Prosperousprint (08385) announced that on October 30, 2024, Yellow River (an indirectly wholly-owned subsidiary of the Company) and the joint venture partner entered into a joint venture agreement, agreeing that the registered capital of Yucai Printing Services (Huizhou) is set at RMB 5 million, with Yellow River owning 28% and the joint venture partner owning 72% of the joint venture company.

As of the date of this announcement, the Huizhou factory is undergoing renovation, while the joint venture partner has closed the Longhua factory and plans to transfer its employees and equipment to the Huizhou factory after the renovation is completed. The Huizhou factory is expected to start operation by the end of 2024. As of the date of this announcement, the joint venture company has entered into a lease agreement for the Huizhou factory, with a lease term from November 15, 2024, to November 14, 2034. The area of the Huizhou factory is approximately 9,640 square meters, located at Building 5, Floors 1, 2, 3, and Building 7, Floor 4, Ruiqiao Road, Longbu Village, Xinwei Town, Huiyang District, Huizhou City, Guangdong Province, China.

The Group has closed its Shenzhen factory and plans to outsource printing orders to the Huizhou factory. The Group was established in Hong Kong in 1992 and has a long history in the printing industry. It is committed to acquiring orders from overseas customers by adhering to international standards, strong and stable project management skills, among other competitive advantages. These orders can be taken by the Huizhou factory and outsourced to it to generate profits. The company believes that this will significantly reduce its fixed recurring costs to improve its cash flow.