Lapco Holdings (08472) has announced that on June 24, 2024 (after trading hours), the transferor Lianghao and Zhi Jin (both indirect wholly-owned subsidiaries of the company) and the transferee Huan Shi Development Co., Ltd (an independent third party) signed a vehicle purchase agreement. Accordingly, the transferors agreed to sell and the transferee agreed to purchase such vehicles for a consideration of HKD 19 million.
Lapco Holdings (08472) announced that after trading session on June 24, 2024, Lianghao Ltd. and Zhi Jin Ltd. (both are wholly-owned subsidiary companies) will transfer their special-purpose cleaning vehicles to independent third party Huan Shi Development Ltd. at a total price of HKD 19 million.
These vehicles include 163 special-purpose cleaning vehicles used for waste compression and street washing business of the Group. These vehicles are legally and beneficially owned by the transferor on the date of the vehicle purchase agreement.
The board of directors is continuously assessing the current market situation of the cleaning industry and constantly monitoring and adjusting the Group's vehicle fleet (as applicable). The board of directors believes that the sale will improve the Group's operating capital position, further enhance its liquidity, and optimize its fleet composition through continuous asset portfolio management.
The Group strives to balance the additional maintenance costs of aging vehicles with the expected revenue generation capability of its business operations. The Group will continue to monitor the market and its future operating conditions to find opportunities to maintain a fleet that is reasonably competitive, but does not rule out the possibility of selling or replacing vehicles in the future in order to enhance its operational competitiveness.