Date: 25 May 2017 Total 2 pages
To: Business/ Investment/ China Page Editor

Tianyi (Summi) Launches Internet+Internet of Things Business Model
CCTV Chose Tianyi (Summi) As A Subject For Promoting Safe Products

Hong Kong-listed orange juice producer Tianyi (Summi) Holdings Limited ("Tianyi (Summi)" or the "Company", stock code: 0756) today announced its plan to launch Summi fresh orange juice smart vending machines in various cities in China. These smart vending machines apply Internet of Things ("IoT") technology for operation and inventory and restocking management. Big data can be collected through these smart vending machines and be used to enhance the Company's market development efficiency and cost effectiveness of selling activities. Tianyi (Summi) aims to install 20,000 smart vending machines in China in the next three to five years, through self-operation or cooperation, as the key innovative sales channels for its fresh orange juice.

Apart from the announcement of the geographical coverage of its smart vending machines, Tianyi (Summi) today also entered into strategic cooperative agreements with three independent third parties, namely Siteduo Cultural Communication Company Limited, Shanxi Fuying Product Trading Company Limited and Fuwa Maoyi Company Limited. These enterprises have experience in vending machines operations and/or business connections in each of their cities of operation. They will be the local partners of Tianyi (Summi) in Xiamen, Wuhan and Hangzhou respectively, to develop a network of smart vending machines for the Company.

As of now, Tianyi (Summi) has set up smart vending machines in Beijing, Shanghai, Qingdao, Hangzhou, Wuhan and a number of cities in Fujian Province for pilot run. The smart vending machines focus on a single product, and they are mainly installed in hospitals, which exhibit huge demand for health drinks and high traffic, as well as schools and appropriate public places. Sales are targeted at children and women. According to the National Health and Family Planning Commission, the total number of visits to medical and health institutions across the country from January to November 2016 amounted to 7.09 billion, representing a 2.3 per cent year-on-year increase; 2.9 billion of which were hospital visits, up by 5.6 per cent year-on-year.

Tianyi (Summi) plans to install approximately several thousand smart vending machines in 2017. Mr Sin Ke, Chairman of Tianyi (Summi), said that the Group will gradually expand the network for its smart vending machines, according to their operations in different cities and consumption pattern of the local markets, through self-operation or third party cooperation.

Tianyi (Summi)'s smart vending machines are connected with the operations center via the Internet. According to the operational data of each vending machine, Tianyi (Summi) can obtain real time sales information of the entire fleet of vending machines, and achieve highly efficient logistics and warehousing management based on these data. Tianyi (Summi)'s management can, via mobile applications, have access to the latest operational data of each smart vending machine. Consumers can purchase products from the vending machines and settle through online payment. Not only can the smart vending machines be connected to the new sales model of the Company's e-commerce platform via IoT, but they can also enable the Company to analyse big data by gathering customers' information. Basing on the analysis, the Company can make effective allocation of sales resources. Smart vending machines are equipped with digital displays, which can be used to market products and Summi brand, while promoting healthy eating to the public. These displays can also be used for advertising other products.

Mr Sin noted: "In the age of Internet+Internet of Things, the Group has to utilize advanced technology to directly control its sales channels which have direct contact with consumers. Smart vending machines have the advantages of large cold storage space and easy operations and maintenance. They are "around the clock super salespeople". Unlike traditional distribution and retail network, their operational management is more cost effective."

Tianyi (Summi) adopts online to offline ("O2O") sales model. At present, Tianyi (Summi)'s fresh orange juice is available via 1,500 traditional distribution outlets across the country. The Group recently formed a strategic alliance with Sun Generation Limited, to jointly establish "Eat East Shop" to sell its products. In addition, Tianyi (Summi) also sell its products through its own online sales platform and Summi "Zero Distance", and other e-commerce platforms including JD.com, Tmall, Yihaodian and mall.icbc.com.

Mr Sin is of the view that the central government pays high regard to the safety of food products and strives to create new opportunities for the development of a healthy business environment for those committed to be a scrupulous food and beverage company assuming social responsibilities.

In addition, Tianyi (Summi) entered into an agreement with CCTV (China Central Television) today. Tianyi (Summi) has been chosen as a subject for one of the episodes in a documentary series produced by CCTV, in search of safe products and scrupulous companies.

CCTV "OUTLOOK" channel will produce a documentary series entitled "Trace", which is in line with the State's preparation for expediting the implementation of a tracing system for important products in order to tighten management of product quality and requirements for standardization. This program focuses on tracing the origin and safety of products and identifies excellent companies, with an aim to create a healthy business environment and advocate social responsibility. CCTV "OUTLOOK" channel is available via 31 provincial broadcast television wired networks in China in over 230 cities, reaching 160 million wired digital television viewers and more than 480 million population.

About Tianyi (Summi)
Tianyi (Summi) is principally engaged in the production and sale of frozen concentrate orange juice (FCOJ), fresh orange juice and related products (such as orange pulp and orange fibre), as well as fresh oranges. With its vertically integrated business model, the Group runs five highly efficient production plants which are strategically located in China's three major citrus growing areas, namely Chongqing, Hunan and Fujian. The Group is one of the few fully-integrated orange juice manufacturers operating its own upstream orange farms.

Tianyi (Summi) launched fresh orange juice under its Summi brand in early 2015. This product is 100% freshly squeezed orange juice (not from concentrate), thereby retaining effectively the natural flavour and nutrition value of orange juice. The product has been sold in major supermarkets in major cities in China such as Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Chengdu and Nanjing as well as in Hong Kong.

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