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CHINA TONTINE WINES GROUP LIMITED
中國通天酒業集團有限公司
(incorporated in Bermuda with limited liability)
(Stock Code: 389)
BUSINESS UPDATE
China Tontine Wines Group Limited intends to acquire, through a wholly-owned subsidiary, a commercial underground parking lot (the "Property") in Tonghua County, Jilin Province, in which the Company's production facilities are located. The contractor/actual controller of the Property is a third party independent of the Company (or its subsidiaries). The Property is in the "Shangpin Yujingwan" (CBD nature) of Tonghua County, the above-ground part of which is the largest farmer's market in Tonghua County. It is on the prime location along the river in Tonghua County with a number of high-end residential buildings in the surrounding areas, and is adjacent to Medical Center of Tonghua County (People's Hospital of Tonghua County), a key middle school and a key primary school. The Property possesses tremendous business development prospect and predictable room for appreciation and operational profitability.
At present, the Group has approached in many times and reached a preliminary cooperation intention with the contractor/actual controller of the Property, and there is no legal binding at this stage. We will make due diligence and valuation assessment on the Property in the near future. After the completion of the due diligence and valuation, which meet the expected results of the Group, we will sign a formal cooperation agreement (the "Acquisition") with the actual controller of the Property. If the Acquisition is materialized, the Company expects that the transaction will constitute a notifiable transaction under Chapter 14 of the Listing Rules, and will make an announcement to notify market investors in due course.
The directors of the Group believe that: once the above transaction is implemented, it will be an innovative exploration for the Group to open up its diversified development direction. For the Group, the transaction will generate new business operations, create additional commercial value with a new profit growth point for the Group. At the same time, with the good operation of the Property, the Group will accumulate its experience in operating commercial property and thus lay a solid foundation for the Group to expand its commercial property operation and development business.
By order of the Board
China Tontine Wines Group Limited
Wang Guangyuan
Chairman and Executive Director
11 September 2020
As at the date of this announcement, the Board comprises Mr Wang Guangyuan, Mr Zhang Hebin and Ms Wang Lijun as executive directors and Dr Cheng Vincent, Mr Lai Chi Keung, Albert and Mr Yang Qiang as independent non-executive directors.
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