HONG KONG, Feb. 27, 2015 /PRNewswire/ — RM Group Holdings Limited ("RM Group" or the "Company") (HKEx stock code: 8185) and its subsidiaries (the "Group") announced that it entered into a distribution agreement with Shanghai Dong Jiao Industrial Company Limited in respect of the distribution and sale of the Group’s products in the PRC.
Shanghai Dong Jiao Industrial Company Limited ("the Distributor"), is a company incorporated in the PRC and has the experience and expertise of promoting, distributing and selling of pre-packaged food in the PRC. It is an independent third party who is not connected with any Director, chief executive or substantial shareholder of the Group.
According to the distribution agreement, the Group appoints the Distributor as the sole distributor apart from Zhuhai UShopin Trading Co., Ltd. to distribute and sell certain of the Group’s products in the PRC. The Distributor shall purchase the Group’s products for sale in the PRC and shall not appoint any third party as its distribution agent unless with prior written approval of the Group. The Distributor is also responsible for advertising and promoting the Group’s products in the PRC, which the fees shall be borne by the Distributor. The Group also agrees to grant to the Distributor the rights to use the Group’s trademarks in the PRC for performing its duties as the Group’s sole distributor under the Distribution Agreement.
About RM Group Holdings Limited
RM Group Holdings Limited is principally engaged in the business of formulation, marketing, sales and distribution of health supplements and beauty supplements and products under its proprietary brand (including "Royal Medic") and private label brands specifically developed for and owned by a renowned retail chain of health and beauty products in Hong Kong and Macau (the "Distribution Facilitator"). The Group outsources most of its production to its suppliers and subcontracting manufacturers and the Group distributes its products mainly through the Distribution Facilitator. According to the industry report prepared by Ipsos Hong Kong Limited, the Group ranked third as a PCM health supplements provider in Hong Kong in 2012, with a market share of 10.4% in terms of retail sales value. According to the report of the independent global marketing research company, its best-selling product, Royal Medic Cs-4, ranked first in terms of sales value in the Cordyceps market in Hong Kong for six consecutive years ended August 2014.