Hope Life International (HKG:1683) signed a memorandum of understanding with vendor Wang Chaojie for the possible acquisition of a 51% stake in Henan Jiucai Supply Chain Management, according to a Tuesday Hong Kong bourse filing.

Shares of the firm were down over 1% in Wednesday morning trade.

Hope Life said the proposed deal would mark an expansion into the agricultural supply chain sector.

Terms, including valuation and payment methods, will be set out in a definitive agreement expected within three months, according to the filing.

Henan Jiucai, established in 2023, focuses on fresh produce supply chain management using blockchain and AI technologies.

Hope Life said the potential acquisition would diversify income sources and strengthen its revenue base, though the deal remains subject to further negotiations and due diligence.