Gelonghui December 29th, derivative Group (06893.HK) announcementOn December 29, 2021, derivative Health Medicine (Guangdong) Co., Ltd. ("derivative Guangdong", the company's wholly-owned subsidiary) entered into a cooperation agreement with Hongli homologous Biotechnology (Weihai) Co., Ltd. to establish a new company, Pengzu Yan Museum (Guangdong) Brand Management Co., Ltd.
Under the cooperation agreement, the brand management company will open a chain store called Peng Zuyan Hall in the people's Republic of China to exclusively sell products supplied by derivative Guangdong.
The Board is of the view that through the establishment of a brand management company and the opening of a wide range of chain stores in China, the Group can further strengthen its product distribution channels and seize the huge business opportunities brought about by the fast-growing health care market in the PRC. In the opinion of the Board, the Cooperation Agreement is entered into on normal commercial terms and its terms are fair and reasonable and the proposed transaction under it is in the interests of the Company and its shareholders as a whole.