Gelonghui, December 29, 丨 Baoji Health (01246.HK) announced that on December 29, 2023, the company and the buyer agreed to sell the target shares and the buyer agreed to buy the target shares, which is equivalent to 51% of the issued share capital of the target company Zhenxuan Co., Ltd., at a cost of HK$29.46 million.
The Hong Kong subsidiary is a limited company incorporated in Hong Kong. It mainly engages in foundation business in Hong Kong as a foundation subcontractor. A Hong Kong subsidiary is a direct wholly-owned subsidiary of the target company. Prior to completion, the target company held 51% of the company's interest and the buyer held 49% of the interest.
Considering the current market sentiment, as well as the continued loss performance and minimal operating scale of the relevant divisions, the company believes that the company's foundation piling division will not turn a loss into a profit in the short to medium term, and that the sale will be in the interests of the company and shareholders, so that the Group can invest more financial resources in other well-performing business segments and potential business opportunities. Furthermore, the sale provided the Group with a valuable opportunity to fully repay outstanding loan amounts by offsetting without any cash expenses, reduce the Group's debt and related financial costs, and improve its overall financial situation.