(Hong Kong, 20 November 2015) Hang Fat Ginseng Holdings Company Limited (“Hang Fat Ginseng”, together with its subsidiaries, the “Group”, Stock Code: 911), the world’s largest first-level American ginseng wholesaler, is pleased to announce that yesterday the Group entered into the MOU with the Vendor and the Guarantors to acquire 51% equity interest of a company principally engaged in intelligent oxygen supply at a consideration of less than RMB200 million, thereby to develop its branded products and capture the fast growing demand for intelligent oxygen supply in China.
Pursuant to the MOU, Huge Hope Holdings Limited, an indirect wholly-owned subsidiary of the Group, plans to acquire the entire issued share capital and the sale loan of Golden Galaxy Investments Limited (“Target”). The Target Group is expected to be formed by the Target, Leading View (HK) (wholly-owned by the Target) and Shenzhen Zhongwu Xinghua Technology Development Co., Ltd (“PRC Company”), and this is undergoing a reorganization. Upon completion of the reorganization, the entire equity interest of the PRC Company shall be owned as to 51% by Leading View (HK) and as to 49% by an independent third party.
The PRC Company is principally engaged in the business of intelligent oxygen supply, including: (i) the research and development, sales, application, technical consulting, technical training and technical testing of machinery and electronic equipment; (ii) the business of investments, and imports and exports; and (iii) the manufacturing of machinery and electronic equipment.
Hang Fat Ginseng believes that because of the continuous increase in disposable income of customers in China, along with accelerating urbanisation and aging demographics, people pay more attention to their health and quality of life, leading to the sustained demand for healthcare products. The Group is actively exploring co-operation opportunities with professionals and experts to develop its branded products. Hang Fat Ginseng will remain dominant in the market through product diversification and differentiation.
Mr. Yeung Wing Yan, Chairman and Chief Executive Officer of Hang Fat Ginseng, said: “The acquisition could expand the Group’s existing businesses to the production of functional healthcare products in response to the growing demand from the public on health awareness, achieving the strategy of universal health. We believe that demand for the intelligent oxygen supply in the PRC will be robust in view of the increasing health awareness of the people especially for those who lives in high altitude areas, and that the intelligent oxygen supply would also improve the air quality in areas with high population density, such as hospitals and shopping malls.”