New Zealand King Salmon Investments Ltd. announced that it has entered into an exclusive distribution agreement with China Resources Food Supply Chain Co. Ltd. (CRFSC) to be the exclusive distributor to import and distribute a range of King Salmon products in Mainland China (Exclusive Distribution Agreement). Under the terms of the Exclusive Distribution Agreement, CRFSC is required to place orders totaling a minimum of 4,000kgs of salmon products per calendar month throughout the term, with pricing being on commercial rates.

If CRFSC fails to place an order for the minimum order volume for any calendar month throughout the term, NZK can either terminate the Exclusive Distribution Agreement or appoint one or more other distributors within Mainland China. In May 2023, NZK recommenced a trading relationship with CRFSC, and has sold approximately 60,000kgs of fish products to CRFSC over that time (which, on an annualized basis, would represent approximately 2.5% of the annual volume of products sold by NZK). The Board considers that CRFSC is a Related Party of NZK for the purposes as China Resources Enterprise Limited (CRE) (the 40% indirect shareholder of CRFSC) owns 9.81% of the shares in NZK and Yuen Carol Chen, Deputy General Manager of Corporate Strategy and Development at CRE, is a director of NZK.

Whilst the price and volume of the products supplied to CRFSC under the Exclusive Distribution Agreement will vary, there is potential for NZK to supply products to CRFSC with a value in excess of 10% of the Average Market Capitalization of NZK during the life of the trading relationship between CRFSC and NZK. As a result, NZK sought, and has been granted, a waiver .