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
China Wantian Holdings Limited (“China Wantian Holdings”, together with its subsidiaries, the “Group”; stock code: 1854.HK) is pleased to announce that Great Point Limited (“Great Point”), the Group’s direct wholly-owned subsidiary, intends to acquire 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.
The total consideration of the acquisition is HK$44.0 million and will be settled by China Wantian Holdings’ allotment and issue of up to 91,660,000 consideration shares at the issue price of HK$0.48 per consideration share. The consideration shares represent approximately 5.96% of the issued share capital of the Group as at 7 November 2022 and approximately 5.62% of the issued share capital of the Group as enlarged by the allotment and issue of the consideration shares (assuming there will be no change in the total number of issued shares between 7 November 2022 and the allotment and issue of the consideration shares). The allotment and issue of the consideration shares will be made pursuant to the general mandate, and hence is not subject to the Shareholders’ approval.
Acquisition completion is subject to the fulfilment of conditions, including Great Point having completed and being satisfied with the results of its due diligence review on the sale shares and the Target Group. Meanwhile, according to the share purchase agreement, 91,660,000 consideration shares will be allotted and issued in three tranches in accordance with the profit conditions agreed between the parties. The first, second and third tranche consideration shares will be approximately 9,160,000 consideration shares, 27,490,000 consideration shares and 55,010,000 consideration shares respectively. Among which, the second and third tranche consideration shares will be allotted and issued when the audited net profit after tax (excluding any extraordinary or exceptional profit) for the year ending 31 March 2023 and 2024 of Shenzhen Wealth Source are not less than 85% of target net profits (RMB5.45 million and RMB7.50 million representatively). Upon the acquisition completion, the Target Group will become wholly-owned subsidiaries of China Wantian Holdings and their financial results will be consolidated into China Wantian Holdings’ consolidated financial statements.
In May 2022, the Group established its Greater Bay Area headquarters in Shenzhen, marking its official debut in the high-potential Greater Bay Area market. The Group will expand its existing business into the Greater Bay Area market, which has a large consumer base, and related downstream businesses, meanwhile stepping up its efforts to develop the three key businesses including supply chain and catering, as well as environmental protection and technology. 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 returns for investors and shareholders.
The Target Group which the Group proposes to acquire 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. Therefore, China Wantian Holdings’ management believes that the acquisition is an ideal business opportunity for the Group to expand its existing supply chain business operation in Hong Kong to the Greater Bay Area market, adding that the target net profits of Shenzhen Wealth Source are promising in the next two years, the acquisition is poised to broaden China Wantian Holdings’ revenue stream, thus contributing stable income in the future.
* The English name is not the official name and is translated for reference purpose only.
About China Wantian Holdings Limited China Wantian Holdings Limited (1854.HK) is an investment holding company. The Group is principally engaged in sourcing, processing and supplying food ingredients, with a focus on the provision of vegetables and fruit to food service operators in Hong Kong. It supplies in excess of 1,300 food ingredients to more than 480 customers. In May 2022, China Wantian Holdings established its Greater Bay Area headquarters in Shenzhen, marking its official debut in the Greater Bay Area market. The Group will focus on developing three main businesses in this market, including supply chain and catering, as well as environmental protection and technology to actively establish a leading green brand in the Greater Bay Area to provide customers with fresh, healthy and safe food.
For more details, please visit: chinawantian.etnet.com.hk
China Wantian Holdings Limited (“China Wantian” or the “Group”; stock code: 01854.HK) is pleased to announce its audited annual results for the year ended 31 March 2022 (the “financial year” or the “year under review”).
Mr. HOOY Kok Wai (left), Chairman of the Board and Executive Director; and Mr. ZHONG Xueyong (right), Chief Executive Officer and Executive Director of China Wantian host the opening and unveiling ceremony of the Group’s Zhongshan Branch.
During the year under review, China Wantian continued to operate its business in Hong Kong. The Group is principally engaged in sourcing, processing and supplying food ingredients, with a focus on the provision of vegetables and fruit to food service operators in Hong Kong. It currently supplies in excess of 1,300 food ingredients to more than 480 customers. Leveraging the relaxation of social distancing measures and the 2021 Consumption Voucher Scheme by the Hong Kong government, the local consumer sentiment and operating environment in the catering industry gradually improved. Benefitting from an increase in orders with signs of revival in the food and beverage sector, the revenue of the Group recorded remarkable growth prior to the outbreak of the fifth wave of COVID-19 in Hong Kong. Total revenue of the year increased by approximately 19.7% year-on-year to approximately HK$127.7 million, with gross profit and gross profit margin of approximately HK$18.7 million (Year ended 31 March 2021: HK$13.2 million) and 14.6% (Year ended 31 March 2021: 12.4%) respectively. However, in support of its business development and expansion, higher operating expenses were incurred during the year under review, among which were legal and professional fees accrued in relation to the general offer. A provision for expected credit losses of approximately HK$5.4 million was recognised following the assessment of the credit history of its customers and market conditions during the year under review, loss for the year of approximately HK$11.0 million was subsequently recorded. The Board does not recommend the payment of a final dividend for the financial year (Year ended 31 March 2021: Nil).
