On December 13, Glorious Group announced that CH AGRI-PROD EX (00149.HK) entered into a sale and purchase agreement on December 13, 2024, with the seller (an indirectly wholly-owned subsidiary of WANG ON GROUP), WANG ON (as the seller's guarantor), the buyer (an indirectly wholly-owned subsidiary of CH AGRI-PROD EX), and CH AGRI-PROD EX (as the buyer's guarantor), whereby: (i) the seller conditionally agrees to sell and the buyer conditionally agrees to purchase all the shares of the target company Regal Smart Investment Limited; (ii) the seller conditionally agrees to sell and transfer shareholder loans, and the buyer conditionally agrees to purchase and accept shareholder loans, at a cost of 0.15 billion Hong Kong dollars; and (iii) WANG ON and CH AGRI-PROD EX have agreed to provide guarantees for the seller and buyer's responsibilities under the sale and purchase agreement respectively.

The target company is a limited company incorporated in Hong Kong, primarily engaged in investment holding business. As of the date of this joint announcement, the target company has no subsidiaries, and its main asset is a 50% equity stake in a joint venture in China.

The joint venture is a limited company established in China, mainly engaged in the management of the Chinese perishable goods market within the target property and subleasing to tenants. As of the date of this joint announcement, the joint venture is owned 50% by the target company and is ultimately owned 50% by Shenzhen Agricultural Products Group (a company listed on the Shenzhen Stock Exchange with stock code 000061.SZ).

The joint venture owns properties that include a total of 11 agricultural products markets located in Shenzhen, Guangdong Province, China, with a total construction area of approximately 15,463 square meters. Several units of the owned properties are currently leased to generate rental income.

CH Agricultural Group has been seeking opportunities to expand its wet market and trade business in China, to maximize shareholder interests and enhance the investment value of the CH Agricultural Group. The transaction represents a valuable opportunity for CH Agricultural Group to expand its business footprint in Shenzhen and aligns with the overall business direction of CH Agricultural Group. The transaction is expected to generate synergies between the Shenzhen agricultural market and CH Agricultural Products in the existing agricultural market in China, further consolidating the existing business of CH Agricultural Group and broadening its revenue base.

WANG ON GROUP regularly reviews its business portfolio and seeks to optimize and restructure it to strengthen the long-term development of its core business, thereby providing maximum returns to shareholders and enhancing the investment value of WANG ON GROUP. The transaction will allow WANG ON to organize the operations of the Chinese perishable goods market through its listed subsidiary CH AGRI-PROD EX, thereby streamlining its business.