On December 27, Glonghui announced that DIWANG IND H (01950.HK) will enter into a sale agreement on December 27, 2024, where the seller (the company) conditionally agrees to sell and the buyer (BlueOcean Investment (Global) Ltd) conditionally agrees to purchase the shares being sold (which account for 25% of the issued share capital of the target company Darkblue Investment Ltd).
The target company is a limited company registered under the laws of the British Virgin Islands and, as of the date of this announcement, is a wholly-owned subsidiary of the company. The company mainly engages in investment holding business, while its indirect wholly-owned subsidiary in Zhejiang, Shenlan, primarily focuses on the manufacturing and sales of artificial leather Chemicals.
It is believed that entering into the sale agreement and the related sale matters will (i) enhance the group's sales, as Cao will assist in developing the sales and foreign trade market for artificial leather; and (ii) provide the group with the opportunity to sell a portion of its interests in the target company to better utilize its management and financial resources, maintain its existing operations in various businesses, and bring immediate Cash inflow to the group. Therefore, this will improve the group's liquidity, increase working capital, and strengthen its overall financial condition.
