According to Zhitong Financial App, Tomson Group (00258) announced that on September 22, 2023, Aoyong Co., Ltd., an indirect wholly-owned subsidiary of the company, intends to sell 100% of its shares in Shanghai City to China Haihua Group Co., Ltd. and Ustar Financial Development Holding Group Limited at a cost of about RMB 404 million. The company is expected to generate sales revenue of approximately HK$54.5 million.
According to reports, Shanghai City is mainly engaged in property development and has legal ownership rights to this property. The property includes an 8-storey management building and 4 industrial buildings with a height of 7 to 10 floors. It is located at No. 381 and 383, Futexi Road, No. 27 and 29, Huashen Road, and No. 358, Fute North Road, Pudong District, Shanghai, China. The total construction area is about 109,400 square meters.
The announcement stated that the property is the group's only industrial property project and is considered a non-core project. The property is far from the Group's other major property projects in the Pudong district of Shanghai, China, and it is difficult to generate synergies in operation. The sale will enable the Group to monetize the investment value accumulated over a period of time since investing in the property, and is a good opportunity to enhance the Group's current financial flexibility. The sale will further enhance the Group's cash flow and financial position.