According to the Zhitong Finance App, Yiyuan Liquor (08146) announced that on December 5, 2024, the company plans to sell all of Pacific Surplus's issued share capital and pending loans to the company chairman, CEO, executive director and controlling shareholder Chen Fang, 30% of the issued share capital in Epic Wealth at the cost of HK$71.28 million and HK$38.88 million respectively.

The loan for sale is an interest-free loan provided by the company to Wan Hao, and Wan Ho will become a wholly-owned subsidiary of PacificSurPlus after the completion of the restructuring of Fu Jian Dexi.

Additionally, the Board of Directors recommended (i) declaring, distributing and paying PacificSurPlus special dividend to shareholders, that is, 7.802 HK cents per share when independent shareholders approve the resolution relating to the sale of Pacific Surplus and when Pacific Surplus completes the implementation; and (ii) declare, distribute and disburse to shareholders when independent shareholders approve the resolution relating to the sale of Epic Wealth and when EpicWealth completes the actual implementation The EpicWealth special dividend is a special dividend of HK4.256 cents per share.

After considering the view that the outlook for the whiskey and gin industry is slowing and uncertain, and the board of directors agreed on its experience and industry knowledge and insight consultation on the development of the whiskey and gin industry; the distillery business failed to further support the working capital requirements of the distillery business; and even though the distillery business began production and operation in the past year and the products may be launched in mid-2026, the directors believe that the sale of the distillery business is beneficial to the group and shareholders as a whole.

After the Epic Wealth sale is completed, the group will continue to own 70% interest in the winery business. The Group has invested significant resources to promote its brand, and the directors believe that due to its good value, the brand has been recognized by consumers. The directors remain confident about the future of the winery's business in the long run. In the short term, selling minority shareholders' rights in the winery business will ease the Group's working capital burden when the market is sluggish.

According to reports, after the completion of the restructuring at Fujian Dexi, Pacific Surplus Group will wholly own Fujian Dexi and will mainly be engaged in distillery business, including the production of whiskey and the production and sale of gin products through the Longyan Distillery in Longyan City, Fujian Province, China.

Epic Wealth is a limited company incorporated under the laws of the British Virgin Islands and is directly wholly owned by the company. Epic Wealth Group (after the completion of the Epic Wealth restructuring and Fujian Dexi restructuring) is mainly engaged in winery business, including the production and distribution of wine products, planting vines, and selling wine grapes.