Business
Memorandum of Understanding signed to create JV
Memorandum of Understanding signed to create JV.
About this update from Sealand Capital Galaxy Ltd.
[{"type":"text","content":"\n \nRNS Number : 0029B Sealand Capital Galaxy Limited 04 June 2019 \n\nFor release: 07.00, 4 June 2019\n \nSealand Capital Galaxy Limited\n(\"Sealand\", or the \"Company\")\n \nMemorandum of Understanding signed with Guangdong HuaCheng to create Joint Venture company\n \nSealand 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\"). \n \nTencent 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. \n \nMerchants 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.\n \nThe 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. \n \nTwo other platforms will also be set up...