CH AGRI-PROD EX (00149) and WANG ON GROUP (01222) issued an announcement,...
According to the Zhitung Finance APP, CH AGRI-PROD EX (00149) and WANG ON GROUP (01222) announced that on January 2, 2025 (after trading hours), Luoyang Hongjin (a wholly-owned subsidiary of CH AGRI-PROD EX) signed a sale and leaseback agreement and Consulting Services agreement with Haier for the sale price of 51 million yuan. The leased assets include several construction projects in Luoyang related to greenhouses and various equipment owned by Luoyang Hongjin.
Through the establishment of the sale and leaseback arrangement, WANG ON GROUP and CH AGRI-PROD EX will be able to manage their operating capital more effectively, as the sale price will be paid by Haier, and cash flow can be managed more effectively through subsequent leasing arrangements. The operations of WANG ON GROUP and CH AGRI-PROD EX will not be adversely affected by the sale of the leased assets, as these assets will be immediately leased back to Luoyang Hongjin.