Gelonghui November 21丨China Financial Holdings (00875.HK) announced that on November 16, 2023, Guangdong Congyu Agricultural Group Co., Ltd., a subsidiary of the company, transferred 49% of the shares of Guangdong Congyu Import and Export Trading Co., Ltd. (“Guangzhou Conghua Food Development”) to Guangzhou Conghua Food Development Group Co., Ltd. (“Guangzhou Conghua Food Development”).
The mixed reform will earnestly implement the spirit of the “1+3+5+N” industrial policy system document of Conghua District and the guiding ideology of the “Guangzhou Conghua District Support Measures for Promoting the Development of Trade and Service Industry” (Conghua District of Guangzhou) (Conghua District of Guangzhou) (Conghua Business Credit Code (2023) No. 5) issued by the Guangzhou Conghua District Science, Industry, Commerce and Information Technology Bureau, and take into account the Group's future development needs. The cost of the mixed reform is RMB 4,900,000 and is determined based on the relevant share percentage of shares held by Guangzhou Conghua Grain Development in the registered share capital of Guangdong Conghua Food Development and the import and export of Guangdong Congyu. After the mixed reform, the registered share capital of Guangdong Congyu Import and Export was held by the Group and Guangzhou Conghua Grain Development respectively by 51% and 49%.
Guangzhou Conghua Food developed into a state-owned enterprise established in China, wholly owned by the State-owned Assets Supervision Administration of the Conghua District Government of Guangzhou, China. According to the directors' full knowledge, knowledge and conviction after making all reasonable inquiries, before the mixed reform, Guangzhou Conghua Food Development and its ultimate beneficial owners were all third parties independent of the Company and its associated persons (as defined in the Hong Kong Stock Exchange Limited's stock listing rules (“Listing Rules”)).
The company's business strategy is to explore potential business and investment opportunities from time to time to enhance the value of the company's shares. Guangzhou Conghua Food Development is mainly engaged in food and agricultural product processing, food, food (pre-packaged food only), feed ingredients, raw nuts and dried fruit sales. The mixed reform enabled the Group to cooperate with state-owned enterprises, broaden the Group's sales channels and enrich the range of products in the Group's agricultural and meat business, enhance the Group's profitability and bring more impressive returns to shareholders.
The annual sales volume of Guangdong's jade imports and exports for the year ending December 31, 2023 is expected to be around RMB 6 billion. The board of directors believes that Guangzhou Conghua Food Development's participation in mixed reform will send a positive signal to external investors that Guangzhou Conghua Food Development is optimistic about the Group's prospects, and will enhance the confidence of external investors in the future development of the Group. The directors (including independent non-executive directors) believe that the mixed reform is carried out in the daily and general business processes of the company. The terms of the mixed reform are fair and reasonable, are based on general commercial terms, and are in line with the overall interests of the company and shareholders.