According to Zhitong Finance APP, CH AGRI-PROD EX (00149) and WANG ON GROUP (01222) jointly announced that on December 13, 2024, an indirect wholly-owned subsidiary of WANG ON GROUP (01222) intends to sell all the issued share capital and shareholder loans of the target company, Regal Smart Investment Limited, to the indirect wholly-owned subsidiary of CH AGRI-PROD EX (00149) for a price of 0.15 billion Hong Kong dollars.

It is reported that the main asset of the target company is a 50% equity stake in the China joint venture Shenzhen Agricultural Markets Co., Ltd. The China joint venture mainly engages in the management of the China wet goods market and sub-leasing to tenants within the target property. The China joint venture owns properties, which include a total of 11 agricultural product markets located in Shenzhen, Guangdong Province, China, with a total built-up area of about 15,463 square meters. Several units of the owned properties are currently leased out to generate rental income.

The China joint venture is a recognized operator of wet markets in Shenzhen, operating a total of 16 agricultural product markets under the brand 'Huimin Market' in Shenzhen.

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.