JIN MI FANG GP plans to acquire a total of 52% equity in Guizhou Yijinze Liquor Industry

According to the Zhitong Finance APP, JIN MI FANG GP (08300) announced that the group has recently entered into a share transfer agreement to acquire a total of 52% equity in Guizhou Yijinze Liquor Co., Ltd. (target company) through its wholly-owned subsidiary, Futu Asia Investment Co., Ltd. (Futu Asia) (acquisition matter). The target company is a limited liability company established in 2025 in Zunyi City, Guizhou Province, China, with a business scope that includes liquor business operations and liquor product manufacturing.

Before the completion of the acquisition matter, the target company is held by three individuals with 70%, 24%, and 6% equity, respectively. The group, through Futu Asia, will acquire a total of 52% equity from these individuals, paying a total nominal price of RMB 1 to each seller.

Upon completion of the acquisition matter, the target company will be 52% owned by Futu Asia, with two individuals holding 33.6% and 14.4% equity, respectively. Except for the individual holding 14.4% of the target company’s shares after the completion of the acquisition matter (who is also a shareholder (holding 6% equity) and supervisor of the group’s non-wholly-owned subsidiary Xishuangbanna Menghai Longputian Tea Co., Ltd.), all former and current shareholders of the target company are independent third parties.

The acquisition matter aligns with the group’s strategic initiatives to develop liquor supply-related businesses in China. The board believes that the advantages the target company can provide include a clear operational platform that helps implement the group’s systems, monitoring, and brand strategies; and flexibility that aligns with the product portfolio, pricing, and sales channels in the group’s existing and future development plans.

With the target company’s authorized portfolio and its integration process with the group, as well as depending on the market conditions of the liquor industry, the acquisition matter can support the group in consolidating its strategic goal of becoming a well-known liquor supplier in China by promoting the development of a broader customer base, production planning, and distribution arrangements. Over time, this move may further enhance the operational efficiency of the group’s liquor business.

Based on the above, the company believes that the acquisition matter is in the overall interest of the company and its shareholders. The group will continue to focus on its core business of providing catering and related services, and the acquisition matter is part of its strategy to strengthen its main business of supplying liquor in China