Common use of REASONS FOR THE TRANSACTIONS Clause in Contracts

REASONS FOR THE TRANSACTIONS. The Group is the business arm of the San Xxxxxx Group responsible for the production and/or distribution of bottled, canned and draught beers and other beverage products mainly in Hong Kong, Macau and China. Most of the products of the Group are marketed under various brand names owned by various members of the San Xxxxxx Group, including those under the Neptunia Sub-licence Agreement. The “San Xxxxxx” and “Sun Lik” brand names are essential to the Group’s sales. Members of the San Xxxxxx Group are also selling their products in other parts of the world using, among others, the “San Xxxxxx” brand name. The Group has obtained the right to use these brand names owned by the San Xxxxxx Group through various licensing arrangements, including but not limited to, the Neptunia Sub-licence Agreement since 1979 as extended from time to time at substantially the same terms. As disclosed above, the Extension Letter was entered into by the Company and Neptunia for the purpose of extending the term of the Neptunia Sub-licence Agreement and allowing the Group to continue the use of the relevant trademarks to distribute and sell its beer products in the relevant territories as specified in the Neptunia Sub-licence Agreement. The Directors (including the independent non-executive Directors) consider the terms of the Neptunia Sub-licence Agreement (as extended by the Extension Letter) are fair and reasonable, and on normal commercial terms and that the transactions thereunder are in the ordinary and usual course of business of the Company and in the interests of the Company and the shareholders of the Company as a whole.

REASONS FOR THE TRANSACTIONS. The Group is the business arm of the San Xxxxxx Group responsible for the production and/or distribution of bottled, canned and draught beers and other beverage products mainly in Hong Kong, Macau and China. Most of the products of the Group are marketed under various brand names owned by various members of the San Xxxxxx Group, including those under the Neptunia Sub-licence Agreement. The “San Xxxxxx” and “Sun Lik” brand names are essential to the Group’s sales. Members of the San Xxxxxx Group are also selling their products in other parts of the world using, among others, the “San Xxxxxx” brand name. The Group has obtained the right to use these brand names owned by the San Xxxxxx Group through various licensing arrangements, including but not limited to, the Neptunia Sub-licence Agreement since 1979 as extended from time to time at substantially substantiality the same terms. As disclosed above, the Extension Letter was entered into by the Company and Neptunia for the purpose of extending the term of the Neptunia Sub-licence Agreement and allowing the Group to continue the use of the relevant trademarks to distribute and sell its beer products in the relevant territories as specified in the Neptunia Sub-licence Agreement. The Directors (including the independent non-executive Directors) consider the terms of the Neptunia Sub-licence Agreement (as extended by the Extension Letter) are fair and reasonable, and on normal commercial terms and that the transactions thereunder are in the ordinary and usual course of business of the Company and in the interests of the Company and the shareholders of the Company as a whole.