REACH NEW HLDGS (08471) plans to acquire 24% equity of Hengda Yongjin Agricultural High-tech Co., Ltd. for a total of 11.6 million.

REACH NEW HLDGS (08471) announced on December 18, 2025 that its indirect wholly-owned subsidiary, Shenzhen Xinda Functional Textile Co., Ltd., plans to acquire 24% equity of Hengda Yongjin Agriculture High-tech Co., Ltd. from Tianjin Zhonghe Seed Industry Co., Ltd. for a total consideration of RMB 11.6 million. Following the acquisition, the target company will be held by the buyer with a 24% stake, while the remaining 76% stake will continue to be held by the seller. The target company is engaged in the trade of agricultural crop seeds (limited to non-resale pre-packaged seeds), cultivation of cereal crops, and production of non-staple crop seeds. According to the directors' knowledge and belief, the target company owns a functional clothing production factory. The board believes that the acquisition will not only diversify the group's business but also create key strategic synergies, expecting to enhance the competitiveness, sustainability, and resilience of its core textile businessespecially in the area of research and development of functional clothing, thereby supporting the group's sustainable and long-term development and growth. The acquisition of 24% equity in the target company has taken into account the group's current available financial resources, which will help balance the cash flow needs of the group's operations and facilitate the long-term development of the group's functional clothing business by gaining partial control of the target company's production facilities.