Oriental Rise Holding Limited Signs Non-Binding Letter of Intent to Acquire Hubei Daguan Tea Industry Group

Rhea-AI Summary

Oriental Rise (NASDAQ: ORIS) entered a non-binding letter of intent dated Dec 30, 2025 to acquire a controlling interest in Hubei Daguan Tea Industry Group, a vertically integrated tea producer in Yingshan County, Hubei.

The proposed deal aims to strengthen upstream supply control, optimize cost structure, improve product mix toward higher-margin teas, and advance Oriental Rise’s vertical integration and export capabilities. Completion is subject to due diligence, definitive agreements, and customary conditions.

Positive

• Secures upstream tea plantation and sourcing resources
• Adds scalable, automated production capacity
• Enhances access to export channels and international expansion
• Aims to improve product mix toward higher-margin offerings

Negative

• LOI is non-binding; transaction completion remains uncertain
• No disclosed purchase price or financial terms available

Key Figures

Interim revenue US$5.0M Six months ended Jun 30, 2025; down from US$7.7M

Gross margin 18% Six months ended Jun 30, 2025; down from 35%

Net profit US$108,000 Six months ended Jun 30, 2025; down from US$2.2M

Operating cash flow US$(1.5)M Six months ended Jun 30, 2025; vs US$2.0M inflow prior period

Cash & equivalents US$42.1M Balance as of Jun 30, 2025

Public offering size US$6.9M Gross proceeds from 14.8M units at US$0.4681

Units offered 14,800,000 units Public offering priced Jul 22, 2025

Current price $0.0649 Up 5.19% on the day; well below 52-week high $2.85

Market Reality Check

$1.35 Last Close

Volume Volume 4,976,202 is 1.63x the 20-day average of 3,048,030, indicating elevated trading interest ahead of this LOI. high

Technical Shares at $0.0649 are trading below the $0.47 200-day moving average and sit far under the $2.85 52-week high, though above the $0.0571 52-week low.

Peers on Argus

ORIS is up 5.19% while key peers like RKDA (-13.73%), HCWC (-7.28%), and FAMI (-7.75%) are down, pointing to a stock-specific reaction rather than a packaged-foods sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Jul 28	Acquisition LOI	Positive	-8.5%	Signed LOI to acquire Daohe and Minji distributors for vertical integration.
Jul 22	Dilutive offering	Negative	-65.8%	Priced $6.9M unit offering with warrants and potential share dilution.
Jul 07	Nasdaq notice	Negative	-7.1%	Nasdaq minimum bid-price non-compliance notice and 180-day remediation window.

Pattern Detected

Recent news has often been followed by downside moves, especially around financings and compliance notices, with only one divergence where positive M&A news saw a negative price reaction.

Recent Company History

Over the last six months, Oriental Rise reported weaker interim results on Nov 21, 2025 and faced a Nasdaq minimum bid-price notice on Jun 30, 2025, underscoring operational and listing pressures. A $6.9M public offering priced on Jul 22, 2025 brought growth capital but significant dilution. On Jul 28, 2025, the company signed a non-binding LOI to acquire Daohe and Minji, targeting distribution-side vertical integration. Today’s LOI adds an upstream tea producer, extending the same integration strategy across the value chain.

Market Pulse Summary

The stock moved -6.0% in the session following this news. A negative reaction despite the strategic framing would fit the pattern seen on the Jul 28, 2025 LOI, when shares fell 8.51%. The market has previously focused on dilution from the $6.9M offering and deteriorating margins rather than long-term integration narratives. Against a backdrop of weaker interim results and Nasdaq bid-price issues, investors may discount non-binding deals until concrete financial benefits emerge.

Key Terms

non-binding letter of intent financial

"today announced that it has entered into a non-binding letter of intent"

A non-binding letter of intent is a preliminary document that outlines the main terms and expectations of a proposed transaction—such as a merger, acquisition, investment or partnership—without creating a legally enforceable obligation to complete the deal. Think of it as a written handshake or shopping list: it signals serious interest and sets the framework for negotiations and due diligence, which can move markets, but it does not guarantee the transaction will happen until a final, binding agreement is signed.

vertical integration technical

"and further advance vertical integration strategy"

Vertical integration occurs when a company controls multiple stages of its production or supply chain, such as making its own products and also distributing or selling them. This can help the company reduce costs and increase control over quality and delivery. For investors, it often signals a company’s effort to become more self-sufficient and competitive in its industry.

due diligence financial

"Oriental Rise will conduct comprehensive due diligence on Daguan Tea"

Due diligence is the careful investigation and analysis someone conducts before making a decision, such as investing money or entering into an agreement. It’s like researching thoroughly before buying a used car to ensure it’s in good condition; this helps prevent surprises and makes informed choices. For investors, due diligence reduces risk by verifying details and understanding what they’re getting into.

controlling equity interest financial

"to acquire a controlling equity interest in Hubei Daguan Tea"

A controlling equity interest is an ownership stake large enough to determine a company’s direction by selecting its board, approving major deals, or setting policy—usually a majority of voting shares or a smaller block with effective voting control. It matters to investors because the controller can change strategy, cash distributions, or risk profile much like a driver steering a car; knowing who holds control helps assess governance, stability, and potential conflicts of interest.

