Last checked at 4 Jun 2019 07:00
For release: 07.00, 4 June 2019
Sealand Capital Galaxy Limited
("Sealand", or the "Company")
Memorandum of Understanding signed with Guangdong HuaCheng to create Joint Venture company
Sealand Capital Galaxy Limited (LSE: SCGL) is pleased to announce that it has signed a Memorandum of Understanding ("MoU") with Guangdong HuaCheng Technology Limited, the national agent of Tencent Regional Marketing Pioneer ("Tencent RMP Car"), to form a new equity Joint Venture company ("JV") that will obtain and own a license to operate Tencent RMP Car's activities across China. Sealand will own 55% of the JV, which is currently undergoing the necessary regulatory approval process to become a Variable Interest Entity ("VIE").
Tencent RMP Car is one of the brand names under Tencent RMP, which is a leading Chinese online portal developed by Tencent. It provides car related information, news, professional reviews and sales enquiry services. Chinese consumers typically use Tencent RMP Car when considering the purchase of a vehicle and the promotional activities hosted by the platform have a high consumer uptake.
Merchants choose to advertise on Tencent RMP Car because its consumer targeting is precise and makes marketing campaigns more effective. Consumers tend to be brand loyal to the platform and users are mostly high-income earners with considerable purchasing power, who typically rely solely on Tencent RMP Car for their information. The platform divides registered users into different groups according to the information that they willingly provide during Tencent RMP Car's promotions. This helps merchants to advertise based on specific characteristics of users.
The JV proposes to obtain the right and license to be the platform implementer and to develop mini programmes, plan influencer activities and carry out advertising campaigns. It will also provide bespoke marketing advice to merchants, allowing them to create self-driving car demonstrations and to interview professional reviewers. Merchants will also be empowered to distribute creative output on other platforms, such as WeChat Moment.
Two other platforms will also be set up. Firstly, The Digital Call Centre is a CRM tool that will allow a salesperson to contact a user directly, to understand their exact needs and to maximize the chances of completing a sale. Secondly, the Wecar system will analyse data, with the help of Tencent Cloud and its AI systems, to provide more accurate and precise targeting for marketing campaigns.
Nelson Law, Executive Chairman of Sealand, commented:
"This is an exciting venture for Sealand as it gives us access to the Chinese automotive market. We will seek to bring international car manufacturers into the considerable opportunity afforded by the market in mainland China. Additionally, there is a further opportunity with external funding to create a business to businesses car financing scheme within the JV company. Such a scheme would lower car dealers' risk, whilst benefitting from revenues such as interest and garage and management fees. I look forward to updating the market further on these initiatives in due course."
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Enquiries:
Sealand Capital Galaxy Limited
Law Chung Lam Nelson, Executive Chairman
+44 (0) 7537 959788
Barney Battles, Non-Executive Director
+44 (0) 778 976 6242
Belvedere Communications
John West
+44 (0) 2036 872756
Llew Angus
+44 (0) 2036 872757
Notes to Editors:
· Sealand Capital Galaxy Limited (LSE: SCGL) is engaged in the investment and acquisition of IT and social media businesses in the APAC region with high growth potential.
· The Company's Shares are traded on the Official List of the London Stock Exchange's main market for listed securities under the ticker SCGL.
· Further information on Sealand is available on its website http://www.scg-ltd.com/