Zhitong Financial APP News, Feinion Holdings (08480) announced that on September 19, 2023, the company intends to sell the entire issued share capital of Menade Holdings Group Co., Ltd. to Zhaofu Co., Ltd., for a consideration of HK $15 million.
As at the date of this announcement, the Sale Company holds the entire issued share capital of Menade Technology (a limited company incorporated in Hong Kong which is mainly engaged in the trading and sale of polyvinyl chloride and other plastic products) and virtue (a limited company incorporated in Hong Kong which is mainly engaged in investment holding). Menade Technology and Virtue directly hold 90% and 10% of the registered capital of Menade in Jiangmen respectively. Jiangmen Menade is a limited liability company established in China, mainly engaged in the production and sales of PVC and other plastic products.
Taking into account the adverse and uncertain market conditions and the continuing losses of the disposal Group, the Board is of the view that the disposal will prevent the Group from suffering further losses and cash outflows as a result of its underperforming PVC and other plastic products business. The Board also believes that the disposal provides a good opportunity for the Group to concentrate its resources on profitability and ╱ or other business segments with relatively high growth potential, which is conducive to the Group's long-term growth and development. In addition, the sale is in line with the Group's strategy of streamlining operations and selling low-profit businesses in order to reduce operating costs and improve its financial position. The Group intends to use the proceeds from the sale as supplementary working capital.