Halcyon Agri Announces Incorporation of New Subsidiary in China and Liquidation of Dormant Entity

Key Highlights for Investors

• Incorporation of New Indirect Subsidiary in China: The Group has established Xishuangbanna Mengrun Halcyon Rubber Co., Ltd. (“XMH”), a wholly-owned subsidiary under Yunnan Halcyon Rubber Tech. Co., Ltd., with a registered capital of RMB 25.6 million.
• Expansion of Manufacturing and Trading Capabilities: XMH will focus on the manufacture and sale of rubber products, rubber processing equipment, high-quality synthetic rubber, and provide import/export and related agency services across the People’s Republic of China.
• Liquidation of Dormant Subsidiary: Sinrio Thailand Pte. Ltd., an indirect wholly-owned and dormant subsidiary based in Singapore, has been struck off the Company Registry.
• Financial Impact: Both the incorporation of XMH and the liquidation of Sinrio Thailand Pte. Ltd. did not have any material impact on the consolidated net tangible assets per share or earnings per share for the financial year ended 31 December 2025.
• No Interests from Directors or Major Shareholders: None of the directors or controlling shareholders has any interest, direct or indirect, in these transactions, except through their shareholdings in Halcyon Agri.

Details of the Transactions

1. New Subsidiary in China: Xishuangbanna Mengrun Halcyon Rubber Co., Ltd. (“XMH”)

On 11 September 2025, Yunnan Halcyon Rubber Tech. Co., Ltd., an indirect 96.67%-owned subsidiary of Halcyon Agri Corporation Limited, incorporated XMH, a wholly-owned PRC-registered entity. XMH is strategically positioned to manufacture and trade a variety of rubber products, rubber processing machinery, and high-quality synthetic rubber. Additionally, XMH is set to engage in import and export of goods and provide related agency services. This move strengthens the Group’s footprint in the Chinese market, potentially unlocking new revenue streams and operational efficiencies in one of the world’s largest rubber markets.

2. Liquidation of Dormant Subsidiary: Sinrio Thailand Pte. Ltd.

As part of ongoing efforts to streamline its corporate structure, Halcyon Agri has struck off Sinrio Thailand Pte. Ltd., a dormant wholly-owned subsidiary, from the Singapore Company Registry as of 11 September 2025. The subsidiary had no active business operations and its removal is not expected to affect the Group’s financial or operational performance.

Shareholder Considerations

• Potential Share Price Impact:
  • The new subsidiary enhances Halcyon Agri’s ability to capture growth in China’s rubber industry, which investors may view positively for long-term value creation.
  • The liquidation of a dormant entity is a routine housekeeping measure and not expected to influence the share price.
  • Management has confirmed there is no material impact on the Company’s net tangible assets per share or earnings per share for the 2025 financial year as a result of these transactions, so immediate financial effects are limited.
• Corporate Governance: No directors or major shareholders have personal interests in these transactions, supporting transparency and strong governance.

Conclusion

The establishment of XMH signals Halcyon Agri’s commitment to business growth and operational expansion in the strategically important Chinese market. While the current financial impact is neutral, investors should monitor future updates on XMH’s performance and its contribution to Group earnings. The liquidation of a dormant subsidiary streamlines the corporate structure and has no adverse impact.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a professional adviser before making investment decisions. The author and publisher are not responsible for any losses or damages arising from the use of this information.

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