Summary by Futu AI
Asia Fruit Industries (Asia Fruit Holdings Limited) announced on February 14, 2024 that its wholly-owned subsidiary Cheer Kind entered into a joint venture agreement with Hangzhou Lexbook Digital Technology Co., Ltd., agreeing to form a joint venture. The joint venture will provide supply chain financial technology solutions in China. Under the agreement, Cheer Kind will invest RMB10,200,000 and partners will contribute RMB9,800,000. After the formation of the joint venture, Cheer Kind will have a 51% interest, and the partner will have a 49% interest. THE JOINT VENTURE EXPECTS TO BECOME AN INDIRECT NON-WHOLLY OWNED SUBSIDIARY OF THE ASIAN FRUIT BUSINESS AND TO INCLUDE ITS FINANCIAL RESULTS IN THE GROUP'S CONSOLIDATED FINANCIAL STATEMENTS. THE SIGNING OF THIS JOINT VENTURE CONSTITUTES A DISCLOSEABLE TRANSACTION AND IS SUBJECT TO THE DECLARATION AND ANNOUNCEMENT REQUIREMENTS OF CHAPTER 14 OF THE LISTING RULES. Asia Fruit said the move was aimed at diversifying its business portfolio and expanding its share in the Chinese market, and believes that the partners' IT experience will help the Group grow its business in China.
