News blog
Sweet China
- BY: Andrew Hore |
- POSTED: 19/07/2009 |
Sweet China has secured a distribution agreement with its planned Chinese manufacturing joint venture partner.
The chocolate confectionery supplier has finalised a two way distribution agreement with Shanghai Guan Sheng Yuan Company (The White Rabbit Company), which made Chairman Mao’s favourite sweets. This is on top of the joint venture with Sweet China which takes the White Rabbit brand into the chocolate market.
Sweet China will sell White Rabbit products outside of China and SGSY will sell Sweet China’s Jessica Walker, Lings and Candycraft brands in China.
The Chinese confectionery market is growing at 8% a year.
A proposed new debt facility of £400,000 will enable Sweet China to finance stock ahead of Christmas. The company has to raise at least £400,000 from a share issue before it can obtain the debt facility. If this cash can’t be raised then there is a question mark over the future of the business. The peak selling season has already started.
Sweet China raised £177,530 in a placing during February 2009. Sweet China also needs to raise up to £10m to finance the manufacturing joint venture with SGSY.
At 3p a share, Sweet China is valued at £2.93m.
Trading has been poor in recent months but the underlying business is still profitable.
Results for the year to April 2009 will be published in August.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|