Gelonghui, January 15, 丨 China Childcare Network (01736.HK) announced that on January 15, 2024, Nanjing Wanhui (an indirect wholly-owned subsidiary of the company) and Nanjing SiBac (as the seller) signed a sale agreement. According to this, the buyer conditionally agreed to buy and the seller conditionally agreed to sell shares (equivalent to the entire issued share capital of the target company Nanjing Wanhui Information Technology Co., Ltd.). The total cost was RMB 19.09 million. As of the date of the announcement, the target company was 100% owned by the seller.
After the sale is completed, the company will not have any interest in the target company, and the target company will no longer be a subsidiary of the company.
The target company is mainly engaged in providing technical support and consultancy related services to the Group. The target company, along with nine other companies, entered into a state-owned construction land concession contract with the Nanjing Municipal Bureau of Planning and Natural Resources in 2019. According to this, a plot of land use rights in Nanjing has been transferred to the target company and other companies. Following the acquisition of the right to use, the target company began construction of the property (an office building for internal use by the Group) in 2019. The main structural construction project of the property has been completed, and the property is in the post-construction stage, including the installation of utilities. The cash flow used to manage the Group's operations is currently running short.