieving both social and economic benefits.