Alpha Enterprises (00948) entered into a distribution agreement with Bellamy to expand its dairy products business

Alpha Enterprises (00948) announced that on 4 January 2022, Hong Kong Welles Trading Limited (a wholly-owned subsidiary of the Company), as a distributor, entered into a distribution agreement with Bellamy Organic Food (Hong Kong) Limited (Bellamy Hong Kong) (Distribution Agreement A) and another distribution agreement with Bellamy's Organic Pty Ltd (Bellamy Australia) (Distribution Agreement B, Together with Distribution Agreement A, collectively referred to as the "Distribution Agreement"), Welles Trading will be appointed as distributors to distribute certain milk powders and baby food products owned and enhanced by Bellamy Hong Kong and each of their respective related companies in China, Australia or Bellamy Hong Kong or other areas approved by Bellamy Australia, as the case may be.

Under Distribution Agreement A, which runs for a period of 12 months from 4 January 2022 and renewable for a further period of 12 months, Willers Trading will distribute, on a non-patent basis, as a distributor in China and any other area approved by Bellamy Hong Kong through the online retailer website of Bellamy Hong Kong and its related companies.

Under Distribution Agreement B, for a period of 12 months from 4 January 2022, Wheelers Trading will distribute, on a non-patent basis, formula and baby food owned and manufactured by Bellamy Australia and its related companies through gift shops, warehouses and major customer segments through gift shops, warehouses and major customer base electronic retailers in China on a non-proprietary basis.

It is reported that Bellamy, a well-known infant nutrition brand in the Australian and Chinese markets, was acquired by China Mengniu Dairy Co., Ltd. (Mengniu) in 2019, contributing more than RMB1 billion to Mengniu's revenue in the financial year of 2020. Bellamy's brand positioning is "the pursuit of the ultimate organic, natural organic", and its main products include organic infant formula and organic baby rice powder.

According to the announcement, one of the Group's main businesses is the trading of milk powder and baby food (milk products business). Considering Bellamy's reputation and the quality of its products, the Directors believe that by expanding the number of brands selling and/or distributing milk powder and baby food, the Group's products will be more diversified and conducive to the performance of the dairy products business. Entering into a distribution agreement will make a positive contribution to the Group's financial performance and bring potential to enhance shareholder value.