Glonghui, May 31 | Nanhua Finance (00619.HK) announced that, as of May 31, 2024, seller Media Bonus Limited (an indirect wholly-owned subsidiary of the company), buyer Four Seas Travel Group (BVI) Limited and such target companies (target company Capital Publishing Limited and target company Capital Publishing Management Limited) ) The agreement was concluded, according to which the seller agreed to sell and the buyer agreed to acquire the sales shares (equivalent to the total issued share capital of such target companies) at a total cost of HK$1.00. Upon completion, these target companies will no longer be group subsidiaries. As a result, the respective financial results of these target companies will not be consolidated into the Group's financial statements thereafter.
As of the date of this announcement, Target Company A is a limited company incorporated in Hong Kong. It is an indirect wholly-owned subsidiary of the company. The seller holds 100% direct and indirect interest in its total issued share capital and is a company directly operating the business. As of the date of this announcement, Target Company B is a company incorporated as a limited company in Hong Kong. It is an indirect wholly-owned subsidiary of the company. The seller holds 100% direct and indirect interest in its total issued share capital, and is a company used to provide and maintain employment for all employees to perform various duties in support of this business.
“This business” refers to media publishing and financial PR services (in particular, publishing and distributing a magazine called “Capital Capital Magazine CEO Capital Talented Entrepreneurs”), media advertising and marketing activities.
Although these target companies changed their strategies and upgraded their business model from a traditional printing model to a digital model, their business performance over the past few years has not been able to achieve their goals. As a result of financial and political factors, the overall economy of Hong Kong has not fully recovered from the turmoil of the pandemic, which has caused some major customers of these target companies to become more conservative in terms of PR activities and advertising expenses and settlement of outstanding receivables, so the business has been greatly affected.
In order to continue the company's core business in financial services, such as securities and futures brokerage, securities advisory services, corporate finance advisory services, asset management services, insurance brokerage and all ancillary services, the Board believes that the sale may cause the Group to focus its resources on financial services with better prospects. In particular, the Hong Kong Government promotes various policies and plans to attract Chinese citizens to travel, settle and invest in Hong Kong.