05
SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
EXECUTIVE CHAIRMAN’S
STATEMENT
Product
– From a supplier offering apples and garlic from
China, we have now expanded our product selection to
include fresh fruits from all over the world, including citrus
fruits, pears, blueberries, avocados, young coconuts,
mangos and other fruit related consumer products. With
a sizeable third-party network of physical stores and a
growing online presence, we aim to introduce more quality
products to existing markets and customers, and build up a
strong product base to appeal to all demographics.
With the implementation of the “Network x Geography x
Product” business model, we have also opened discussions
with various parties on the best way to capitalise on our
strong brand equity for growth in new and existing business
markets.
BUILDING SUCCESSFUL PARTNERSHIPS
For many years, we have traditionally focused on the
business of buying from rather than selling products to the
People’s Republic of China. With rising disposable incomes
and increasing consumer focus on food quality, we identified
the PRC as a fast-growth market, and set our sights on
selling into the Chinese market.
Over the course of FY2015, we made inroads into the
Chinese market via a commercial partnership with Harvest
Season, operated by Mr Tony Zhang. Harvest Season is a
fast-growing wholesale and retail fruit business with six
retail stores in the PRC, supplemented by an online sales
channel. Our initial partnership was mutually beneficial, and
it culminated in a proposed joint venture, which subsequently
did not materialise. Nonetheless, we maintained our
commercial relationship with Harvest Season, and sought
to find other means of collaboration.
In February 2016, we entered into an acquisition agreement
for a 12% stake in Harvest Season, via a conversion of our
outstanding accounts receivable amounting to S$1.4 million.
We saw this as the first step towards maintaining and
tapping into the goodwill and the brand presence of the
SunMoon brand that Harvest Season has already created
in the Chinese market. We believe that the relationship with
Harvest Season provides us the initial entry and access into
the largest and fastest-growing market of customers in the
PRC. This partnership has allowed us to gain an invaluable
insight in learning the preferences of Chinese consumers,
and boost our product visibility and brand recognition.
Such partnership with Harvest Season will be the first
amongst the many to come. I am truly humbled by the many
quality partners that are interested to work with us and see
the value of our brand and business model. I trust that we
will work earnestly and sincerely with our partners to find
the best way forward as we thread carefully in a difficult
global environment.
MOVING FORWARD
With a new business model in place and a current estimated
current sales network of about 13,000 points of sales across
Asia and the Middle East, we are cautiously optimistic of our
potential for success. There are still many challenges in the
global market facing us but we will continue to leverage on
our new business model. We will work towards establishing
new sales and supplier channels, expanding our product
range and entering new markets.
By bringing quality products to our customers, we look to
build a ubiquitous brand of choice recognised by consumers
as a trusted and healthy lifestyle brand.
ACKNOWLEDGEMENTS
On behalf of SunMoon, I would like to extend a warm
welcome to Mrs Jessie Peh, who joined us as an Independent
Director in November 2015. Mrs Jessie Peh brings with her
a wealth of experience, and we hope to be able to benefit
from her experience. I would also like to express sincere
thanks to Mr Mike Martin who has decided not to seek for
re-election for his contribution to the company’s growth.
I thank all our shareholders and various stakeholders, for
their support throughout the years. While we have faced
many difficult periods, It is only with your support were we
able to pull through our darkest moments.
To my fellow directors of the Board, my management team
and my colleagues, your diligence and dedication to our
cause has been inspirational, and I look forward to being
able to tap on your energy as we do our best to grow
SunMoon into a truly global brand.
Thank you!
Mr Gary Loh
Executive Chairman
