PACIFIC LEGEND (08547) announced that on September 23, 2024, its wholly-owned subsidiary JF (Greater Bay) Group Company Limited proposed to acquire an additional 40% equity interest in Hong Kong Taychen Eco-agricultural Development Co., Ltd. from Yin Jin Ying for HK$4.5 million, of which HK$4.0215 million will be paid in cash and HK$478,500 will be paid by the Company by issuing and allotting to the seller the consideration shares at the issue price of HK$0.165 per share.

As of the date of this announcement and immediately prior to completion, the target company was held by the seller for 60% and by the buyer for 40%; China Company (Huizhou Taychen Eco-agricultural Development Co., Ltd.) was held by the target company for 50% and by an independent third party for 50%. China Company is mainly engaged in animal husbandry.

The directors believe that the acquisition is a positive investment opportunity for the Company to expand and diversify its business portfolio. The board notes that China Company has achieved stable revenue and profit in the past two fiscal years. Unlike the Company's furniture business, China Company's animal husbandry business is supported by stable demand for Chinese food and is less affected by COVID-19. The board expects that China's economic recovery from COVID-19 will also be beneficial to China Company's business. Given China Company's business prospects, the board believes that the investment in China Company will bring stable and additional revenue sources to the Group as China Company's business further develops. Meanwhile, the profit guarantee and buyback responsibility provided by the seller can protect the Group's interests in case China Company fails to meet the expected profit level.