STARGLORY HLDGS (08213) subsidiary intends to acquire a 51% stake in a company operating a Chinese restaurant business in Shenzhen.

STARGLORY HLDGS (08213) announced that its indirect subsidiary (potential buyer) is currently discussing the potential acquisition of a 51% stake in a company operating a Chinese restaurant business in Shenzhen, People's Republic of China (target company) with an independent third party (potential seller). It is reported that the target company is currently operating a Chinese restaurant in Nanshan District, Shenzhen, specializing in Shunde cuisine, featuring a dining hall and private rooms. Its management and culinary team has many years of experience in Chinese restaurant operations and product development, and the restaurant has been in continuous operation. The Board of Directors believes that the potential acquisition could bring the following benefits to the group: (a) Complementary experience - the potential seller has experience in restaurant operations in China, while the group possesses local restaurant operation experience in Hong Kong. The two parties can complement each other's strengths and weaknesses in store management, supply chain, and brand operations, which will help shorten the groups adaptation period in the mainland market; (b) Catering to Hong Kong tastes - the group is well aware of the tastes and dining habits of Hong Kong consumers and can collaborate with the potential seller to make corresponding adjustments to the menu, pricing, and service to cater to the trend of Hong Kong people dining in Shenzhen, thereby expanding the target company's customer base; and (c) Acquisition of an established business - acquiring a restaurant that is already operational, with an existing customer base and employee team, is quicker than searching for sites and opening a new store by oneself. It also avoids the initial losses associated with renovation and cultivation periods.