Memorandum of Strategic Collaboration between Global International Footwear (Hong Kong) Co., Ltd and HongPeng Fujian Shoes & Garments Co., Ltd dated 29 July 2019

We refer to your Company’s announcement dated 29 July 2019, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1. Please substantiate and provide further elaboration on your statement that “both parties have enjoyed progressive growth through the said Memorandum of Collaboration (“MOC”)” entered into with Global International  Footwear (HongKong) Co., Ltd (“GIF”) on 23 May 2017;
2. It was stated in your announcement dated 25 May 2017 that both parties [i.e. HPFS and GIF] agreed that the Original Design Manufacturer production orders from GIF to HPFS in the next twenty-four (24) months shall not be less than RMB160 million in aggregate. In this regard, please quantify the final production orders upon the expiry of the MOC on 22 May 2019. In the event the final production orders is less than RMB160 million, to state the reasons thereof;
3. To highlight the differences between the MOC entered into on 23 May 2017 and the MOSC entered into on 29 July 2019;
4. To provide further elaboration on your statement which states that “the fundamental purpose of this MOSC is to achieve mutual benefits and mutual growth with mutual respects on privacy and markets and to optimise the competitive advantages and strengths of both parties; and
5. It is represented in your announcement that both parties agreed that the Original Design Manufacturer and/or Original Equipment Manufacturer production orders from GIF to HPFS in the next twenty-four (24) months shall not be less than RMB400 million in aggregate, which is RMB240 million more than the production orders agreed in the MOC entered into on 23 May 2017. In this respect, please provide the degree of certainty on the achievability of the production orders of RMB400 million.   

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully,

HENG TECK HENG

Vice President, Issuers
Listing, Regulation
[JT]

cc : Market Surveillance Dept., Securities Commission (via fax)