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HARRIS TECHNOLOGY GROUP LIMITED — M&A Activity 2018
Jan 30, 2018
65074_rns_2018-01-30_62d331d2-54d9-496a-bea1-bf2610dd13f7.pdf
M&A Activity
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Harris Technology Group Limited ASX:HT8
31 January 2018
ASX and Media Release
Joint Venture Agreement Signed
Harris Technology Group Limited (ASX: HT8 ) ( Harris Technology or the Company ) today announces that it has signed an agreement to set up a Joint Venture ( JV ) in Hong Kong with Wong Sun Hing Limited ( WSH Group ) to fast track its M2C strategy. HT8 will take a 51% of the shareholding and WSH Group taking on 49% in the JV.
The new JV will see Wanling Square Shopping Mall based in Guangzhou, China – a subsidiary of WSH Group cooperate with HT8 to offer a comprehensive range of products covering toys, home decoration, fashion, travel goods, office stationery and textile etc. to Australian consumers via the M2C cross boarder format. Wanling Square is a dedicated commercial building with 7 floors of more than 1000 of various size of shops, of which many are manufacturers and wholesalers. The size of the floors covers more than 40,000 square meters with more than 1 million products on offer.
Australian consumers can benefit from the low prices and the vast range directly from the manufacturers through this JV business operation. Taking advantage of Wanling’s landlord’s position and well established business reputation, a great benefit of the JV is that the company does not outlay any cash up front for the products sourced from the shops/outlets because the products will be pre-sold to Australian consumers before these products procured and shipped to the customers in Australia.
While goods are shipped from overseas from the sources directly, HT8 will provide a local support for Australian customers. Customers can get after sales support from the HT8 support team based in Australia without having to worry about product return or quality issues.
The range of the products will not cover IT, Electronic and Technology products. The vast range of consumable products broaden our offerings which differentiate from current IT, Electronics and Technology products.
The Board of HT8 is pleased to see the M2C business strategy is finally being implemented.
-ENDS
For further information, contact:
Andrew Plympton Chairman M: +61 418 310 713 E: [email protected]
Garrison Huang Managing Director M: +61 412 164 286 E: [email protected]