Gelonghui, Feb. 26 | Zhuohang Holdings (01865.HK) announced that on February 26, 2024, the company and the buyer, Mr. Tan Tze Loong entered into a sales agreement. According to this, the company conditionally agreed to sell and the buyer conditionally agreed to buy the sales shares, accounting for 22% of the target company Integral Virtue Limited's shares, at a cost of 6.25 million yuan. After completion, the target company will remain a subsidiary of the company, and the company and the buyer will own 78% and 22% of the interests respectively.
The target company directly owns HSCPipeline Engineering Pte, the group's main subsidiary. 100% of Ltd.'s shares. HSC Pipeline Engineering Pte. Ltd. is mainly engaged in infrastructure pipeline construction and related engineering services, mainly serving the gas, water, telecommunications and power supply industries in Singapore.
Considering the low level of cash on hand that the Group can use, the directors believe that the net proceeds from the sale can meet the Group's capital requirements to repay the loans, thereby improving the Group's financial situation. Furthermore, by repaying loans, the Group can further reduce future financial costs and reduce financial burdens to enhance the Group's overall profitability.