Reach New Holdings Limited (8471) released a supplemental announcement regarding its acquisition of a 24% equity interest in a target company that owns a plot of land measuring 40,230.1 square meters in Nanyang City. The target company also holds production plants totaling 9,245.16 square meters, which the group aims to use for manufacturing functional garments.

According to the announcement, the transaction grants Reach New Holdings Limited the non-expiring first right to lease and use the production facility, supporting the group’s long-term plan of establishing a vertically integrated supply chain. The company notes that it opted to acquire only 24% due to current financial constraints, but there is a possibility of further increasing its stake in the future.

The target company’s net asset value as of 31 December 2024 was approximately RMB36.4 million. A valuation conducted as of 30 November 2025 placed the total equity value at about RMB48.4 million, primarily due to revaluation of the land and buildings. Under the asset-based approach adopted by an independent valuer, the land’s appraised value is around RMB20.5 million, while the buildings are valued at about RMB24.8 million.