Fengyi Group (08245) plans to acquire 70% of Maoli Investment's shares and 100% of Asian Link Limited's shares for HK$5.07 million

According to the Zhitong Finance App, Fengyi Group (08245) issued an announcement. On August 24, 2026 (after the trading period), the buyer Joy Ultima Holdings Limited (a wholly-owned subsidiary of the Company) signed an agreement with the seller Mr. Lui Hon Fai to buy and sell shares at a total cost of HK$5.07 million. The completion of the agreement will not be effective until (among others) the prerequisites contained in the agreement have been met.

Sales shares are 70% of the issued share capital of Maoli Investment Co., Ltd. and 100% of the issued share capital of Asian Link Limited.

The target company is mainly engaged in the retail and wholesale business of mobile phones and accessories. After completion, the target company will become an indirect non-wholly-owned subsidiary of the Company and an indirect wholly-owned subsidiary of the Company, respectively. Therefore, the financial data of the target company will be incorporated into the Group's accounts.

The target company operates in the retail and wholesale sector of mobile phones and accessories through its Guanghui Communications network. The board of directors believes that this business can complement the Group's existing capabilities in product procurement, trade, supply chain coordination and sales execution, so that the Group can use its experience in consumer electronics-related product business to support the expansion of target companies and improve operational efficiency after completion.

Furthermore, the acquisition can combine the target company's mature retail network with the Group's product development and procurement advantages to create opportunities for the Group to explore cross-sales, expand product portfolio and channel cooperation, thereby enhancing the Group's overall competitiveness and market penetration.

In the past, a significant proportion of the Group's revenue came from a highly concentrated customer base, and its revenue performance was very sensitive to the customer's purchase order pattern. The acquisition enabled the Group to reach out to different customer groups and demand cycles in the mobile phone and accessories wholesale sector, thereby expanding the Group's revenue streams and reducing reliance on existing product categories and customer portfolios.

Therefore, the Board believes that the target company will help establish a more balanced business structure and enhance the Group's resilience in the face of fluctuations in individual product categories.

The Board believes that the acquisition will (a) bring additional revenue streams, (b) enhance the Group's overall profitability, and (c) strengthen the Group's business scale in terms of revenue and profit base. The company also plans to maintain the target company's existing core management team. The board of directors believes this move is essential to maintain the continuity of operations and support the target company's future development.