Leveraging the many years of experiences in pet products manufacturing and distribution, SUGA is expanding its products and services in the pet business. By integrating SUGA's IoT (Internet of Things) technology, manufacturing capabilities and marketing expertise, and mobile/online application know-how, SUGA is establishing an ecosystem to serve the pet owners with full services from Connected Pet Appliances, Premium Quality Pet Foods, Online Pet Owner Social Community and O2O Pet Products Supply Chain.

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O2O Platform

Growing disposable income and emerging middle class in China are driving the fast growth of pet market in the country. In recent years SUGA has set up physical stores in China and an online retail platform to foster brand awareness and garner customer loyalty. To more actively pursue this high potential market, we will connect pet lover community through online platform in China, complementing the companies already set up within the free trade zones in Tianjin and Nansha for handling the offline business for the Northern and Southern China markets respectively. We believe the strategic setup of O2O platform will present enormous opportunities for the Group in exploring China's pet product market.

SUGA is also working with partners in China to develop the Pet Owners Social Network Platform, Chongmi (寵米). The project commands a total investment of approximately RMB20 million. Chongmi Investment mainly invests in and develops the quality pet food and goods market in mainland China and provides pet-related peripheral services like pet training, pet hospital and foster care services. An @Chongmi WeChat public account has been set up. It has also set up a pet food and goods distributing mall to help it further capture the mainland market. On the hardware side, Chongmi Investment is developing its first smart pet leash that can prevent pets from getting lost and also monitor their health. The product is expected to be ready for launch to the mainland market in the 4th quarter of 2016.

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