ZHONGSHI MINAN (08283) intends to acquire 100% equity of Henan Kaiyuan Food Co., Ltd. with a proposed amount of 20 million yuan.

ZHONGSHI MINAN (08283) announced that on September 19, 2024, the company's indirectly wholly-owned subsidiary, Beijing Zhenglichangsheng Technology Co., Ltd., intends to acquire 100% equity of Henan Kaiyuan Food Co., Ltd. from Liu Yang and Liu Qinghao, for a total consideration of RMB 20 million, to be paid in cash and through the issuance of approximately 383 million consideration shares (to be credited as fully paid), at an issue price of HK$0.057 per share. It is reported that the target company is mainly engaged in gosling hatching, as well as goose breeding, slaughter, processing, and sales. The target company currently holds valid pollution discharge permits and animal epidemic prevention qualification certificates. The Board believes that the acquisition can provide various strategic advantages, creating synergies with the Group's smart kitchen appliance business, as well as allowing the target company to expand its existing goose farming scale and strengthen its poultry slaughter and processing production lines. Furthermore, it is expected that the acquisition will enable the target company to increase sales by leveraging the Group's well-known brand in the Chinese market.