Lihua Holding Group (01346) announced that on September 12, 2023, the buyer Lever Style Limited (an indirect wholly-owned subsidiary of the Company) and the seller Tian Li Development entered into an asset acquisition agreement. The seller agreed to sell and the buyer agreed to purchase assets (assets mainly include: purchase orders; supplier contracts; inventory; and sales receivables), with a price of US$4.8 million (equivalent to about HK$37.44 million). The amount can be reduced.
An asset acquisition agreement was signed to enable the company to further expand its product portfolio in the apparel category through the acquisition of assets (involving the production of woven and knitted products, outerwear, knitted jackets, pants, shorts, tops, dresses and skirts). The Board believes that this category of process products requires a special skill set and technical knowledge.