Xinhuo Technology Holdings (01611) announced that the sale of HBTPower (BVI) was completed on 20...
Zhitong Finance App News, Xinhuo Technology Holdings (01611) announced that the sale of HBTPower (BVI) was completed on January 11, 2024, the sale of New Huo Solutions was completed on February 9, 2024, and the sale of HBTPower (US) was completed on March 12, 2024. Upon completion of the sale, (i) the Group expects to confirm unaudited income of approximately HK$4.5 million, namely the consolidated cost of approximately HK$255 million, the net asset value of the Group due to the target company as at 31 March 2023 of approximately HK$6.9 million, and the total allocation of debt to be sold of approximately HK$246 million after deducting all estimated costs and expenses relating to the sale of approximately HK$650,000. Actual gains or losses relating to the sale will be assessed upon completion and subject to review and review by the Company's auditors; and (ii) based on the Company's financial position as of September 30, 2023, the total assets of the Group will be reduced by approximately HK$749 million to HK$478 million, and consideration has been given to share subscriptions completed on October 10, 2023, while total liabilities will be reduced from HK$535 million to HK$225 million.
Once the sale is completed, the target company will no longer be a subsidiary of the company. As a result, the financial results of each target company will no longer be consolidated into the company's consolidated financial statements. After deducting administrative and external expenses, the net proceeds from the sale are estimated at approximately HK$257 million. The company plans to use the net proceeds of the sale to settle the Group's liabilities due and to the buyer by means of offsetting, and no cash proceeds will be generated after the sale is completed.