Oriental Rise Holdings shares jumped 47.54% in after-hours trading on December 30th after the company announced a non-binding letter of intent to acquire a controlling equity interest in Hubei Daguan Tea Industry Group. The surge reflects investor enthusiasm for the proposed deal, which aims to secure upstream tea leaf resources and enhance supply-chain control. Despite this spike, shares remain close to their 52-week low, and the stock has slumped 95.7% over the past year, underscoring lingering skepticism about the company’s turnaround prospects.

Under the LOI, Oriental Rise would combine its nationwide distribution network and capital-market platform with Daguan Tea’s vertically integrated operations in Yingshan County, Hubei Province. Daguan Tea cultivates and processes tea on self-owned plantations and operates modern automated facilities capable of producing premium, bulk and export-grade teas. Management forecasts improved supply stability, cost optimization and a higher-margin product mix, while leveraging enhanced operating leverage to support future growth initiatives. Completion remains subject to due diligence, definitive agreements and customary conditions.

Oriental Rise will conduct comprehensive due diligence on Daguan Tea before negotiating a definitive agreement. The LOI is non-binding, and the transaction depends on satisfactory review of production capacity, asset valuations and export channel performance. Investors should weigh potential synergies against execution risks, including integration challenges, regulatory approvals and fluctuations in global tea demand. Management reiterates its commitment to vertical integration across cultivation, processing, branding and distribution as it seeks to reverse the 95.7% decline in share value over 12 months.