Star Metro - Ficus Technology Holdings Limited (8107.HK) Distributes Products from China Co-op 832 Platform Expand Product Offering, Enhance Margin, and Support Local Agricultural Products

The Group will market and distribute the 832 Products on its e-commerce platform, Ficus Discovery (www.ficusdsc.com) ("Ficus Discovery"), and shall leverage its market resources and utilize international quality assurance certifications to facilitate the domestic and overseas distribution of 832 Products. It is the intention of the Group to cultivate a corporate client base and facilitate recurring bulk purchases through Ficus Discovery.

China Co-op has been operating an e-commerce platform, www.fupin832.com (the ''832 Platform'') since January 2020. The 832 Platform aligns with the People's Republic of China (the ''PRC'') Government's mission to support the agricultural producers in 832 poverty alleviation regions (the ''832 Regions'') by marketing the products produced from the 832 Regions (the ''832 Products'') to organizations and individuals across the nation. Over 70 central enterprises and 3,000 state-owned enterprises place orders through the 832 Platform, aligning their objectives with the directives of the PRC Government. The 832 Platform has generated cumulative sales exceeding RMB50 billion since its inception in 2020, showcasing more than 400,000 selections of products. The ACFSMC is a joint organization of the national supply and marketing cooperatives of the PRC with total sales of RMB7.3 trillion and a year-on-year increase of 12.6% in 2023.

For the purpose of implementing the scope of works under an existing framework cooperation agreement (the "China Co-op Agreement") between Liaoning Limeng Energy Trading Co., Limited* ("Limeng") and China Co-op, the Group has reached a supply chain management agreement with Limeng (the "Supply Chain Management Agreement"), for an exclusive term of ten years for providing services focusing on the distribution of the 832 Products from the 832 Regions.

For the exclusive provision of supply chain management services rendered by the Group under the Supply Chan Management Agreement, the Group shall entitle to 95% of the gross profit after deduction of income tax and other direct cost of sales with respect to revenue of Limeng that generate from the China Co-op Agreement.

As Limeng acquires the 832 Products directly from the 832 Platform, the supply chain management agreement will also bring a diverse array of more than 400,000 selections of products for Ficus Discovery to select from, further diversifying its current income streams while generating higher conversion and customer stickiness. By combining the Group's anti-counterfeit, traceability and marketing know-how, as well as extensive network of lottery kiosks and community service centers, the Group also reinforces its commitment to corporate social responsibility (CSR) and environmental, social, and governance (ESG), fostering the distribution of the 832 Products and support the economic development of the 832 Regions.

About Limeng
Established in 2022, Limeng is a mixed-ownership enterprise, with 40% of its equity interest indirectly owned by the state-controlled enterprise Liaoning Provincial Investment Group Co., Limited*. It primarily engages in a diverse range of activities including supply chain management, bulk commodity trading, internet-information technology, domestic and international trade agency services, and others. As a partner of China Co-op through the China Co-op Agreement, Limeng has been promoting and distributing 832 Products while also strives to support the domestic distributions and cross-border export of agricultural products from the 832 Regions.

About Ficus Discovery
Ficus Discovery is a comprehensive electronic commerce platform operated by the Group that offers distinctive properties including anti-counterfeit, traceability and marketing functions, which are able to boost customer confidence and reinforce the authenticity of the products. Along with its valuable connections with a number of lottery kiosks and local community service centres, the platform is well-positioned to be a trustworthy gateway for brands and manufacturers to access target customers.

Mr. Chan Ting, Chairman and Executive Director of Ficus Technology Holdings Limited commented: "We are honour to be part of this collaboration, facilitating the distribution of the 832 Products while contributing towards poverty alleviation and creating a better community. The strategic move is not only expected to enrich our product offerings and generate new revenue streams, but by considering that over 70 central enterprises and 3,000 state-owned enterprises place orders through the 832 Platform, this should also greatly expand our market reach, allowing us to establish long-term business relationship with notable corporate clients that can offer recurring and sustainable bulk purchase demand."

"The collaboration with the well-known 832 Platform should also further raise the profile of Ficus Discovery, attracting new traffic to the platform while improving existing customers stickiness and conversion. One of the key strength and objective of Ficus Discovery is to bring assured quality and authentic products to consumers, this latest business development opens up new exposures to the Group in attracting more strategic partners with the same believe and needs to jointly find the way to future e-commerce era where product quality, authenticity and consumer confidence are no longer the issues. Looking ahead, we will continue to expand our network and product offerings through strategic collaborations, striving to create long-term values for our customers through authentic products."

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About Ficus Technology Holdings Limited（8107.HK）
Ficus Technology Holdings Limited is an innovative supply chain management service provider, mainly focusing on the sales of apparel products along with the provision of relevant supply chain management services. The Group's advanced supply chain management services include anti-counterfeit, traceability, and marketing functions, capable of protecting brand equity for both apparel and other products.

CONTACT:
Catherine Yu
[email protected]
+852 2584 8735

SOURCE: DLK Advisory Limited

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