Stanley Agriculture adjusts business scope, waives stake in affiliate

Stanley Agriculture Group announced that its board of directors approved the waiver of its pre-emptive right to acquire a 51% stake in its associate, Hubei Yihua Songzi Fertilizer Co. Hubei Yihua Fertilizer Co. plans to transfer its 51% equity in Hubei Yihua Songzi Fertilizer, where Stanley Agriculture holds a 49% stake, to Hubei Yihua Chemical Industry Co. The move is aimed at optimizing management and operational efficiency, with no change in Stanley Agriculture's ownership percentage in Hubei Yihua Songzi Fertilizer post-transaction.

Additionally, the company completed a change in its business scope, registering the update with the Linyi Market Supervision Administration. Stanley Agriculture's business now includes the sale of agricultural and sideline products, horticultural products, and leasing services (excluding licensed leasing). Simultaneously, "warehousing services" were removed from its operational scope.

These strategic decisions are not expected to affect Stanley Agriculture's consolidated financial statements or cause a decrease in its shareholding ratio in Hubei Yihua Songzi Fertilizer, ensuring no adverse impact on its financial position or operational performance.