Gelonghui August 3?Su Xin Services (02152.HK) announced the proposed sale of 3.167% stake in Suzhou Huirong Business Travel Development.On the date of the announcement, the public bidding procedure of Suzhou Trading Center has been completed. The buyer is a direct non-wholly-owned subsidiary of the company's controlling shareholder, Su Haoxin Company, and is the winning bidder for the sale of equity, with a final bid price of RMB 60.3025 million.
On August 3, 2023, the seller (a wholly owned subsidiary of the company) entered into the agreement with the buyer, whereby the seller conditionally agreed to sell and the buyer conditionally agreed to purchase 3.167% of the shares (i.e. sales shares) of the target company at the final bid price.
Since the Group invested in the target company in 2012, the Group has not received any dividend from the target company. In 2022, the target company even recorded a significant operating loss due to compliance with the local government's rent reduction policy in response to the COVID-19 epidemic. In view of the past performance of the target company and the return on investment related to the group's investment in the target company, the group intends to recover its investment in the target company through the proposed sale and redeploy its resources to the main business of the development group