Reach New Holdings Partners with Guangzhou Bancheng to Form a New Company, Taps into the Information Technology Market to Cultivate a New Growth Engine

Reach New Holdings Limited
2020-04-27 09:48 9088

HONG KONG, April 27, 2020 /PRNewswire/ -- An established labelling solution provider and one-stop garment accessories manufacturer and supplier based in the PRC, Reach New Holdings Limited ("Reach New Holdings" or the "Company", Stock code: 8471.HK); with its subsidiaries (the "Group") is pleased to announce that the Reach New Technology (Huizhou) Company Limited ("Reach New Technology"), a wholly owned subsidiary of the Company, entered into a Cooperation Agreement with Guangzhou Bancheng Information Technology Co. Ltd ("Guangzhou Bancheng"), and the jointly-established company, Guangzhou Banchengyun Information Technology Co. Ltd. ("Guangzhou Banchengyun") will become a subsidiary of the Company, for the purpose of tapping into the information technology industry to develop a business milestone of the Group.

Pursuant to the Cooperation Agreement, the registered capital of Guangzhou Banchengyun is RMB1 million, to which Reach New Technology and Guangzhou Bancheng will contribute RMB510,000 and RMB490,000 respectively, holding 51% and 49% of the equity interest respectively. Guangzhou Banchengyun will mainly engage in the development of applications for customers and the provision of information technology consultancy services, such as social customer relationship management.

The cooperation allows the Company to benefit from the existing information technology brand influence and resource advantages of Guangzhou Bancheng, which will bring the Company's new business relevant technology, know-how, expertise and human resources. Additionally, with the Company's abundant customer resources and funds, the joint venture will enable the Company to realize a diversified business layout by leveraging its existing customer connections, and become a new growth engine.

Mr. Lam Kai Yuen, CEO of Reach New Holdings Limited, said, "The information technology industry is one of the most preeminent industries in China under the rapid expansion of the scale and demand in the information technology market. With an eye towards the changing market environment, the Company, mainly engaging in providing labelling solution and garment accessories, has been actively exploring the possibilities of other businesses, seeking potential and sustainable business investments, and expanding its sales-driven sources while minimizing its investment risks through business diversification. We believe our cooperation with Guangzhou Bancheng will fully engage the synergies between the two parties, and provide good development opportunities for the Group to tap into the information technology industry. We expect the new business will open a new chapter for the Company and create new growth opportunities."

About Reach New Holdings Limited (stock code: 8471.HK)

Reach New Holdings Limited, listed on GEM of HKEX in July 2017, stock code: 8471.HK, is an established labelling solution provider and a one-stop garment accessories manufacturer and supplier based in the PRC, mainly engaging in three types of products: (i) printed products, (ii) woven labels, and (iii) printed labels. The Company also sources and sells other garment accessories such as tapes, hanging tablets, string locks, leather badges, buttons, and metal products, to customers in the PRC. With its good reputation, the Company is committed to providing quality products and services to customers including (i) garment brand companies, (ii) sourcing companies designated by garment brand companies, and (iii) garment manufacturers in the PRC. For more details, please refer to:

Source: Reach New Holdings Limited
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