Gelonghui September 7?Tongtian Liquor Industry (00389.HK) noticeThe board of directors has established a new subsidiary "Yalu River Valley supply and Marketing (Jilin) Co., Ltd." in Tonghua City, Jilin Province. The group holds a 70% stake in the new subsidiary through its subsidiary "Yalu River Valley (Jilin) Technology Co., Ltd.". Another 30% of Yalu River supply and marketing is held by Tonghua supply Marketing Investment Development Co., Ltd. ("Tonghua City supply and Marketing"). Tonghua supply and Marketing is a wholly owned subsidiary of Tonghua supply and Marketing Cooperatives.
The board of directors believes that strategic cooperation will bring business opportunities to the group. Yalu River supply and marketing will make full use of the national distribution network or platform of supply and marketing cooperatives to promote wine sales on Chinese mainland and improve the purchasing network of agricultural products. The Group will benefit from the strengthening of its distribution network to enable more products to be exposed and sold in local supermarkets, national cooperative distribution systems and retail stores, and to improve the quality and quantity control of the supply of raw materials, and to expand and promote the distribution of other agricultural products in the supply and marketing co-operative system, thereby expanding distribution channels and enhancing the Group's revenue.
Through this cooperation, the network will help the Group to modernize inventory control and warehousing systems, delivery and logistics services in supply chain management, electronic sales and marketing. This is also an opportunity for the group to explore any future development of recycling renewable resources through these systems or networks, and to share resources in the field of business with state-owned capital, so as to achieve both social and economic benefits.