JIN MI FANG GP (08300) plans to acquire a total of 52% equity stake in Guizhou Yijinze Liquor Industry.

JIN MI FANG GP (08300) announces that the group has recently entered into a share transfer agreement to acquire a total of 52% equity stake in Guizhou Yijinze Wine Co., Ltd. (the target company) through its wholly-owned subsidiary FUTONG ASIA INVESTMENT LIMITED (Futong Asia). The target company is a limited liability company established in Zunyi City, Guizhou Province, China in 2025, with business scope including the operation of wine business and the production of wine products. Prior to the completion of the acquisition, the target company was owned by three individuals holding 70%, 24%, and 6% equity respectively. The group acquired a total of 52% stake from these individuals through Futong Asia, with a total nominal consideration of 1 Yuan. Upon completion of the acquisition, Futong Asia will hold 52% stake in the target company, while two individuals will hold 33.6% and 14.4% equity respectively. Apart from the individual holding 14.4% stake in the target company after the completion of the acquisition (who is also a shareholder with 6% stake and supervisor of the group's non-wholly owned subsidiary Xi Shuangbanna Menghai Longputianxiache Co., Ltd.), all former and current shareholders of the target company are independent third parties. The acquisition aligns with the group's strategic initiatives in developing wine supply related businesses in China. The Board believes that the target company offers advantages such as a clear operating platform that will help implement the group's systems, controls, and brand strategies, as well as flexibility to align with the group's existing and future product mix, pricing, and sales channels. Through the integration process with the target company's portfolio and depending on market conditions in the wine industry, the acquisition is expected to facilitate the group's development of a wider customer base, production planning, and distribution arrangements, supporting the group's strategic goal to consolidate its position as a renowned wine supplier in China. Over time, this may also enhance the operational efficiency of the group's wine business. In light of the above, the company believes that the acquisition is in the overall interest of the company and shareholders. The group will continue to focus on its core business of providing catering and related services, with the acquisition being part of its strategy to strengthen its main business of supplying wine in China.