On December 10, Gelonghui reported that CH BEIDAHUANG (00039.HK) announced that a wholly-owned subsidiary has signed an investment cooperation agreement with Yueyang Huamo Enterprise Management Partnership (Limited Partnership), Hunan Tianyufu Trading Co., Ltd., Hunan Weidaoshizuo Food Co., Ltd., and Changsha Chenye Enterprise Management Co., Ltd., collectively referred to as ("the Business Partners"). The agreement concerns the establishment of a company, Hunan Magic Food Technology Co., Ltd. ("Magic Food"), dedicated to producing and selling 100,000 tons of konjac raw material and 10,000 tons of konjac Snack Food, Pre-Cooked Food products, and more each year. The Business Partners have extensive experience in the production and sales of Snack Food and Pre-Cooked Food. The primary target market for Magic Food in the initial stage is China, with potential future expansion to Other countries. The company believes that the konjac food market has good development prospects.
As of the announcement date, Magic Food has recorded sales of konjac raw materials and konjac Snack Food totaling approximately 13 million yuan. The Board of Directors believes that the production and sales of konjac raw materials and konjac Snack Food may provide the company with a continuous revenue source and maximize long-term returns for the company and its Shareholders.
