Gaoke Holdings (01676) announced that on June 12, 2024, its wholly-owned subsidiary Jinshenghai...
Gaoke Holdings (01676) announced that on June 12, 2024, its wholly-owned subsidiary Jinshenghai Holdings Limited signed a second batch of acquisition agreements with multiple suppliers, involving the acquisition of equipment related to supplying water drinks and small snacks for bars established in China. The total cost amounts to RMB 2.0276 million.
The company's current business is packaging and selling dried seafood, algae, fungi, and seafood snack food in China. Since 2020, the group has accumulated losses exceeding RMB 270 million, mainly due to its packaging and sales of dried seafood, algae, fungi, and seafood snack food business. Considering the uncertainty of the Chinese economic outlook and increased competition after COVID-19, the company believes that the prospects for the seafood packaging and sales business remain uncertain. Without reducing its scale, the current operating scale of the seafood packaging and sales business will remain unchanged.
Therefore, the board of directors believes that the group needs to adopt a diversified business development strategy, enter new markets, expand its business, and maintain its competitiveness.