Gelonghui, January 12, 丨 Northeast Electric (00042.HK) announced that on January 12, 2024, the transferor Hainan Yitang (an indirect non-wholly-owned subsidiary of the company) signed an equity transfer agreement with the transferee Shanghai Taisheng. According to this, the transferor agreed to buy 30% of the shares in the joint venture Chongqing Hotel (that is, all shares held by the group in the joint venture) at a cost of RMB 9.1 million.
The sale of Chongqing Hotel shares will help the Group to revitalize its assets and integrate resources, supplement its liquidity needs, and further enhance the Group's ability to withstand risks and operate sustainably.
It is proposed to sell 30% of its shares and the Group will no longer have any interest in the business operated by the joint venture. The net proceeds received after the completion of the sale also helped to increase the Group's cash flow.