Li Jiande Group (08455) issued an announcement. On February 7, 2024, the seller Jingtian Group Co., Ltd. (Company...
According to Zhitong Finance App, Li Jiande Group (08455) issued an announcement. On February 7, 2024, the seller Jingtian Group Co., Ltd. (a direct wholly-owned subsidiary of the company) signed the agreement with the buyer Chen Lishan. The seller agreed to sell and the buyer agreed to buy the shares to be sold (that is, the entire issued share capital of the target company Golden Catch Group Limited) at a cost of HK$1.05 million. As of the date of this announcement, the main asset held by the target group was Hang Seng Life Insurance. Upon completion, the company will no longer own any interest in the target company and the target group will no longer be a subsidiary of the company. Therefore, upon completion, the assets, liabilities and financial results of the target group will no longer be consolidated into the company's consolidated financial statements.
According to reports, the net proceeds from the sale are approximately HK$1.05 million, which will be used as the Group's general working capital. Based on (including) costs and the target group's unaudited net asset value of approximately HK$1.046 million on 31 December 2023, the Group currently expects to earn approximately HK$4,000 from the sale upon completion.
The announcement stated that the Group's financial performance in recent years has been poor due to fierce market competition in the industry and high interest rates in the market environment. In view of the anticipated increasingly difficult operating environment and the uncertainty of how long the high interest rate situation will continue, the Board believes that the sale is a good opportunity for the Group to cut costs and improve working capital and financial conditions to better allocate its resources to seek other business opportunities.