Mr. Xizhou Tong reports
CROWNIA HOLDINGS SIGNS OPERATIONS ADVISORY AGREEMENT
Crownia Holdings Ltd.
through its wholly owned subsidiary, Jinsili (Hong Kong) International Steel Holdings Co. Ltd., has entered into a 24-month-term operations advisory agreement with a non-arm's-length party named Shenzhen Time e-Supply Chain Management Co. Ltd. (TSC) for the purpose of improving and enhancing revenue growth opportunities by assisting the company with strategic sales planning and developing sustainable sales channels and customers through an on-line steel trading platform owned and operated by TSC, whereby the management of the company believes that the revenue of the company would be positively impacted in the long term by entering into the agreement.
Based on the agreement, TSC will provide numerous services to assist the company to reach certain sales targets for the period of an agreed timeline by both parties in exchange for a total consideration of 6.8 million Chinese yuan, which is equivalent to around $1.3-million. The consideration of 6.5 million Chinese yuan is deemed as a comprehensive fee. If TSC fails to deliver the targets for the period of the agreed timeline described in the agreement, the company shall have the right and be entitled to retrieve the comprehensive fee from TSC based on the agreed calculation in the agreement within 60 calendar days, and TSC shall also provide a financing commitment to the company of up to 6.5 million Chinese yuan and the company shall have the right to access the financing within 30 calendar days.
About Crownia Holdings Ltd.
As a specialty steel trading company, Crownia provides value add by identifying suitable suppliers for products that best suit customer needs, establishing distribution centres in optimal locations, and providing superior sales and after-sale services to customers.
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