Highlights

  • Oriental Rise entered a non-binding LOI to acquire control of Daguan Tea in Hubei Province
  • Proposed deal targets upstream tea resources, processing capacity, and supply-chain integration
  • Transaction remains subject to due diligence and definitive agreement execution

Oriental Rise Holdings Limited (NASDAQ:ORIS), an integrated tea supplier operating in mainland China, announced that it had entered into a non-binding letter of intent to acquire a controlling equity interest in Hubei Daguan Tea Industry Group Co., Ltd., a tea producer and processor based in Yingshan County, Hubei Province. The announcement marked the company’s latest step toward expanding its presence across the upstream segments of the tea value chain.

Under the terms outlined, Oriental Rise planned to conduct comprehensive due diligence on Daguan Tea. Any potential transaction would be subject to satisfactory due diligence results, the negotiation and execution of definitive agreements, and other customary closing conditions. The company noted that the LOI does not create binding obligations, and there is no assurance that a definitive agreement will be reached.

Profile of Daguan Tea

Daguan Tea is described as a vertically integrated tea enterprise with operations covering tea cultivation, large-scale processing, product development, and brand management. The company operates self-owned and managed tea plantations and maintains automated production facilities capable of producing premium teas, bulk teas, and export-grade products. Its operational footprint is located in a core tea-producing region of Hubei Province, where it has developed established practices in raw material sourcing and quality control.

In addition to domestic operations, Daguan Tea has developed export channels that provide a base for potential international market activity. The company’s production platform was described as scalable and suited to standardized output across multiple tea categories.

Strategic Rationale and Integration Focus

Oriental Rise stated that the proposed acquisition aligned with its longer-term strategy of strengthening control over raw material resources and production capacity while improving supply-chain coordination. If completed, the transaction would combine Oriental Rise’s public company platform, branding capabilities, and nationwide distribution network with Daguan Tea’s upstream assets and processing infrastructure.

The company indicated that anticipated outcomes included enhanced supply stability, tighter quality oversight, and an optimized product mix with greater exposure to higher value-added offerings. Management also referenced operating leverage and coordination efficiencies as part of its broader vertical integration approach.

Management Commentary and Market Context

“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.”

ORIS closed at USD 1.22 on December 30, 2025.