Future World Holdings (00572) issued an announcement. On March 22, 2024, the company and Mr. Le Langwei agreed to transfer...
According to the Zhitong Finance App, Future World Holdings (00572) issued an announcement. On March 22, 2024, the company signed a transfer agreement with Mr. Lai. According to this, the company conditionally agreed to the transfer, and Mr. Lai conditionally agreed to accept the transfer of receivables and share charges at a cost of HK$657.457 million. Upon completion, Mr. Lai will have all rights, title and interest in the accounts receivable and share charges.
According to reports, the accounts receivable are as follows:
1. First receivable
On November 3, 2022, World Finance concluded the Cheung's Sale Agreement and the Ouyang's Sales Agreement, transferring 17.823 million shares of Shankao's issued shares to Mr. Cheung at a cost of HK$274.474 million and 11.882 million shares of Shankao's issued shares to Mr. Ouyang at a cost of HK$18.2983 million.
On March 2, 2023, Mr. Zhang and Mr. Ouyang entered into separate Zhang's share charges and Ouyang's share charges with World Finance. Based on this, Mr. Zhang and Mr. Ouyang respectively agreed to charge 17.823 million shares and 11.882 million shares of Shangao's issued shares to World Finance as a guarantee for their respective payment obligations under the Zhang's sales agreement and the Ouyang's sales agreement.
On March 22, 2024, World Finance entered into a GF transfer agreement with the company. World Finance transferred and the company accepted the transfer of the first receivables and share charges.
2. Second installment of accounts receivable
On January 10, 2023, the Company entered into a transfer agreement with World SincereWS to transfer the outstanding principal amount of HK$21.06 million and accrued interest receivables due and payable by Latop International to the Company on June 29, 2022 at the cost of HK$20 million.
On March 22, 2024, the Company entered into a termination agreement with World Sincere. The Company and World Sincere voluntarily terminated, cancelled and cancelled the WS transfer agreement at a cost of HK$20 million, and WorldSincere would be refunded to the Company.
According to the announcement, in view of the long time it took to collect the receivables, Mr. Lai, the company's executive director and major shareholder, agreed to transfer the rights, ownership and interests of the accounts receivable and share charges at a cost of HK$657.45 million. Assignment matters provide the Group with a one-time solution to recover outstanding amounts within a predictable time frame, thereby minimizing the uncertainty and credit risk associated with accounts receivable.