The Zhitong Finance App learned that Honghai Hi-Tech Resources (00065) rose by more than 5% and rose 5.66% at press time to HK$0.56, with a turnover of HK$4.7 million.
According to the news, the company issued an announcement. On April 22, 2024, Hongyuan Global (an indirect wholly-owned subsidiary of the company, as the buyer) entered into a sales agreement with the seller. Hongyuan Global conditionally agreed to buy and the seller conditionally agreed to sell the shares for sale (equivalent to all shares of the target company, Laos Taishan Jiujiu Investment), at a cost of RMB 40 million (equivalent to about HK$43.26 million). After the acquisition is completed, the target company will become an indirect wholly-owned subsidiary of the company, and the target group's financial results will be incorporated into the group's accounts. Furthermore, the target company will continue to be an indirect wholly-owned subsidiary of the company after the subscription is completed.
According to reports, the project company holds all of the shares in the copper mine. After the shareholding change in the project company is completed, the project company will own 51% and 49% of the target company and Lao-China Mining respectively. Lao-China Mining is a company founded in Laos and will be wholly owned by an independent third party, Mr. Yu Jianmin. The conclusion of sales agreements and subscription agreements is a good opportunity for the Group to expand its business portfolio to the Southeast Asian mining industry. In addition to the Group's existing coal mining operations, it is expected to contribute to the Group's long-term growth and development. Furthermore, labor and operating costs in Laos are relatively low, which will benefit the future financial performance of copper mines in terms of cost efficiency.