Zhitong Financial APP News, Silk Road Energy (08250) announced that after the 51% stake in Zhongtai Hongzhi Technology (Shenzhen) Co., Ltd. was completed in December 2021, the group has begun to carry out imported fruit business through Zhongtai Hongzhi.

The announcement said that while the Group is committed to expanding the market for imported fruits, it has found that there is a growing demand for high-quality fresh and agricultural products in China, and the lack of reliable intermediary companies to transport high-quality fresh food from farms to major cities in China also brings corresponding opportunities.

In order to open up the fresh agricultural product market and seize the market opportunity, the company established an indirect wholly-owned subsidiary Dudu Xianmei Industrial (Shenzhen) Co., Ltd. in China in February 2022 with a registered capital of RMB 5 million to develop pig trade business in China.

Dudu's business involves, among other things, purchasing high-quality live pigs from well-known suppliers and pig farms in Guangxi, Jiangxi and Hunan and selling them to cities such as Shenzhen, Huizhou and Dongguan in Guangdong Province. Since its opening in March 2022, du Xianmei has completed a number of orders for live pigs.

The Directors are of the view that the increase in purchasing power and the improvement in living standards in China are expected to increase the demand for imported fruits and quality agricultural products from well-known farms in China, and are therefore optimistic about the delicious business prospects of Sino-Thai Hongzhi and du. The Directors are also confident that fresh Trading, a new major business segment, will contribute to the diversification of the Group's business, generate more revenue and enhance the Group's profit margins in the long run.