Addentax Group Corp. announced the proposed strategic acquisition of the offshore wealth management and integrated cross-border service business of Hong Kong-based Riches Group, a provider of global asset allocation and cross-border services. The Company believes that, if completed, the proposed acquisition would support the Company's global expansion strategy by facilitating the integration of Riches Group's offshore business ecosystem, AI-enabled financial solutions, and digital currency/crypto service offerings. Based on preliminary internal estimates and subject to final closing and integration, the Company anticipates that the proposed acquisition could contribute approximately HKD 300 million in annualized revenue.

Riches Group, headquartered in Hong Kong, has built a diversified service ecosystem, which includes global wealth management, international education, immigration consulting, and cross-border healthcare services. Riches Group has historically served high-net-worth clients across multiple jurisdictions. Subject to the completion of the proposed acquisition, the Company would gain access to Riches Group's core business assets, including its full suite of wealth management services, which range from private banking and fund custody to global fixed-income products and offshore/US dollar insurance. Based on information provided by Riches Group, these services have historically generated monthly transaction volumes exceeding HK$100 million. The proposed acquisition would also include Riches Group's cross-border lifestyle services, such as global property investment and management, international education planning, investment residency and citizenship, and medical travel services. Additionally, the acquisition is expected to cover Riches Group's corporate and fiduciary services, including offshore company registration, tax planning, and global trust establishment services, which have historically supported over 1,000 high-net-worth families and more than 10,000 households worldwide.

The proposed acquisition is expected to provide the Company with access to Riches Group's AI-enabled wealth advisory capabilities. Riches Group has developed proprietary algorithms designed to support data-driven, personalized asset allocation strategies, real-time risk assessments, and market insights. The Company believes that, if integrated following completion of the acquisition, these capabilities will enhance the precision and efficiency of the Company's global wealth management services. In addition, subject to completion of the acquisition, the Company would obtain access to Riches Group's experience in regulated digital asset-related services, including compliant digital currency custody and investment solutions operating within Hong Kong's regulatory framework. The Company believes that these capabilities could support the offering of regulated digital asset exposure as part of diversified offshore investment portfolios, consistent with applicable regulatory requirements and evolving market demand.

This proposed acquisition is designed to support the Company's expansion in the global fintech sector. Subject to completion of the acquisition, the Company intends to expand its offshore business footprint, gaining access to Riches Group's established network and leveraging its local expertise to enhance its presence in high-growth markets such as Southeast Asia, Europe, and North America. The Company also believes that, if completed, the acquisition could strengthen the Company's client network through the integration of Riches Group's high-net-worth client base and its strategic partnerships with over 100 international institutions. This expanded platform is expected to support the Company's ability to serve the global high-end financial needs of its clients. Moreover, following completion of the acquisition, the Company anticipates benefiting from the integration of Riches Group's professional team of over 4,000 advisors, along with its AI and digital currency R&D capabilities. The Company believes that these resources could support continued technological development and product innovation within the Company's cross-border financial services.

Looking ahead, subject to the completion of the proposed acquisition, the Company expects to be able to leverage its Nasdaq-listed platform, access to global capital markets, and brand profile together with Riches Group's offshore operational capabilities to support the development of an integrated cross-border financial services platform. The Company believes that this combination could enhance its ability to serve clients across multiple jurisdictions within the global financial technology sector.