Zhitong Financial App News, China Agricultural products Trading (00149), Hongan Group (01222) and Weiyuantang (00897) jointly announced the contractual arrangements entered into in response to the ownership restrictions of applicable laws and regulations in China, mainly to promote the operation of the e-commerce platform of China Agricultural products Group.
Taking into account the current operating scale of the e-commerce platform of China Agricultural products Group, its recent contribution to the profit and profit of China Agricultural products Group and its development prospects, the respective boards of directors of China Agricultural products, Diyuantang and Hongan Group are of the view that the resources of China Agricultural products Group can be better dispatched to support the sustainable development of its internal IT infrastructure.
Under the exclusive subscription right agreement entered into between Shenzhen Zhibo, Shenzhen Guteng and the nominee shareholders (who are directors of certain subsidiaries of China Agricultural products), Shenzhen Zhibo is granted an exclusive right (the subscription right), which can be exercised at its sole discretion at any time, to acquire the entire equity interest in Shenzhen Gudeng from the nominee shareholders for a nominal consideration of RMB100 or the minimum amount allowed by applicable PRC law, whichever is the higher.
On December 10, 2021, Shenzhen Zhibo, an indirect wholly-owned subsidiary of China Agricultural products, exercised the subscription right to enter into an equity transfer agreement with the nominee shareholders to acquire the entire equity interest in Shenzhen Gudeng for a consideration of RMB100. After the completion of the transfer of all the shares in Shenzhen Gudeng, the online agricultural trading e-commerce platform of China Agricultural products Group, which is based on the contractual arrangement, will also be out of operation. The contractual arrangement will be terminated upon completion of the assignment. China's agricultural products will also continue to explore and consider other suitable e-commerce opportunities as part of the business development of China Agricultural products Group.