Gelonghui 10 October, Yongjia Group (03322.HK) announcement, on October 10, 2023, the seller Jiebai Trading (Hangzhou) Co., Ltd. (the company's indirect wholly-owned subsidiary)With the buyer Van Shang clothing (Shanghai)The limited company entered into a sale agreement under which the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the target assets for a total consideration of approximately RMB 104 million.
Target assets: (1) inventory: Champion fashion brand clothing products purchased by the seller or its associates at the completion date but not yet sold or reserved for customers; and (2) franchised store assets: leases of 69 Champion stores operated by the seller or its associates, together with interior decoration, decoration, equipment and props (except store staff and inventory).
The Board considers that the disposal is an opportunity for the Group to put an end to the losses in its Champion business in the PRC and to clear its old inventory. In addition, the net proceeds from the sale will bring cash inflows to the Group and improve and strengthen the Group's financial position. The seller will terminate the operation of the Champion franchise upon completion.