Gelonghui, March 22, 丨 Hengyu Group (02448.HK) announced that on March 22, 2024, Space Construction (BVI) Limited (a wholly-owned subsidiary of the company, as the seller) entered into a sale agreement with the buyer. According to this, the seller has agreed to sell and the buyer has agreed to buy the sale shares (66 million shares of Hengyu Financial Holdings) at a cost of HK$4.6 million.
Hengyu Financial Holdings is a holding company of its subsidiaries. It is mainly engaged in providing financial services and holds licences to conduct Type 1 (trading in securities), Class 4 (advising on securities), Class 6 (advising on institutional financing) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance.
The Group will use the proceeds from the sale to repay its debts. The Group's leverage ratio will be effectively reduced, while its financial expenses and financing costs will be effectively reduced, which is conducive to enhancing the Group's competitiveness and sustainable and healthy development. Completion will bring more capital to the Group, provide a better balance and liability structure, increase future financing capabilities, and immediately reduce the Group's financial risk.