Sinocera Group (01418): The revenue attributable to the US under the 2024 and 2025 regional revenue categories together with the revenue attributable to the final products distributed to the US is approximately HK$1,677 billion and HK$1,933 billion, respectively

Zhitong Finance App News, Shengnuo Group (01418) issued an announcement. As far as regional revenue classification is concerned, retail sales revenue is classified according to the location of relevant retail stores and consignment counters, while wholesale sales revenue is classified by the location of the relevant customer. This location is determined by the billing address recorded on the sales invoice. Therefore, sales to customers classified as being located in (i) mainland China and (ii) Hong Kong, Macau, Vietnam, other North American markets (excluding the US) and other overseas markets (collectively referred to as other regions) are separately attributable to mainland China and other regions, regardless of whether such customers subsequently sell, transport or distribute the relevant products to markets outside of mainland China or other regions (as the case may be), or manufactured the relevant products. Therefore, the regional revenue classification may not identify the final end market or place of consumption of the Group's products.

In the relevant year, according to information available to the Group, a number of customers located in mainland China or other regions (as the case may be) will then sell, transport or otherwise distribute products purchased by the Group in their original form or manufactured to the United States. The Group's revenue from sales of related products is still classified as revenue attributable to mainland China or other regions (as the case may be) because the Group's direct customers of such sales are located in mainland China or other regions (as the case may be).

Since its establishment in 2005, the Group has developed business in the US through Sinomax USA Inc., a wholly-owned subsidiary of the Company. Its US business includes manufacturing, sales, distribution, and customer development. The Group made an initial investment in M DK Holdings ApS (MDKH) in October 2024 and further invested in August 2025 to further expand its customer base and overseas business network. Following these investments, the Group acquired a total of 55% of MDKH's shares, and MDKH has become a subsidiary of the Company. MDKH is mainly engaged in wholesale and retail of health and sleep products in Denmark, the European Union and the United States. Furthermore, the Group completed the acquisition of intellectual property rights related to the American brand VIBE on November 25, 2025.

According to the Group's regional revenue classification, external customer revenue attributable to the US was approximately HK$1,379 billion and HK$1,551 billion in 2024 and 2025, respectively. The classification is based on the location of the relevant retail stores and consignment counters, or in the case of wholesale sales, based on the location of the relevant direct customer. These figures differ from the supplementary information on US downstream distribution contained above, and do not reflect any reclassification of revenue described in such information.

Based on the supplementary information on downstream distribution set out above, the Group's revenue attributable to the US under the 2024 and 2025 regional revenue categories together with the revenue attributable to the final products distributed to the US is approximately HK$1,677 billion and HK$1,933 billion, respectively. These figures show that in terms of revenue due to the final destination of products, the United States was the Group's largest terminal market in those two years.