China Wantian Holdings Limited (“China Wantian Holdings”; together with its subsidiaries, the “Group”; stock code: 01854.HK) is pleased to announce that Great Point Limited (“Great Point”), the Group’s direct wholly-owned subsidiary, has completed acquisition of Champion Point Limited (“Champion Point”)’s subsidiary Shenzhen Wealth Source Trading Development Company Limited* (“Shenzhen Wealth Source”, together with Champion Point, the “Target Group”), which is a domestic fresh food supply chain service provider in the PRC. It marks the Group’s expansion of its fresh food ingredient business into the Guangdong-Hong Kong-Macao Greater Bay Area (the “Greater Bay Area”) market. Upon the acquisition completion, the Target Group has become wholly-owned subsidiaries of the Group.
The Target Group which the Group has acquired is principally engaged in the trading of live cattle, fruits, vegetables, seafoods and food ingredients in the PRC. Shenzhen Wealth Source is the operating subsidiary of the Target Group. It sources live cattle from Inner Mongolia and distributes them to slaughterhouses in the Greater Bay Area. It also supplies and offers fruits, vegetables and seafood to restaurants in the Greater Bay Area. Acquiring Champion Point with well-established business network and customer base in the PRC will allow the Group to offer comprehensive service packages to the customers and broaden customer base. Taking into account the adverse impact brought about by the outbreak of COVID-19 on the catering and corresponding food processing industries in Hong Kong, the Group’s management believes that the Group can remain competitive by venturing into new markets and diversifying its business development strategies, thus generating higher revenues for investors and shareholders.
Apart from acquiring the Target Group, the Group also strategically added two restaurants in Zhongshan’s busy city centre, in China’s Guangdong Province. The two restaurants are SteamGood, a steamed seafood eatery that specialises in the freshest ingredients, and Kong Xiang Coffee*, a coffee shop that combines nature with space, further expanding its restaurant network in the Greater Bay Area and enhancing the food supply and catering chain businesses. SteamGood and Kong Xiang Coffee cater mainly to young consumers, incorporating trendy concepts such as personalisation, an immersive experience and a check-in for younger-generation diners seeking a high quality of life and healthy food. SteamGood boasts a wide range of top-quality seafood and tempts diners with the freshest dishes. Kong Xiang Coffee is a brisk, fresh blend of space and art that hosts occasional live performances, offering customers delicious fare in an appealing environment, and bringing people together in a highly sociable setting.
Benefiting from a package of government policies named “Measures to Promote the Steady Growth of the Wholesale, Retail, Accommodation and Catering Industries in Zhongshan City in 2022, which aims to boost the regional economy and livelihoods, the gross domestic product of Zhongshan City in the first three quarters of 2022 was RMB259.48 billion, 1.2% higher than in the same period of the previous year. Zhongshan City’s consumer market has recovered well, and total retail sales of social consumer goods in the first three quarters were worth RMB120.89 billion, up 5.1% year on year. Expressing its confidence in Zhongshan City’s huge potential of future development, the Group strategically added the two restaurants in Zhongshan’s busy city centre following the earlier opening of restaurants The Hong Kong Wharf and Zhi.HUTAU* there in June, marking a further rapid expansion of Wantian Catering’s business map in the area within a short period of time.
According to the Group’s management, the Group successfully acquired Shenzhen Wealth Source and strategically added two restaurants in Zhongshan city, demonstrating its determination and active deployment to strengthen the development of the food supply and catering chain businesses. To embrace challenges and lay solid foundations for growth in the post-pandemic era, the Group will extend its existing business into the Greater Bay Area market, which is home to a very large customer population, while leveraging the strong synergies between its three main businesses – food supply, catering chain, and environmental protection and technology. Looking ahead, China Wantian Holdings aims to enhance the diversity of its development strategies by expanding its businesses. Its Greater Bay Area business will be its biggest driver of revenue growth and is expected to generate steady and sustainable income over the long term.
* The English names are not the official names and are translated for reference purpose only.
About China Wantian Holdings Limited
China Wantian Holdings Limited (01854.HK) is an investment holding company. The Group is principally engaged in food supply, catering chain and environmental protection and technology. In May 2022, China Wantian Holdings established its Greater Bay Area headquarters in Shenzhen, marking its official debut in the Greater Bay Area market to actively establish a leading green brand in the Greater Bay Area to provide customers with fresh, healthy and safe food, striving to become a leading lifestyle service provider in China.
For more details, please visit: chinawantian.etnet.com.hk
Topic: Press release summary