Gelonghui, March 25 | Li Jing Pacific (00575.HK) announced that on March 24, 2024, the company's indirect wholly-owned subsidiary Amerinvest Coal Industry Holding Company Limited (as the seller) entered into a sales agreement with Qujing Heijin Energy Co., Ltd. (as the buyer). According to this, the seller conditionally agreed to sell and the buyer conditionally agreed to buy 25% of the seller's shares in Qujing Dawei Coking Gas Supply Co., Ltd. (target company), after deducting any taxes in China Afterwards, the cost was RMB 8,000,000.
The target company is a Sino-foreign cooperative joint venture registered in China. Its main business is the production, processing and sale of coking coal and coal chemicals.
Prior to the sale, the company's subsidiary held 25% of the target company's shares since 2007. After a series of depreciation, the company currently believes that the seller and its interests in the target company have little value. Furthermore, as conditions in China's real estate and steel markets continue to deteriorate, the board of directors understands and predicts that the coking coal market will continue to be sluggish because it depends on the needs of steel manufacturers, which in turn depend on the construction industry. The board of directors believes that the target company will continue to generate losses until China's economic conditions improve, especially in the construction industry.