Core Viewpoint - Oriental Rise Holdings Limited has entered into a non-binding letter of intent to acquire 100% equity interests in Fujian Daohe Tea Technology Co., Ltd. and Ningde Minji Tea Co., Ltd., aiming to strengthen its position in China's tea industry and expand its distribution capabilities [1][5]. Group 1: Acquisition Details - The acquisition targets, Fujian Daohe and Ningde Minji, are recognized as leading tea distributors in China, with Daohe known for premium tea products and advanced processing technology, while Minji focuses on nationwide tea distribution through both online and offline channels [2][3]. - The letter of intent marks a significant step in Oriental Rise's strategy to diversify its portfolio within the consumer goods and wellness sectors in China [1][4]. Group 2: Strategic Benefits - By combining Oriental Rise's capital strength and brand awareness with the targets' established distribution networks and heritage in tea culture, the company expects to unlock significant synergies across research and development, distribution, and branding [3][4]. - The integration is anticipated to enhance supply chain resilience, expand market access, and enable the development of high-margin, value-added tea products tailored to market demands [3][4]. Group 3: Long-term Strategy - The contemplated acquisition aligns with Oriental Rise's long-term strategy to broaden its tea distribution footprint and strengthen vertical integration, which is expected to accelerate revenue growth and improve operational efficiency [4][5]. - The CEO of Oriental Rise emphasized that this potential transaction would significantly expand the company's distribution capabilities and customer base, ultimately adding value to the business and shareholders [5].