Zixin Group Holdings Announces Incorporation of New Wholly-Owned Subsidiary in Hainan Free Trade Port

Key Highlights

• Zixin Group Holdings Limited has incorporated a new wholly-owned subsidiary, Hainan Zixin Sweet Potato Industry Technology Co., Ltd. (海南紫心薯业科技有限公司), in the Hainan Free Trade Port, China.
• The incorporation was executed via Zixin International Pte. Ltd., itself a wholly-owned subsidiary of the Group.
• Date of incorporation: 10 December 2025
• Registered share capital: SGD 5,000,000
• Paid-up share capital: SGD 3,000,000
• Ownership: 100% owned by Zixin International Pte. Ltd., ensuring full control by the Group.
• Principal activities: Processing and production of food, food sales, urban distribution and delivery services (excluding dangerous goods), tourism, accommodation, and catering services.

Strategic Importance and Price-Sensitive Details

• Strategic Rationale: The incorporation of Hainan Zixin is a major step for Zixin Group Holdings to implement its circular economy business model in Hainan province. The move is positioned to capitalize on the Hainan Free Trade Port’s tax incentives and market access, supporting efficient, sustainable, and long-term growth.
• Zero-Tariff Initiatives: The company aims to leverage the Hainan Free Trade Port’s two-tiered zero-tariff initiatives. Goods processed in Hainan with at least 30% value added qualify for exemption from import duties when exported to mainland China. Additionally, eligible entities can import certain goods into Hainan FTP without import tariffs, VAT, or consumption tax. These measures could significantly reduce operational costs and enhance profitability for Zixin’s exports from Hainan.
• Funding Source: The incorporation has been funded via net proceeds from share option exercises conducted in September and November 2025. This demonstrates the company’s active capital management and efficient allocation of recent fundraising for strategic expansion.
• Financial Impact: The company states that the incorporation of Hainan Zixin is not expected to have any material impact on the net tangible assets or earnings per share for the financial year ending 31 March 2026. However, the medium-to-long-term effects of enhanced tax efficiency and market access could be significant as operations ramp up.
• Regulatory Milestone: The Hainan Free Trade Port will officially implement its zero-tariff and “customs closure” system on 18 December 2025, a crucial regulatory development that underpins Zixin’s strategic move.
• Corporate Governance: None of the directors or controlling shareholders, or their associates, have any direct or indirect interest in the incorporation beyond their existing shareholdings, ensuring alignment with best practices in corporate governance.

Implications for Shareholders

• Growth Potential: By establishing a presence in Hainan, Zixin Group is positioning itself at the forefront of a newly liberalized trade hub, with substantial opportunities for cost savings, tax efficiency, and access to both domestic and international markets.
• Regulatory Advantage: The timing of incorporation coincides with the implementation of key zero-tariff measures in the Hainan Free Trade Port, potentially giving Zixin a first-mover advantage.
• Future Outlook: While immediate financial impact is minimal, the strategic benefits and potential for enhanced profitability as the subsidiary becomes operational could be a catalyst for future share price appreciation.
• Potential Price Sensitivity: Investors should note that the operational success and ability to capitalize on these new regulatory incentives could drive medium- and long-term value for shareholders.

Conclusion

The incorporation of Hainan Zixin Sweet Potato Industry Technology Co., Ltd. marks a significant strategic milestone for Zixin Group Holdings Limited, reflecting its commitment to growth and operational efficiency in a rapidly evolving trade environment. The alignment with the Hainan Free Trade Port’s new zero-tariff regime, coupled with prudent financial management, sets the stage for sustained value creation, making this development highly relevant for investors and potentially price sensitive.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors are advised to conduct their own research and consult with professional advisors before making investment decisions. The information in this article is based on company announcements and may be subject to change or further developments.

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