Best Food Holding details equity interest disposal valuation and compliance actions

Best Food Holding Company Limited's disposal of equity interest in a target company was based on an appraised value of approximately RMB2,716.8 million for 100% equity. An independent valuer determined this using a market approach, primarily utilizing a price-to-earnings (P/E) ratio due to its importance in driving shareholder value. Other multiples, such as price to book and price to sales, were not adopted due to limitations in capturing intangible assets or profitability.

The target company's trailing 12-month net profit, as of the valuation date, was RMB81,165,000, covering the period from July 1, 2024, to June 30, 2025. A Discount for Lack of Marketability (DLOM) of 8.05% was applied to the equity interest, estimated using the Finnerty method with a time to maturity of 0.48 years and a volatility of 51%.

The company also addressed a previous non-compliance with Listing Rules regarding the timely publication of an announcement. Remedial actions include enhanced reporting procedures, additional staff training on transaction definitions and Listing Rules requirements, and regular consultation with legal and accounting professionals.