WANT WANT CHINA (00151) announced that on March 27, 2026: (i) Rong Wang, Beijing Ru Wang, and Beijing Wangyang entered into a share transfer agreement, whereby Rong Wang agreed to transfer its 50% equity interest in Beijing Wangyang to Beijing Ru Wang for a consideration of RMB 132.8 million; and (ii) Shen Wang, Hangzhou Da Wang, and Hangzhou Youshen entered into a share transfer agreement, whereby Shen Wang agreed to transfer its 40% equity interest in Hangzhou Youshen to Hangzhou Da Wang for a consideration of RMB 14.48 million. Beijing Ru Wang and Hangzhou Da Wang are limited liability companies incorporated in China and are 99.99% indirectly held subsidiaries of the Company. Their primary business involves the manufacturing and distribution of food and beverages. The Group's current core business is focused on three major categories: rice crackers, dairy products and beverages, and snack foods. Beijing Wangyang and Hangzhou Youshen have accumulated years of experience and resources in fresh food and baking filling production through joint venture operations. The Group's acquisition of stakes in Beijing Wangyang and Hangzhou Youshen is expected to help the Group expand its business boundaries and enter the fresh food and filling sectors. The Group remains optimistic about the potential for economic growth during the "16th Five-Year Plan" period (2026-2030) to drive the fresh food product market and hopes to gradually explore the fresh food product sector through the acquisition of the 50% stake in Beijing Wangyang. Beyond its established focus on the convenience store channel, Beijing Wangyang is also in discussions with several new retail platforms regarding cooperation opportunities; if realized, its market space is expected to further broaden. Following the acquisition of the stake in Beijing Wangyang, the Group can integrate resources such as channels, products, technology, and patents from Beijing Wangyang. This includes utilizing Beijing Wangyang's convenience store channels to sell the Group's products, while also using the Group's existing channels to sell Beijing Wangyang's products. Furthermore, the Group holds approximately a 7% stake in Warabeya Nichiyo. The acquisition of the 50% stake in Beijing Wangyang is also expected to assist the Group in promoting potential strategic cooperation and synergy with Warabeya Nichiyo in the future, covering domestic and international channels, products, and research and development. The fillings produced by Hangzhou Youshen can be applied to the Group's existing products and newly developed products. The Group's current products, including pastries, rice crackers, and fish sausage products, all have demand for filled centers. Concurrently, starting from the 2024/2025 fiscal year, the Group has established separate business divisions by product category to intensify new product development efforts, leading to a significant increase in the usage of fillings as a core raw material. The Group plans to use fillings produced by Hangzhou Youshen in its existing products and develop exclusive fillings tailored to the new product requirements of each business division to enhance product competitiveness. In addition to striving for stable or increasing sales from existing customers, Hangzhou Youshen is continuously pursuing the development of new customers and markets. After the Group acquires the stake in Hangzhou Youshen, Hangzhou Youshen can also leverage the Group's mature sales network to expand into external markets, achieving synergies and improving operational efficiency and competitiveness.
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