JIN MI FANG GP plans to acquire a 52% stake in Xishuangbanna Menghai Longputian Tea Industry
JIN MI FANG GP plans to acquire 52% equity of Xishuangbanna Menghai Longputian Tea Industry for RMB 1 through its wholly-owned subsidiary Fulton Asia. The target company was established in 2018 and focuses on the wholesale and retail of tea and food. After the acquisition, the target company will become a non-wholly-owned subsidiary, and its financial performance will be included in the group's financial statements. This move aims to enhance the tea business, ensure the supply of raw materials and product quality, quickly enter new markets, promote online sales, and improve sales growth and product diversification
According to the Zhitong Finance APP, JIN MI FANG GP (08300) announced that the group has recently entered into an equity transfer agreement to acquire a total of 52% equity in Xishuangbanna Menghai Longputian Tea Industry Co., Ltd. (target company) through its wholly-owned subsidiary Fulton Asia Investment Limited (Fulton Asia) at a nominal total price of RMB 1.
The target company is a limited liability company established in 2018 in Xishuangbanna, Yunnan Province, China. Its business scope includes wholesale and retail of tea, pre-packaged food, and bulk food (excluding refrigerated and frozen food); as well as tea planting, procurement, primary processing, refinement, and sales.
Upon completion of the acquisition, the target company will become a non-wholly-owned subsidiary of the company, and its financial performance will be consolidated into the company's consolidated financial statements.
The acquisition aligns with the group's strategic initiatives to develop its tea business sales and marketing. The target company has approximately seven years of experience in tea production and sales in China, with a business scope that includes beverage production; food production; food sales; production of plastic packaging, containers, and tools for food; and online food sales (limited to pre-packaged food); and online sales (excluding the sale of goods requiring specific licenses). After the acquisition, the target company will primarily develop products such as black tea, white tea, and raw and ripe Pu-erh tea produced from ancient tea trees that are hundreds or even thousands of years old. These products are characterized by their long shelf life, with the value increasing the longer they are preserved.
The acquisition is expected to enable the group to control the tea production process and ensure a stable supply of raw materials and product quality. At the same time, the acquisition allows the group to fully utilize the target company's channels and market resources, quickly enter new markets, expand the sales network, and improve the overall corporate strategic layout of the group. Through the acquisition of the target company, the group can enter the tea market at a lower cost and save on initial investments while developing sales in domestic and international markets. Additionally, the group can leverage its existing online platform sales channels to promote online sales, develop its own tea brand, and utilize the target company's existing quality control management system to create high-quality tea products. Therefore, the acquisition is expected to bring significant benefits to the group's sales growth, platform sales development, and product diversification
