About the Company

Incorporation

ADSL is a Cayman Islands holding company formed in April 2007 and holds the following two groups of subsidiaries; Panda Express China Limited and Vitality Development Holdings Limited.

The main country of operation is in the People's Republic of China.

Registered Office

Codan Trust Company (Cayman) Limited,
Cricket Square,
Hutchins Drive,
P.O. Box 2681
Grand Cayman, KY1-1111
Cayman Islands

Background

The ADSL Group provides distribution and manufacturing services for foreign and PRC companies to import and sell their branded beverage and food products in the PRC. The Group also provides procurement and logistic solutions to supermarkets, hotels and clubhouses, selected high-street restaurants and bars, cafes and bakeries, together with beverage wholesalers and retailers, generally referred to in the trade industry as on-premise or HORECA, (being hotel, restaurant and cafe) accounts.

The Group distributes a range of branded beverages, including Tiger and Heineken beers, Snapple’s fruit drinks, as well as bottling a range of non-alcoholic beverages for retailers’ own brands, including Dia (a subsidiary of Carrefour, France).

The business started in 1998 in Shanghai, the largest and fastest growing regional beverage market in China. The Group’s management has been able quickly to capture a large share of this rapidly growing market by supporting foreign brands (including Heineken and Tiger beers) that seek local distribution but are hindered by the range of complex regulations, diverse distribution networks, widely scattered consumer demand centres and a range of local taste preferences. In addition, numerous negotiations have taken place in the last few months to secure contracts with a number of international and national supermarket chains for bottling and distribution of beverages under their private labels. Some of these negotiations are at their final stages of completion.

This joint venture extends the range of beverage products the Group can distribute and the Directors believe it will enhance the Group’s ability to supply a greater share of its customers’ beverage requirements by:

  1. distributing its existing product range to more retail outlets as its customers expand;
  2. introducing and selling additional beverage products to those customers;
  3. signing new retail and HORECA customers; and
  4. acquiring third party distribution networks that need additional products to meet their own expansion plans. In this way the Group plans to expand its market share as well as benefit from economies of scale in distributions and bottling. The Directors also believe that middle class consumers in China, who have demonstrated a rapidly increasing appetite for quality food and beverage products, o¡er the Company exciting growth potential.

We offer customers comprehensive solutions in the area of distribution, procurement logistics and manufacturing For local and foreign companies participating in the packaged food and beverage market in the PRC, the Group provides a comprehensive range of services:

  • importation and customs clearance assistance;
  • New product development;
  • product sourcing and manufacturing;
  • sales and marketing; and
  • payment collection.

The Group has secured distribution agreements as a preferred supplier with Tiger Beer, Heineken Beer and Snapple’s (owned by Cadbury Schweppes). The Directors believe its sales network should enable it to sign additional beverage brands in the future.

Established sales and marketing network

The Group has established its sales and marketing network in Shanghai and its neighboring cities.The Group currently serves approximately 400 direct HORECA accounts. Through its preferred wholesaler network, the Group also distributes to over 1,000 accounts. The Directors estimate that the Group’s direct accounts, together with its indirect accounts, have penetrated 10 per cent of the on premise market in Shanghai. The Directors believe that the Group has demonstrated its ability to develop in one of China’s more competitive beverage distribution markets. The Directors believe that the Group’s Shanghai business model can be replicated in other key cities throughout the PRC.