Harbour Equine (08377.HK) announced on October 2, 2024, that the company entered into a sales and purchase agreement with Trillion Mind Limited as the seller and buyer, respectively. According to this, the seller conditionally agrees to sell and the buyer conditionally agrees to purchase the sales shares, namely all the issued share capital of the company Strat Tech Holdings Limited, for a total consideration of 1 million Hong Kong dollars.
As of the date of this announcement, the selling company is wholly owned by the seller. Upon completion, the selling company will no longer be a subsidiary of the company, and the financial information of the selling group will no longer be consolidated into the group's consolidated financial statements.
The selling group is mainly engaged in the production and sale of sewing threads and various garment accessories. The sale is considered a strategic divestment of the group's investments and realization of opportunities in selling group investments. The sale can reduce any potential further losses from sewing threads and garment business and allocate time and resources to more profitable core divisions. The company plans to use the net proceeds from the sale to strengthen the group's cash flow and general operating funds. The board of directors believes that the sale will not have a significant adverse impact on the group's other core operations and the group's financial condition will improve after completion.
