Manguan Group (03390) issued an announcement. On December 15, 2023, the company signed a master trading agreement with China Runtang...
According to Zhitong Finance App, Grand Quan Group (03390) announced that on December 15, 2023, the company entered into a master sales agreement with China Runtang. According to this, (i) the company (for itself and on behalf of its subsidiaries) conditionally agreed to buy and China Runtang conditionally agreed to sell China Resources products, and (ii) the company (for itself and on behalf of its subsidiaries) conditionally agreed to sell and China Runtang conditionally agreed to buy Slam products.
The Slam products sold to China Runtang under the main sales agreement are proprietary Chinese medicines, health products and other health products sold by the Group. The China Resources products to be purchased by the Group under the main sales agreement are mainly products manufactured/distributed by China Resources Tong.
Huaruntang has been a Group customer since 2015 and has always been one of the Group's main customers. To further strengthen the business relationship between the Group and China Resources Tong, the Group also hopes to purchase a number of products from China Resources Tong to further diversify its product range and expand its supplier base. Furthermore, groups are generally granted short-term credit only and are required to make bulk purchases when purchasing products from other brand owners, manufacturers, or authorized distributors, which usually take longer to sell. As a result, the relevant procurement arrangements will adversely affect the Group's cash flow and the Group's ability to launch more new products at once. By entering into master sales agreements, the Group can, on the one hand, use China Runtang's retail network to provide successful products to more consumers, and on the other hand, expand its existing supplier base and product supply, and enjoy more favorable payment terms.