Asia Fruit Industry (00073) issued an announcement regarding Cheer Kind, a wholly-owned subsidiary of the company, and a joint venture...
Zhitong Finance App News, Asia Fruit Industry (00073) issued an announcement on matters relating to the conclusion of a joint venture agreement between Cheer Kind, a wholly-owned subsidiary of the company, and a joint venture partner. According to the joint venture agreement, the joint venture company will engage in used car brokerage and trading business in China.
Due to internal reasons and the joint venture's initial plans have not yet been implemented, the joint venture partners decided to terminate the proposed activities under the joint venture agreement. Cheer Kind and the joint venture partner entered into a termination agreement on April 18, 2024. The two parties mutually agreed to terminate the joint venture agreement (termination) and release and cancel their respective responsibilities, effective from the date of termination of the agreement.
As of the date of this announcement, apart from the initial establishment costs and professional expenses arising from the relevant joint venture agreement and the establishment of the joint venture, the company did not incur any other significant capital commitments or expenses relating to the joint venture agreement. In accordance with the termination agreement, Cheer Kind and the joint venture partner confirm that all rights and responsibilities under the joint venture agreement have been terminated. As of the date of this announcement, the joint venture has not commenced business operations, entered into any contracts or incurred any external liabilities.
The Board believes that the termination will not have any significant adverse impact on the Group's financial position and operations.