PACIFIC LEGEND (08547) issued an announcement. The company's previous announcement revealed that the Group had...
Zhitong Finance App News, Pacific Legend (08547) issued an announcement. The company's previous announcement revealed that the Group had closed its only store in Shanghai in 2022, and the real estate industry in mainland China is still full of challenges. The directors believe this will continue to have an impact on the Group's retail business plans in mainland China.
After considering the recent decline in the financial performance of the sale group; the sale group obtained unaudited net consolidated liabilities as of December 31, 2023; the sale of the Group's financial performance is unlikely to improve in the short term; the cost of the sale of the Group's continued operations in China; and the company's ability to bring better returns to shareholders by concentrating resources on other businesses, the company decided to terminate its business operations in China. In this regard, on March 13, 2024, the seller (a wholly-owned subsidiary of the company) entered into an agreement with the buyer, Mr. Tsang, Ka Wing Hiram, to sell the entire issued share capital of the sale company Deep Blue Living Limited, while the selling company held two subsidiaries mainly engaged in the sale of furniture and home accessories in China.
After the sale was completed, the Group no longer held any interest in the selling company, and the selling group was no longer a subsidiary of the company, and its financial results were no longer comprehensively recorded in the company's consolidated financial statements. The Group will terminate its China operations accordingly.
The decision to terminate business operations in China was reached after a thorough and careful assessment of the current market situation in China and consideration of the Group's current business direction. This move allows the Group to focus on other profitable businesses to make better use of resources, which is beneficial to the company and shareholders as a whole.