Steedoriental (08277) announced that on October 23, 2024, its indirect wholly-owned subsidiary Hebei Jia Pin proposes to...
According to the Zhitong Finance APP, Steedoriental (08277) announced that on October 23, 2024, its indirect wholly-owned subsidiary Hebei Jia Pin intends to sell all the registered capital of Hebei Youlin Technology Co., Ltd. to Hebei Filago for a price of RMB 28.01 million.
Upon completion, the target company (as the landlord) is expected to enter into a lease agreement with the seller (as the tenant) for the continued operation of the group's business, leasing the premises at a monthly rent of RMB 0.05 million, for a period of 5 years starting from the date of the lease agreement.
It is reported that the main assets of the target company are the said properties, with a total construction area of approximately 0.17 million square meters, including: a parcel of land with land use rights, an industrial complex with a total construction area of approximately 0.17 million square meters located north of Ningjin County, Xingtai City, Hebei Province, east of Qiaocun, south of New 308 National Road, and west of the planned Xihuan Road.
The announcement stated that bank loans incurred financing costs for the company, resulting in an annual expenditure of approximately 15 million Hong Kong dollars. After completion, the group's financing costs are expected to be significantly reduced, or even completely eliminated. This strategic financial decision aligns with the current outlook of the real estate market in China and the low rental environment. The sale is aimed at maximizing these favorable conditions, effectively utilizing the property resources, and supporting the continuous operation of the group's core business activities.