The Silk Road Energy (08250.HK) announced that on November 23, 2021, Dahuicheng, an indirect wholly-owned subsidiary of the company, andXie Bangkun(as buyer) enter into an equity transfer agreement with the seller (as seller), accordingly, Da Huicheng andXie BangkunHas agreed to acquire the target company separately from the seller in accordance with the terms of the equity transfer agreement.Zhongtai Hongzhi Technology (Shenzhen) Co., Ltd.51% and 49%. Upon completion of the equity transfer, da Huicheng andXie BangkunWill own 51% and 49% of the target company, respectively.
On November 23, 2021,, Dahuicheng andXie BangkunEnter into a co-operation agreement to regulate tat wai shing andXie BangkunManagement and operation of the target company.
According to the announcement, the Group has been actively seeking new business opportunities to expand its revenue sources and achieve long-term development. Considering different business areas, the company decided to diversify its business and enter the fruit trade and import market by acquiring a 51% stake in the target company, which mainly does fruit import business in China.
The directors believe that the equity transfer is a good business opportunity because the target company has the necessary import license granted by the Chinese department,Xie BangkunRich experience in fruit trade and import, China's growing demand for imported fruits and target companiesXie BangkunThe resources and experience have good business prospects. Upon completion of the equity transfer, the Target Company will become a subsidiary of the Company and the Group will be able to develop its fruit import business into a new major business segment of the Group, which the Directors believe will generate more revenue and increase the Group's long-term interest rates.