REACH NEW HLDGS (08471) announced that on December 18, 2025, its indirect wholly-owned subsidiary, Shenzhen Reach Functional Textile Co., Ltd., has agreed to acquire a 24% equity stake in Hengda Yongjin Agricultural High-Tech Co., Ltd. from Tianjin Zhonghe Seed Co., Ltd. for a total consideration of RMB11.6 million.

Post-acquisition, the buyer will hold a 24% stake in the target company, while the seller will retain the remaining 76%. The target company is engaged in the trade of crop seeds (limited to pre-packaged seeds not for resale), cultivation of food crops, and production of non-staple crop seeds. According to the board's knowledge and belief, the target company owns a functional apparel production facility.

The board believes the acquisition will not only diversify the group's business but also create critical strategic synergies. It is expected to enhance the competitiveness, sustainability, and resilience of the group's core textile operations—particularly in the R&D and production of functional apparel—thereby supporting sustainable long-term growth.

The purchase of a 24% stake aligns with the group's available financial resources, balancing operational cash flow needs while securing partial control over the target company's production facilities to advance its functional apparel business.