WAN KEI GROUP's Subsidiary Acquires 70% Stake in House Clover Ventures Limited

Stock News02-05 18:38

WAN KEI GROUP (01718) announced that on February 5, 2026, its wholly-owned subsidiary (the Buyer) entered into a sale and purchase agreement with an independent third party (the Seller), who is the sole shareholder of the target company. According to the agreement, the Buyer has agreed to acquire, and the Seller has agreed to sell, 70% of the total issued shares of House Clover Ventures Limited, a limited company incorporated in the British Virgin Islands, for a cash consideration of HKD 2.31 million. Following the completion of the acquisition, the target company will become a non-wholly-owned subsidiary of WAN KEI GROUP, and its financial results will be consolidated into the Group's financial statements.

House Clover Ventures Limited is engaged in the food and beverage business and has entered into an exclusive distribution and trademark licensing agreement with a well-known Japanese coffee brand. The company currently operates two premium coffee shops for this Japanese brand in prime locations in Shanghai and manages an online sales platform for the same brand's coffee beans and other coffee-related products. Through this acquisition, the Group gains direct entry into Shanghai's rapidly growing specialty coffee retail sector. Demand for high-quality specialty coffee in the region continues to rise, driven by increasing consumer purchasing power, evolving urban lifestyles, and a preference for premium brand experiences.

The target company's established operations provide a diversified and recurring revenue stream through its physical coffee shops and e-commerce sales of coffee beans and related products. The Board of Directors believes the acquisition presents a valuable opportunity for the Group to diversify its business and revenue sources, which is expected to enhance the Group's overall business performance and profitability, aligning with the interests of the company and its shareholders.

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