Ronghui Holdings (08213) subsidiary plans to acquire 51% of a company operating a Chinese restaurant business in Shenzhen

Zhitong Finance App News, Ronghui Holdings (08213) announced that the company's indirect subsidiary (potential buyer) is currently discussing with an independent third party (potential seller) the possibility of acquiring 51% of the shares of a company operating a Chinese restaurant business in Shenzhen, People's Republic of China (target company).

According to reports, the target company currently operates a Chinese restaurant in Nanshan District, Shenzhen, focusing on Cantonese Shunde cuisine, with a hall and private dining room. Its management and cooking team have many years of experience in Chinese restaurant operation and production research and development. The restaurant continues to operate.

The Board believes that the possible acquisition could bring the following benefits to the Group: (a) complementary experience - the potential seller has experience in catering operations in China, while the group has local restaurant operation experience in Hong Kong. Both parties can complement each other's strengths and weaknesses in store management, supply chain and brand operations to help shorten the Group's adaptation period in the mainland market; (b) cater to the tastes and dining habits of Hong Kong consumers - the Group is familiar with the tastes and dining habits of Hong Kong consumers, and can cooperate with potential sellers to make corresponding adjustments to the menu, pricing and service to cater to the trend of Hong Kong people traveling north to Shenzhen to expand the company the source of customers; and (c) Obtaining an already operating business - Acquiring the rights of a restaurant that is already in operation and has an existing customer base and staff team is faster than finding a new location and opening a new store on your own, and can also avoid early losses caused by the renovation period and nurturing period.