In May 2022, the Group established its Greater Bay Area headquarters in Shenzhen’s Nanshan district, marking its official debut in the high-potential Greater Bay Area market. At the same time, the Group announced that it will double its effort to develop three main businesses including fresh food supply, retail and catering, as well as environmental protection and technology, grasping opportunities and actively enhancing its brand recognition in the Greater Bay Area, in order to expand its customer base and market share while enhancing diversity in business and maintaining its competitiveness.
With regards to the fresh food supply business, the Group will capitalise on its advantages in the Hong Kong supply chain business, exercising superior task management in respect of procurement, orders, inventory, receipt and delivery, boosting efficiency to deliver fresh ingredients to customers in a safe, efficient and cost-effective manner. At the same time, the Group plans to replicate its successful experience in the local market in the Greater Bay Area market and also identify potential business partners and explore opportunities in this new market to expedite its development, by working with leading partners and efficiently sharing resources, in hopes of grasping the huge demand of the Greater Bay Area market and expanding income source.
In addition, the Group will actively grow its downstream business, including retail- and catering-related business. The Group strives to seize the business opportunities of the retail and catering industry in the Greater Bay Area, further expanding its restaurant network to other cities and its catering business territory in the Greater Bay Area. Leveraging its advantages of having a whole industry supply chain that includes upstream, midstream and downstream businesses, the Group will open more restaurants featuring fresh ingredients and gradually establish its food and beverage brand “Wantian Catering”. Recently, the Group has strategically opened two restaurants named “Hong Kong Style Seafood Hot Pot Restaurant” and “Korean Seafood BBQ Restaurant” featuring fresh ingredients in Zhongshan city, Guangdong Province. The Group will actively enhance its brand recognition in the Greater Bay Area to expand its customer base and market share.
In the environmental protection and technology business, the Group actively supports the national development approach of “modern agricultural technology and environmental protection”, integrating agricultural technology and green environmental protection, utilising available rooftop for farming and increasing the urban green area. This enables the Group to promote the idea of a green city with the supplies of “safe vegetables”, and also promote the concept of green education to enterprises and schools in the Greater Bay Area, thus supporting the region’s sustainable development.
The Group will continue to adopt its multi-pronged approach to accelerate the business development in the Greater Bay Area. Subsequent to the establishment of its headquarters in the Greater Bay Area, the Group officially opened its Zhongshan Branch this month. On 23 June 2022, a grand opening and unveiling ceremony was held in its Zhongshan Branch with the presence of Mr. HOOY Kok Wai, Chairman of the Board and Executive Director; and Mr. ZHONG Xueyong, Chief Executive Officer and Executive Director of China Wantian. The establishment of Zhongshan Branch signifies that Zhongshan, Guangdong province will become the Group’s regional headquarters in the Zhuhai-Zhongshan-Jiangmen Economic Circle. The Group is also optimistic about the business prospects of Zhongshan, Guangdong Province, striving to embark its three main businesses from Zhongshan, Guangdong Province and gradually expand its businesses to the Greater Bay Area market.
Looking ahead, following the phased easing of social gathering restrictions by the Hong Kong government, the catering business environment has improved significantly. The Group expects its business in the city to develop steadily. At the same time, the role of the Group’s Hong Kong headquarters as a financial centre can provide full support as a strong backing to its Shenzhen headquarters. As the Chinese economy is expected to recover rapidly in the post-pandemic era, the Group’s Greater Bay Area business will become increasingly important. In the long run, the business in the Greater Bay Area is expected to bring stable and sustainable income to the Group and is poised to become the key growth engine for the Group’s business. The Group officially changed its Chinese and English name respectively to “China Wantian Holdings Limited” in December 2021, manifesting its adjustment in business strategies and proactive rejuvenation of corporate image, which fosters the future business development of the Group.
The Group’s management expressed that the Greater Bay Area, being one of China’s most open and economically vital regions, is of great importance for the nation’s continued development. With its huge market, unique regional advantages, open trade environment and dynamic industry structure, the Greater Bay Area will create unprecedented development opportunities for the Group. The establishment of the Group’s Shenzhen headquarters is the first part of its business development strategy for the Greater Bay Area. In the future, the Group will focus on developing three main businesses in this market, including fresh food supply, retail and catering, as well as environmental protection and technology. The Group will establish a whole-industry supply chain that includes upstream, midstream and downstream businesses in the Greater Bay Area, and boost its market share by leveraging its unique competitive advantages. The management believes that the three main business initiatives, with their strong synergies, will open up unique opportunities and facilitate the establishment of a leading green brand in the Greater Bay Area.
About China Wantian Holdings Limited China Wantian (1854.HK) is principally engaged in sourcing, processing and supplying food ingredients, with a focus on the provision of vegetables and fruit to food service operators in Hong Kong. It supplies in excess of 1,300 food ingredients to more than 480 customers. In May 2022, China Wantian established its Greater Bay Area headquarters in Shenzhen, marking its official debut in the Greater Bay Area market. The Group will focus on developing three main businesses in this market, including fresh food supply, retail and catering, as well as environmental protection and technology and actively establish a leading green brand in the Greater Bay Area to provide customers with fresh, healthy and safe food.
For more details, please visit: chinawantian.etnet.com.hk
