Zhitong Finance App News, Haotian International Construction Investment (01341) and Xinming Life Technology (00474) jointly announced that on June 23, 2022, the seller (an indirect wholly-owned subsidiary of Haotian International Construction Investment and an indirect non-wholly-owned subsidiary of Xinming Life Technology) entered into an agreement with the buyer Rongli Investment. The seller agreed to sell and the buyer agreed to acquire the sales shares (equivalent to 49% of the total share capital of TBI (a joint company issued by Xinming Life Technology and Haotian International Construction Investment). According to the terms and conditions of the agreement, the total cost was HK$44 million.
The director of Xinming Life Technology and the director of Haotian International Construction Investment believes that the sale is a good opportunity for Xinming Life Technology Group and Haotian International Construction Investment Group to monetize their investment. Through the sale, Xinming Life Technology Group and Haotian International Construction Investment Group will be able to enhance their cash flow, improve their working capital situation, and reallocate their financial resources for the future development of Xinming Life Technology Group and Haotian International Construction Investment Group.
Xinming Life Technology Group and Haotian International Construction Investment Group expect to receive about HK$44 million in total and net proceeds from the sale after deducting all costs and expenses. Xinming Life Technology Group and Haotian International Construction Investment Group plan to use the net proceeds as working capital. Considering the reasons and benefits of the sale to Xinming Life Technology Group and Haotian International Construction Investment Group, Xinming Life Technology's board of directors and Haotian International Construction Investment Board believe that the terms of the agreement, including the total cost agreed upon by the two parties after fair negotiations, are fair and reasonable, and in line with the interests of Xinming Life Technology, Xinming Life Technology shareholders, Haotian International Construction Investment and Haotian International Construction Investment.