SHEEN TAI plans to sell 100% equity interest in Jiangsu Jingerrun Technology for RMB 50 million
SHEEN TAI plans to sell 100% equity interest in Jiangsu Jingerrun Technology Co., Ltd., a wholly-owned subsidiary of Leading Feiyu Technology (Shenzhen) Co., Ltd., for RMB 50 million. The buyer is Huai'an Daxing Internet of Things Technology Co., Ltd. This decision is based on the financial performance and market prospects evaluation of the target company. The board of directors believes that the sale can improve cash flow and liquidity position for future development and resource reallocation
According to the news from Zhitong Finance and Economics APP, Sheen Tai Holdings (01335) announced that on August 20, 2024, the company's indirectly wholly-owned subsidiary, Leading Feiyu Technology (Shenzhen) Co., Ltd., plans to sell 100% equity interest in Jiangsu Jingerun Technology Co., Ltd. to Huai'an Daxing Internet of Things Technology Co., Ltd. for a consideration of 50 million RMB.
It is reported that the target company is mainly engaged in the business of printing cigarette film.
Taking into account the financial performance of the target company, and after reviewing its business (including but not limited to the expected continuous decrease in the number of cigarette smokers and the expected emergence of electronic cigarettes leading to a decrease in the market share of traditional cigarettes) and operational situation (including the target company's losses in the past two years), the board of directors believes that the group is suitable to continue with the sale. If the sale is completed, it will strengthen the group's cash flow, allow the group to improve its working capital position, and enable the group to reallocate its resources to respond to future developments
