HATCHER GROUP (08365) plans to issue HKD 10,000,000 worth of shares to acquire a 51% stake in Hengrui Group Limited.

HATCHER GROUP (08365) announced that on July 16, 2026, the company entered into an agreement with the seller, Dr. Deng Yunkai, and guarantor Ms. Deng Yiting, regarding the acquisition. According to the agreement, the company has conditionally agreed to acquire, and the seller has conditionally agreed to sell 51% of the shares (equivalent to the equity of the target company Hengrui Group Limited) for HK$10 million. The consideration will be paid in the form of 10 million shares at HK$1 per share, and the guarantor has agreed to provide guarantee for the seller's obligations under the agreement. Upon completion, the company will have a stake in 51% of the target company's equity, making the target company a direct non-wholly owned subsidiary of the company, and the financial performance of the target company will be consolidated into the group's accounts. The issuance of 10 million new consideration shares represents approximately 5.03% of the company's issued share capital as of the date of this announcement, and approximately 4.79% after the issuance of additional shares. The company has been actively seeking development opportunities to diversify its business operations and revenue sources. The directors believe that the acquisition provides an opportunity for the group to expand into various consulting services, including immigration, overseas education, trust, and overseas investment advisory services. The board of directors believes that the acquisition will create significant synergies with the group's existing business operations, as the group's clientele includes high net-worth individuals and families, who are also the target company's main customers. By integrating the target company's expertise in overseas immigration, education, trust, and investment advisory services in key overseas jurisdictions, the group will be able to provide a wider range of services to its existing client base, potentially creating cross-selling opportunities. Similarly, the target company's client base may drive additional demand for the group's financial and advisory services, further expanding the group's revenue base.