Huaxi Holdings (01689) announced that on November 3, 2023, the seller (Guangdong Xinda Testing Technology Co., Ltd., an indirect subsidiary of the company) and the buyer (Dongfang Huaxin, Zhibo Shengshi, and Yuantong Zhixin) entered into a sales agreement. According to this, the seller has agreed to sell and the buyer has agreed to buy sales rights, with a total nominal cost of RMB 3.
The sales rights are equivalent to 48% of the shares of the target company (Shengshi Hengrui (Guangdong) Technology Co., Ltd.), and will be transferred 35% to Oriental Huaxin, 8% to Zhibo Shengshi, and 5% to Yuantong Zhixin, respectively.
According to reports, Shengshi Hengrui (Guangdong) Technology Co., Ltd. is mainly engaged in R&D and sales of technical products. The registered capital of the target company is RMB 40 million. As of the date of this announcement, the registered capital has not yet been fully paid. As of September 30, 2023, the target company's net unaudited liabilities were approximately RMB 11,000. The target company lost approximately RMB 11,000 before income tax and after income tax for the period from the date of its establishment until September 30, 2023.