Upace Tech (01725) announced that on November 22, 2024, the company's wholly-owned subsidiary, Huizhou Hongsheng...
ZHongshan Technology decided to sell 100% of the share capital of Huizhou Hengchangsheng Technology Co., Ltd. to Huizhou Longming Technology Co., Ltd. for 27.1 million yuan on November 22, 2024.
The target company's main business is property holding, with its main asset being the target property. The target property is located at 11 Qingli Second Road, Shuikou Street, Huicheng District, Huizhou City, Guangdong Province, China. The target property consists of 4 buildings, including a 7-story production workshop, a 9-story dormitory, and two single-story guard rooms, with a total construction area of approximately 45,255 square meters. Of which, about 42,500 square meters are used by the group as a production site for its EMS business, and about 2,600 square meters are leased to independent third parties.
The company management believes that the target property is not fully utilized for production. In the long run, investing more financial resources to hold such property is not in the best interest of the company. The sale allows the group to liquidate its property investment, transfer the target company's bank borrowing of approximately 63.9 million yuan to the buyer, and reduce the group's financing cost burden.
After the completion of the agreement, the seller will enter into a lease agreement with the buyer to lease approximately 15,000 square meters of the target property for production and maintain its production activities at the current location for a period of 12 months. The lease will automatically renew for further periods through a three-month advance notice. Some production orders may be transferred to other production plants of the group or independent subcontractors.
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