HSSP INTL (03626) issued an announcement. On January 22, 2024, the seller Hang Seng (Zhaobao) Printing (a wholly-owned subsidiary of the company) and the buyer Xinsmart Printing entered into a sales agreement relating to the sale of assets (offset presses owned by the seller in connection with its printing production business) at a cost of HK$4.08 million.
The assets were acquired for the year ended June 30, 2014 to expand the Group's printing production capacity. However, due to geopolitical tension and slowing growth in developed economies, the Group's printing customers are cautious about placing orders. As a result, all assets have yet to be used. The Board of Directors believes that the current sale should provide a good opportunity for the Group to realize its assets and reduce the Group's maintenance and storage costs. In addition, the net proceeds from the sale of approximately HK$4.03 million will enhance the Group's working capital and strengthen the Group's financial position. Therefore, the board of directors believes that the terms of the sale are fair and reasonable, and that the sale matters conform to the overall interests of the company and the company's shareholders.