AI-generated analysis. Not financial advice.

Proposed Transaction Expected to Enhance Upstream Supply Control, Improve Product Mix, and Further Advance Vertical Integration Strategy

NINGDE, China, Dec. 30, 2025 (GLOBE NEWSWIRE) -- Oriental Rise Holdings Limited (“Oriental Rise” or the “Company”) (NASDAQ: ORIS), an integrated tea supplier in mainland China, today announced that it has entered into a non-binding letter of intent (“LOI”) to acquire a controlling equity interest in Hubei Daguan Tea Industry Group Co., Ltd. (“Daguan Tea”), a leading tea producer and processor based in Yingshan County, Hubei Province.

The Company believes the proposed transaction is highly aligned with its long-term strategic objectives, with a focus on strengthening control over core tea raw material resources and production capacity, optimizing cost structure, and enhancing the development of higher value-added tea products. Oriental Rise will conduct comprehensive due diligence on Daguan Tea and, subject to satisfactory results, proceed with negotiations toward a definitive transaction agreement. The LOI is non-binding, and the completion of any transaction remains subject to due diligence, execution of definitive agreements, and other customary conditions.

Daguan Tea is an established, vertically integrated tea enterprise with operations spanning tea cultivation, large-scale processing, product development, and brand management. The company operates substantial self-owned and managed tea plantation resources and maintains modern, automated production facilities capable of producing a broad range of tea products, including premium teas, bulk teas, and export-grade teas. Its production platform and product portfolio demonstrate scalability and standardization potential.

Strategically located in a core tea-producing region of Hubei Province, Daguan Tea has developed long-standing capabilities in raw material sourcing, quality control, and efficient production. The company has also established export channels and possesses a foundation for further international market expansion.

If completed, the Company expects the proposed transaction to generate meaningful strategic benefits by combining Oriental Rise’s public company platform, capital market access, branding capabilities, and nationwide distribution network with Daguan Tea’s upstream resources and production strengths. Expected benefits include improved supply stability and quality control, a more favorable product mix with increased exposure to higher-margin offerings, enhanced supply-chain coordination, and improved operating leverage to support future growth initiatives.

The proposed acquisition reflects Oriental Rise’s continued execution of its vertical integration strategy. Management remains focused on selectively expanding across the tea value chain—from cultivation and processing to branding, distribution, and export—by integrating assets that demonstrate long-term strategic value and operational synergy.

“We believe that securing upstream resources and production capacity is fundamental to improving long-term competitiveness and earnings quality in the tea industry,” said Mr. Dezhi Liu, Chief Executive Officer of Oriental Rise. “Daguan Tea has built a solid foundation in tea plantation resources, scalable production, and product development. If successfully completed, this transaction would further strengthen our supply chain, enhance product differentiation, and support sustainable long-term value creation for our shareholders.”

About Oriental Rise Holdings Limited (NASDAQ: ORIS)

Oriental Rise Holding Limited is an integrated supplier of tea products in mainland China. Our major tea products include (i) primarily-processed tea consisting of white tea and black tea, and (ii) refined white tea and black tea. Our business operations are vertically integrated, covering cultivation, processing of tea leaves and the sale of tea products to tea business operators (such as wholesale distributors) and end-user retail customers in mainland China. We operate tea gardens located in Zherong County, Ningde City in Fujian Province of mainland China. For more information, visit the Company's website at https://ir.mdhtea.cn/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the expected completion, timing and size of the Offering and the intended use of the proceeds from the Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

Oriental Rise Holdings Limited
Investor Relations Department
Email: ir@mdhtea.cn

FAQ

What did Oriental Rise (ORIS) announce on December 30, 2025 about Daguan Tea?

Oriental Rise announced a non-binding LOI to acquire a controlling interest in Hubei Daguan Tea, pending due diligence and definitive agreements.

How would the proposed Daguan Tea acquisition affect ORIS supply chain?

The company expects the deal to strengthen upstream supply control and improve supply stability and quality control.

Does the LOI between ORIS and Daguan Tea guarantee a completed acquisition?

No; the LOI is non-binding and completion is subject to satisfactory due diligence, definitive agreements, and customary conditions.

What strategic benefits did ORIS cite for acquiring Daguan Tea?

Expected benefits include improved product mix toward higher-margin teas, enhanced operating leverage, and broader export and distribution capabilities.

Were any financial terms or transaction timelines disclosed for ORIS’s proposed Daguan Tea purchase?

No financial terms, purchase price, or definitive timetable were disclosed in the announcement.