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HONG KONG, June 8, 2021 /PRNewswire/ -- Ying Hai Group Holdings Company Limited ("the Company" or "Ying Hai Group", together with its subsidiaries, the "Group", HKSE stock code: 8668) is pleased to announce that, the Group will acquire Zhuhai Huanya International Tourism Co., Ltd. ("Target Company") entered into a legally binding MOU at a consideration of RMB800,000 (equivalent to approximately HK$976,000). After the completion of the Possible Acquisition, the financial results of the Target Company will be consolidated into the financial results of the Group and therefore, the Target Company will become a wholly owned subsidiary of the Company.
The Target Company involves travel business and selling air tickets and currently holds a permit to carry out travel agency in the PRC and is also accredited as a member of the International Air Transport Association ("IATA") and is permitted to sell international air passenger transportation.
The Group's business was significantly undermined by the COVID-19 pandemic (the "Pandemic") and the adverse impact of the Pandemic over the business of the Group is expected to continue to the near future. Thus, the Group considered it is to be in the interest of the Company and its shareholders to diversify its business and look for new business opportunities. Since the entry restrictions between Macau and PRC have become less stringent, it can be reasonably expected that the PRC tourists will gradually resume their travel to Macau.
The acquisition of a tourism company in the PRC is expected to bring synergy to the existing tourism business in Macau by expanding the sales network to the PRC. Further, the acquisition of a PRC tourism company would help the Group facilitate its cooperation with other PRC tourism companies and PRC hotels and thus expand its tourism business in the PRC market in the long run.
Mr. Choi Wai Chan, Chairman, Chief Executive Officer and Executive Director of the Group said: "The Group strategically targets to strengthen our established market position in Macau's tourism industry, to bring desirable profit and investment returns to the shareholders and promote sustainable development in the future. Thus, we have been strategically seeking cooperation opportunities with other travel agencies to expand the existing business. The acquisition will not only expand the Macau tourism industry into China, but also enable the Group to exploit other opportunities to generate synergies in the sales of hotel rooms and car rentals. Looking forward, the Group will continue to strengthen the scale of business development, gain more market share and increases our competitiveness."
About Ying Hai Group Holdings Company Limited
Ying Hai Group Holdings Company Limited was established in 2014, the first listed tourism company in Macao. The Group committed to innovation and attempt and integrated online and offline channels in optimizing our services, in order to provide the newest tourism resources, products, and customized services to our customers. The Group's services including tourism services, entertainment, and cultural and creative products.
