GUANGNAN (HOLD) (01203): Yuehai Foods in Foshan Signs Cooperation Agreement with Dream Water Town.

GUANGNAN (HOLD) (01203) announced that on December 27, 2024, Yuehai Food Foshan and Dream Water Town signed a cooperation agreement to establish a modern and high-standard slaughter enterprise in Lishui Town, Nanhai District, Foshan, China. The project company has a registered capital of RMB 90 million, with Yuehai Food Foshan contributing 65% and Dream Water Town contributing 35%. In the first half of 2022, the group's self-built slaughterhouse in Nanhai District, Foshan, began operations. The slaughterhouse has been operated by Yuehai Food Foshan, achieving significant benefits in establishing and improving slaughter processing production lines and technologies. By establishing the project company based on the cooperation agreement, the group expects to further expand its operations in the Guangdong-Hong Kong-Macao Greater Bay Area. The project company is located at the border of Guangzhou and Foshan, Guangdong Province, in the heart of the Greater Bay Area, with excellent geographical location, business environment, and vast market opportunities. It is expected that this strategic move will optimize the quality of resource allocation for the group, leverage shared resources in the Bay Area, achieve synergies in slaughter business scale, and enhance overall operational efficiency. Given Dream Water Town's local resources and professional knowledge, the company believes it is a suitable partner for establishing the project company. Therefore, the company believes the project company (which will become a subsidiary of the company after establishment, and its financial data will be consolidated into the group's financial statements) will expand the group's food and biological business, providing opportunities for the group to further increase its market share and influence in the Guangdong-Hong Kong-Macao Greater Bay Area, and create maximum value for shareholders.