JIN MI FANG GP (08300) announced that the Group has recently entered into a share transfer agreement to acquire a 52% stake in Guizhou Yijinze Liquor Industry Co., Ltd. (the "Target Company") through its wholly-owned subsidiary, Fortis Asia Investment Limited ("Fortis Asia").

The Target Company, established in 2025 in Zunyi City, Guizhou Province, China, is engaged in liquor business operations and alcoholic beverage production. Prior to the acquisition, the Target Company was held by three individuals with shareholdings of 70%, 24%, and 6%, respectively. The Group, via Fortis Asia, acquired a combined 52% stake from these sellers for a nominal consideration of RMB 1 in total.

Upon completion of the acquisition, Fortis Asia will hold a 52% stake in the Target Company, while the remaining shares will be held by two individuals at 33.6% and 14.4%, respectively. Except for the individual retaining a 14.4% stake (who is also a shareholder (6%) and supervisor of the Group’s non-wholly owned subsidiary, Xishuangbanna Menghai Longpu Tianxia Tea Industry Co., Ltd.), all former and current shareholders of the Target Company are independent third parties.

The acquisition aligns with the Group’s strategic initiative to expand its liquor supply business in China. The Board believes the Target Company offers advantages, including a clear operational platform to implement the Group’s systems, controls, and branding strategies, as well as flexibility to complement the Group’s existing and future product portfolio, pricing, and sales channels.

Leveraging the Target Company’s licensing portfolio and integration with the Group, and depending on market conditions in the liquor industry, the acquisition may support the Group’s strategic goal of consolidating its position as a leading liquor supplier in China by broadening its customer base, production planning, and distribution arrangements. Over time, this could enhance operational efficiency in the Group’s liquor business.

Given these considerations, the Company believes the acquisition serves the overall interests of the Company and its shareholders. The Group will continue focusing on its core business of providing catering and related services, while the acquisition forms part of its strategy to strengthen its liquor supply operations in China.