Gelonghui, March 24, 丨 Chenming Paper (01812.HK) announced that on March 22, 2024, the company and Yujing Hotel and Guangyuan Real Estate, a non-wholly-owned subsidiary of the company, entered into an equity and debt transfer agreement. Based on this, the company plans to sell target shares (accounting for 90.05% of the total shares of Grand View Hotel) and target claims to Guangyuan Real Estate at a total cost of RMB 357 million.
After the sale is completed, the company will no longer have any interest in Grand View Hotel, and Grand View Hotel will no longer be a subsidiary of the Company. As a result, Grand View Hotel's financial results will no longer be consolidated into the Group's consolidated financial statements.
Royal View Hotel is a limited liability company established in China. Its business scope is: licensing projects: catering services; accommodation services; barber services; lifestyle and beauty services; high-risk sports (swimming); bathing services; dance and entertainment activities; alcohol management; technology import and export; import and export of goods. (Projects requiring approval according to law can only be carried out after approval by relevant departments. Specific business projects are subject to the relevant department's approval documents or permits) General projects: conference and exhibition services; fitness and leisure activities; clothing and apparel wholesale; clothing and apparel retail; laundry services; gift and flower sales.
The sale was based on the company's need to further focus on the development strategy of the main pulp and paper business. The divestment of non-main assets helps the company to continuously optimize its asset structure and reduce the operating costs of the company's non-main assets in order to increase cash inflows, better focus on developing the main business, enhance the company's profitability, and promote the high-quality development of the Group's assets.