BEIJING, March 22, 2016 /PRNewswire/ -- On March 18, China Huiyuan Juice Group Limited (the "Company", HKEx stock code: 1886), a leading vertically-integrated fruit and vegetable juice producer in China, announced that a wholly owned subsidiary of the Company entered into a shareholders' agreement with a subsidiary of Yeo Hiap Seng Limited ("YHS") to establish a joint venture company (the "JVC") in Malaysia for the business of fruit and vegetable juice production and distribution.
The JVC is formed by combining the production management, distribution and marketing expertise from YHS, and the technical capacities, know-how and raw material supply capabilities from the Company. Both Parties agreed that the JVC shall start its operation in Malaysia, and gradually expand its business coverage in other markets as agreed by the Parties. The share split of the JVC is 50:50, and a board of directors will be established to supervise its management and operation.
The Company believes that the JVC will combine the advantages and expertise that each of the Parties to effectively explore the category opportunities of Malaysia and other potential markets in the future. Thus, the Board considers the JVC will be beneficial to the future growth and business development of the Company and is in the interests of the Company and its shareholders as a whole. The Company also intends to strengthen business cooperation with YHS in the Chinese market where opportunities arise.
About China Huiyuan Juice
China Huiyuan Juice Group Limited, a leading vertically-integrated fruit and vegetable juice producer in China, is principally engaged in the production and sales of concentrated juice, puree, fruit juice, fruit and vegetable juice, beverages, water and other drinks. As at 30 June 2015, according to the research by Nielsen, Huiyuan Juice is the biggest manufacturer of 100% juice and nectars, as the market leader with market share of 64.8% and 43.3%, respectively, each by sales volume. Huiyuan Juice has a sales network across China and national production plants, the Group's juice products are exported to the United States, Japan and other countries and regions.
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SOURCE China Huiyuan Juice