HK FOOD INV(00060) has entered into a joint venture agreement with Mog Mog to establish a joint venture company, Gourmet Horizon Holdings Limited.

HK FOOD INV (00060) announced that on August 24, 2026, its wholly-owned subsidiary Standard Castle entered into a joint venture agreement with Mog Mog to establish the joint venture company Gourmet Horizon Holdings Limited. According to the terms of the joint venture agreement, the total contribution amount for the joint venture company will be USD 9 million (approximately HKD 70.2 million), with Standard Castle and Mog Mog contributing USD 2.25 million (approximately HKD 17.55 million) and USD 6.75 million (approximately HKD 52.65 million), respectively. Standard Castle and Mog Mog will hold 25% and 75% of the issued capital of the joint venture company, respectively, and the joint venture company will be accounted for as an associate of the company using the equity method, with its financial performance not being consolidated into the company's financial statements. The main business of the joint venture company will be investment and acquisition in the food and beverage chain industry. To achieve the Groups strategic goal of sustainable development in the food and beverage sector, the Group has been actively seeking new business opportunities and will gradually allocate resources to seize new business prospects, aiming to develop new income sources and diversify its income streams. The Group has ample industry resources in the food and beverage sector, possesses a large network of suppliers and customers, and enjoys a good industry reputation. On the other hand, Mog Mog operates a large catering group and has rich experience in the food and beverage industry. The primary goal of the Group and Mog Mog is to develop the joint venture company into a leading dining experience platform, and the joint venture company aims to achieve synergies by leveraging the complementary strengths of both parties. The Company believes that establishing the joint venture company will bring new growth opportunities for the Group and enable it to expand its business into the food and beverage industry. As of the date of this announcement, the Group, Mog Mog, and related parties are still in discussions regarding several opportunities. Once the necessary funding is secured and related preparations are completed, the joint venture company will be well-positioned to seize these opportunities, which is in the best interest of the Company and its shareholders. The Board of Directors is confident about the Group's future development and believes that through continuous business expansion and enhancement of overall strength, the Group will create sustainable and stable value growth for its shareholders.