Hongan Group (01222.HK), together with its listed subsidiaries 00897.HK and China Agricultural products Trading (00149.HK), jointly announced that the removal and termination of the Chinese e-commerce platform that provides agricultural products online to China Agricultural products Group will be in the overall interests of China Agricultural products, Bitang and Hongan Group and their respective shareholders.
Yesterday (20th), Shenzhen Zhibo, a wholly-owned subsidiary of China Agricultural products, exercised the subscription right to acquire all shares in Shenzhen Gudeng at a nominal consideration of 100 yuan. 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.
The Group said that taking into account the current operating scale of the China Agricultural products Group's e-commerce platform, its recent contribution to the income and profits of the China Agricultural products Group and its development prospects, the respective boards of Directors of China Agricultural products, Bitang and Hongan Group are of the view that the resources of the China Agricultural products Group can be better dispatched to support the sustainable development of its internal information technology infrastructure.