(Alliance News) - Asia-focused digital investor Sealand Capital Galaxy Ltd on Monday said it has entered a joint venture with Jiangmen Xiaoming Internet Technology Ltd to provide marketing services in China, through popular short-video social network TikTok.
Sealand said the two companies will form a new company, subject to state approval in China. The London-listed firm will hold the majority of shares in the joint-venture.
Jiangmen owns the Walk You Through The UK account, on Chinese messaging app WeChat.
Sealand said: "The "Walk You Through The UK" WeChat account has around 700,000 Chinese and British followers and is used by merchants to disseminate news of new products, promotions and 'hot topics' to the account's followers. The account provides effective and low-cost exposure for Chinese and British merchants to Chinese travelers and tourists."
Through the joint-venture, Sealand will launch Walk You Through The UK on popular social media video applications TikTok, which has 500 million active users, and Kuaishou, which has 340 million active users.
The company explained: "Sealand will create original short videos, aimed at providing interesting information to Chinese travelers on the UK and exposure to unique brand products, which can be offered by merchants to followers of the account. Adverts will be embedded in the short videos, as well as product introductions, promotions and links to make purchases."
Executive Chair Nelson Law said: "The aim of all our products is to help increase the effectiveness of advertising campaigns and drive sales for merchants wishing to take advantage of the huge potential of the Chinese market and of Chinese travelers overseas.
"Due to the high follower numbers of the official "Walk You Through The UK" WeChat account, the JV will be ideally positioned to create a number of marketing and advertising initiatives allowing British brands and merchants to enter the profitable and growing Chinese cross-border e-commerce market."
Sealand also reported progress by a joint-venture in Hong Kong, in which it has a 55% stake. The New Sky Global digital and marketing venture has so far produced 16 TikTok videos for property developer Suncity Group Leisure Services Ltd.
The London-listed firm said the videos have generated 872,000 likes, received over 38 million views by potential Suncity customers, and added in excess of 170,000 new social media followers.
Law added: "New Sky Global has proven itself to be a highly effective brand-builder, and the results it has achieved for its biggest client, the Suncity Group, have exceeded targets. Not only has this earnt the company healthy revenues, but the successful case study will help New Sky Global win other opportunities within the Suncity Group; as well as with other multinational corporations."
Shares in Sealand were untraded at 0.50 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Sealand Cap (SCGL)