DYNASTY WINES (00828) plans to establish a joint venture in Guizhou to buy and sell sauce-flavored white wine products nationwide.

DYNASTY WINES (00828) announced that on December 20, 2024, the company's wholly-owned subsidiary, Dynasty Winemaking, and Guowei Company have signed a joint venture cooperation agreement to establish a joint venture company in Renhuai City, Guizhou Province, China, for the trading of sauce-flavored white wine products nationwide. According to the joint venture cooperation agreement, the total registered capital will be RMB 10 million, with 51.0% (RMB 5.1 million) contributed by Dynasty Winemaking and the remaining 49.0% (RMB 4.9 million) contributed by Guowei Company. Within nine months of the establishment of the joint venture company, Dynasty Winemaking shall encourage the acquisition of third-party call option rights (i.e. the joint venture company's 39% equity held by Guowei Company). If unsuccessful, Dynasty Winemaking shall purchase the equity (i.e. put option) itself. After exercising the put option, Dynasty Winemaking will hold 90% equity of the joint venture company and Guowei Company will hold 10% equity. Guowei Company is a large white wine enterprise located in Renhuai, Guizhou Province, China, which will provide steady supply of sauce-flavored white wine products to Dynasty Wines. In terms of procurement, Guowei Company has a large base in Renhuai, with an annual production of over 8,000 tons of high-quality Daqu sauce-flavored white wine, which will benefit the group in selling Dynasty white wine. Furthermore, establishing the joint venture company can leverage the respective professional strengths of the group and Guowei Company. This move will promote the further development of the group's new alcoholic beverages, diversify the group's sources of income, enhance its business scale, and increase the influence of the "Dynasty" brand.