Gelonghui, Feb. 14, 丨 Asia Fruit Industry (00073.HK) announced that on February 14, 2024, Cheer Kind, a wholly-owned subsidiary of the company, entered into a joint venture agreement with its joint venture partner Hangzhou Leshu Digital Technology Co., Ltd. Based on this, the contracting parties agreed to establish a joint venture.
According to the joint venture agreement, Cheer Kind and the joint venture partner will invest in cash within 24 months after the establishment of the joint venture company or an extension period as may be agreed by the contracting parties, according to their respective share of the joint venture's registered capital, that is, Cheer Kind will contribute RMB 10,200,000 and the joint venture partner RMB 9,800,000.
The joint venture's business scope will cover the provision of supply chain financial technology solutions in China.
The Group is committed to diversifying its business portfolio and expanding its market share in China. The joint venture will provide supply chain finance technology solutions in China, bring long-term growth prospects to the Group, and help the Group enter the Chinese technology solutions industry. The Board believes that Ms. Kwan's experience, business network and expertise in the IT industry in China will help the Group expand this business area in China. The Board believes that the establishment of a joint venture will expand the Group's revenue base over time and bring long-term growth to the company and shareholders.