Hejing Taifu Group (01813) issued an announcement. On May 13, 2024, the transferor (the company indirectly wholly owned...
According to Zhitong Finance App, Hejing Taifu Group (01813) announced that on May 13, 2024, the transferor (an indirect wholly-owned subsidiary of the company) intends to sell 100% of the shares of the target company (Hangzhou Xilan Hotel Management Co., Ltd.) to the transferee (Science City (Guangzhou) Development Group Co., Ltd.), with a total transaction consideration of RMB 230 million.
In the current challenging Chinese real estate market, the sale helped the Group withdraw from the target company and allow the Group to concentrate its resources and manpower on its core projects in major Chinese cities. Using the Group's financial lease debt to repay transaction consideration will also reduce the Group's overall outstanding debt balance. Since the full amount of the transaction consideration will be entrusted to the transferee to Science City Lease to settle the Group's financial lease debt, the Group will not receive cash.