DCH and COFCO Womai Sign a Strategic Co-operation Agreement to Develop Food Business 
Dah Chong Hong Holdings Limited (“DCH”; stock code:01828) and Womai, a food e-commerce platform under China National Cereals, Oils and Foodstuffs Corporation (“COFCO”), signed a Strategic Co-operation Agreement earlier,marking the start of a strategic alliance in developing global food chain business with special focus on imported food products.

As the leading food online shopping platform in mainland China, Womai has a strong sales network and rich experience, with a well-developed cold chain storage system and high quality control standards. In addition, leveraging on COFCO’s global resources,Womai has already established an extensive global food sourcing supply chain. On the other hand, DCH is a trusted trading conglomerate in Greater China, with strong business foothold in automotive, and food and consumer products businesses. The Group has rich experience in food business and has forged a Total Food Supply Chain, covering upstream food production, midstream distribution and downstream food retailing business. Besides distributing numerous internationally well-known food brands in Hong Kong and mainland China, DCH also has the capability to source quality products around the world. Our comprehensive logistics support and seamless cold-chain network in key cities also provide strong backup for the food business.

The signing of the agreement marked an important milestone for cross-strait collaboration in the food industry. On one hand, Womai provides an e-commerce platform for DCH to distribute internationally renowned food items, with special focus on imported food, to customers in the PRC, offering them a wider product choices and a higher quality shopping experience. On the other hand, DCH enables Womai to connect with overseas suppliers directly, which widens its product offering and lowers the procurement costs. On top of the above collaborations, both parties will also explore the possibility of cooperating in cold chain and logistics business development. Through this alliance, both DCH and Womai will be able to complement each other’s strength and create synergies.

It is believed that DCH and Womai could join hands to develop China’s food market, in turn increase the competitiveness of both sides and enrich customers’ choices.