Zhitong Financial News, HSSP Intell (03626) announced that on February 7, 2024, the buyer Hang Sang (Siu Po) Holding Limited (a wholly-owned subsidiary of the company) entered into an agreement with the seller Baijie (Hong Kong) and the target company Tianyao Group to acquire 91% of the equity of the target company, with a cash consideration of 864HK$50,000. The target company is principally engaged in the operation of cafes in Hong Kong, serving gourmet coffee and a variety of Western and Japanese cuisine.
Upon completion, the Target Company will become a non-wholly owned subsidiary of the Company and the financial results, assets and liabilities of the Target Company will be consolidated into the Group's consolidated financial statements.
The acquisition represents a valuable opportunity for the Group to expand into the food and beverage industry in Hong Kong, which is expected to contribute to the Group's long-term growth and development. The acquisition diversifies the Group's business and the Group's existing food sales and distribution business can become a concrete example of the target company's café business. In addition, the profit after tax of the target company from the date of incorporation (i.e. 18 August 2022) and ending 31 August 2023 was approximately HK$1.3 million. The Board believes that the acquisition is likely to enhance the Company's profitability.