According to the Zhitong Finance App, Century Construction (00079) announced that on July 21, 2023, the seller Century Construction Property (an indirect wholly-owned subsidiary of the company) and the buyer, Mr. Yang Da, signed the agreement. The seller conditionally agreed to the sale and the buyer conditionally agreed to buy the shares for sale (that is, the sale of all issued shares invested by the company Xuhong) and the transfer of shareholders' accounts at a cost of HK$8.3 million.
The sales company is an indirect wholly-owned subsidiary of the company, mainly engaged in property investment business in Hong Kong, China, and owns a residential property in Taikoo Shing. After completing the transaction, the seller will no longer hold any interest in the selling company, and the selling company will no longer be a subsidiary of the company, and its financial results will no longer be consolidated into the group's financial statements.
The sole asset of the sale of the company was a residential property located in Taikoo Shing. The overall price of the property in Taikoo Shing has dropped by more than 9% since the beginning of 2023. Some analysts said that the first half of 2023 is in a high interest rate environment. Considering the possibility that the Fed will raise interest rates further and its subsequent impact on local mortgage interest rates, it is estimated that the second-hand real estate market will be under pressure until next year. Since the beginning of the year, high interest rates have reduced transaction volume by nearly half. Coupled with competition from newly completed residential housing estates launched from time to time, it is expected to put further pressure on the prices of second-hand residential properties.
In view of the above situation, the directors consider it appropriate to sell their interests in the selling company at a cost of about 58% higher than the initial cost of purchasing the property in 2010, and the directors also believe that the terms of the agreement are fair and reasonable, and that the sale matters are in the overall interests of the company and shareholders.