Longping High-Tech to sell stake in subsidiary

Yuan Longping High-Tech Agriculture (SZSE:000998) announced today it will transfer 34% equity of its wholly-owned subsidiary Tianjin Deruite Seed Co., Ltd. to Mitsui & Co., Ltd. or its designated entity for ¥489.6 million. This move aims to bolster Longping High-Tech's competitiveness in the vegetable seed sector. Post-transaction, Longping High-Tech will retain a 66% stake in Deruite, which will remain a subsidiary. The deal, approved by the company's board, does not constitute a related-party transaction or a major asset restructuring. The transaction is based on a valuation from Beijing Kunyuan Zhicheng Asset Appraisal, valuing Deruite's total equity at ¥1.318 billion. The agreement is subject to customary closing conditions. Yuan Longping High-Tech expects the partnership with Mitsui to enhance its vegetable seed business through global market access and supply chain management.