Omori Holdings (01580) issued an announcement. On December 21, 2023 (after the trading period), the seller Omori (...
According to the Zhitong Finance App, Omori Holdings (01580) issued an announcement. On December 21, 2023 (after the trading period), the seller Omori (Hong Kong) Holdings Co., Ltd. (an indirect wholly-owned subsidiary of the company), the buyer Shandong Fulian Commercial Co., Ltd., the target company, Omori (Heze) Biomass Energy Co., Ltd. and Meison (Shandong) entered into a sale agreement. According to this, the buyer has agreed to purchase all of the issued share capital of the target company from the seller at a cost of 10,000 yuan, and repay such debt by providing the target company with a loan amount of RMB 21 million Assume such debts. The target company's main asset is this property.
The property includes the land and buildings built on it. The land is for industrial use and is located in Omori Industrial Park, Chengwu County Development Zone, Heze City, Shandong Province, China. The total area of the land is about 352,000 square meters, and the properties on the land include a number of buildings, structures and supporting facilities, with a total construction area of 24,000 square meters. The target company has signed a lease agreement with Heze Zhongzhonghe to lease the property. For the 15 months ended March 31, 2023, the property generated rental income of approximately RMB 1.7 million, accounting for about 2.6% of total revenue.
According to the interim results, the Group obtained net current liabilities of approximately RMB 38.7 million, of which the Group's total current loans were approximately RMB 36.8 million, while cash and cash equivalents were only about RMB 1.3 million. In view of the financial situation and the default on these loans, the Group intends to repay these loans through the sale of the property. In view of the time required to complete the auction and the uncertainty of the final auction price under recent property and financial market conditions, the directors believed that the sale was more beneficial because the sale was more certain about the group's ability to obtain the capital required to repay such debts in a relatively short period of time.