Stella International : Continuing Connected Transactions - Renewal of Exclusive Distribution Agreement

About this update from Stella International Holdings Limited

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Stella International Holdings Limited 九 興 控 股 有 限 公 司 * (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1836) CONTINUING CONNECTED TRANSACTIONS RENEWAL OF EXCLUSIVE DISTRIBUTION AGREEMENT NEW CAH EXCLUSIVE DISTRIBUTION AGREEMENT Reference is made to the announcement of the Company dated 19 July 2017 in relation to, amongst others, the continuing connected transactions contemplated under the Prior CAH Exclusive Distribution Agreement. Pursuant to the Prior CAH Exclusive Distribution Agreement, SFC shall supply the Stella Branded Products to the CAH Group and grant CAH (for itself and as trustee for the benefit of the CAH Group) the exclusive right to distribute the Stella Branded Products in the PRC. Given that the Prior CAH Exclusive Distribution Agreement will expire on 31 December 2019, on 20 December 2019, SFC as supplier and CAH as distributor entered into the New CAH Exclusive Distribution Agreement to renew the Prior CAH Exclusive Distribution Agreement on substantially the same terms for three years until 31 December 2022. It is expected that the aggregate amount of the consideration which may be collected by SFC from the CAH Group in connection with the supply of the Stella Branded Products under the New CAH Exclusive Distribution Agreement will not exceed RMB250 million for the year ending 31 December 2020, RMB280 million for the year ending 31 December 2021 and RMB330 million for the year ending 31 December 2022. For identification purpose only 1 LISTING RULES IMPLICATION As at the date of this announcement, the issued share capital of CAH is held as to 60% by Max Branding, a wholly-owned subsidiary of Max which is indirectly owned as to approximately 64.75% by Mr. Chiang Chih-Chung. Mr. Chiang Chin-Chung is the brother of Mr. Chiang Jeh-Chung, Jack, a non-executive Director. Therefore, under Chapter 14A of the Listing Rules, CAH is an associate of Mr. Chiang Jeh-Chung, Jack and a connected person of the Company, and the transactions contemplated under the Ne...

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