KUALA LUMPUR (July 13): Wellspire Holdings Bhd’s unit Wellspire Global Trading Sdn Bhd has entered into an export agency agreement with China-based entity Cundo Food Co, Ltd to be the exclusive distributor of Cundo products in Malaysia, Singapore and Thailand.

According to its bourse filing on Thursday (July 13), the agreement will last for a period of three years from July 13, 2023 to July 12, 2026.

As per the agreement, products distributed will include Cundo's chocolate coating cake products, as well as three flavours of Cundo Cake (chocolate, milk and strawberry-raspberry).

Wellspire shared that the agreement is expected to contribute positively to its earnings per share and net assets per share for the duration of the agreement.

Earlier in March this year, one of Wellspire’s 75.01%-owned unit, Bai Li Enterprise Co Ltd, entered into a distribution agreement with HH International Enterprise Ltd to distribute snack products in Thailand while renewing its distributor supplementary agreement in Thailand with QiaQia Food Co, Ltd in February.

Wellspire was listed on the ACE Market on January 16, 2023 with an opening price of 33 sen and closing at 43 sen, an 86.96% increase from its initial public offering (IPO) price of 23 sen.

From the group’s financial statements, it reported a net profit of RM900,000 on the back of a revenue of RM34.05 million for the first quarter ended March 31, 2023 (1QFY2023).

As the counter closed, Wellspire’s shares were up one sen or 1.25% at 81 sen, translating into a market capitalisation of RM576.8 million.