FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. It is expected that the Group will record a net gain of approximately HK$116 million from the Disposal, taking into account, among other things, the Consideration, the book value of the Property of approximately HK$5 million and the estimated expenses in connection with the Disposal. The actual amount of gain or loss as a result of the Disposal to be recorded by the Company will be subject to the review and final audit by the auditor of the Company. The Group expects to receive net proceeds of approximately HK$121 million from the Disposal. The Group currently intends to use the proceeds as general working capital and partial repayment of bank loans of the Group.
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. As at the date of this announcement, the Target Company is a 55% owned subsidiary of the Company. Upon completion of the Disposal, the Company will not hold any interests in the Target Company and the Target Company will cease to be a subsidiary of the Company. For illustrative purpose, the Group is expected to incur a loss of approximately RMB6.1 million, which is calculated based on the sum of the GZYJ Consideration of RMB27.5 million, the repayment of the GZYJ Shareholder’s Loan of approximately RMB93.0 million and the dividend of approximately RMB40.0 million to be received by Guangzhou Yu Jun from the Target Company, deducted by (i) the Target Company’s unaudited net assets attributable to the Company of approximately RMB47.7 million as at 31 December 2013; (ii) the finance costs capitalised at the corporate level as project development cost of the Properties of the Target Company of approximately RMB24.9 million (after netting of site expenses incurred by Guangzhou Yu Jun and reimbursed by the Target Company of approximately RMB1.2 million up to 31 December 2013);
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. Upon Completion, the Target Company will cease to be consolidated in the accounts of the Group. With reference to the net assets value of the Target Company of approximately RMB33.5 million as of 31 May 2021, the estimated net gain before taxation from the Disposal is approximately RMB1.5 million. The actual gain or loss on the Disposal may be different from the above and subject to the review and final audit by the Company’s auditor. It is expected that the net proceeds from the Disposal will be used for general working capital of the Group.
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. As a result of the Disposal, it is expected that the Group will recognise a fair value gain of approximately EUR2,578,539 (equivalent to approximately HK$20,912,982) in the other comprehensive income for the year ending 31 December 2022, which is calculated on the basis of the difference between the consideration for the Disposal and the carrying amount of the relevant Prima Shares as at 31 December 2021, subject to final audit. The net proceeds from the Disposal after deducting transaction costs attributable to the Disposal is expected to be approximately EUR16,000,000 (equivalent to approximately HK$129,764,801), which is intended to be used in the following manner:
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. The audited carrying value of the Debt as at 31st March, 2004 was approximately HK$2 million. It is estimated that the gain from the Disposal would amount to approximately HK$5,430,000. The estimated gain from the Disposal of approximately HK$5,430,000 will increase the Group’s consolidated net assets by the same amount. The net proceeds from the Disposal of approximately HK$7.43 million will be used as general working capital. REASONS FOR THE DISPOSAL CWC obtained the right to acquire the land use rights of the PRC Land pursuant to the Civil Judgments issued by the PRC court in favour of CWC. In assessing the development potential of the PRC Land, the Directors have considered the Valuation and taken into account the location of the PRC Land and the Resettlement Risk. The PRC Land is located in a government office district and is not situated in a prime area for office and retail properties. Therefore, the potential value of the intended development of a commercial and retail complex over the PRC Land in accordance with the Land Grant Contract is limited. In addition, the Directors have also taken into account the remaining shortened unexpired terms for the land use rights of the PRC Land, which are 32 years and 42 years for commercial and office use respectively. After taking into account the aforesaid factors, the development potential of the PRC Land is not considered attractive. In the circumstances, the Directors, excluding Xx. Xxxx and his wife, Xxxxx Xx Xxx Xxxx, Xxxxxxxxx, who have abstained from voting but including the independent non-executive Directors, conclude that it is in the interest of the Company and its shareholders as a whole to realise the value of the PRC Land through the Disposal, which terms are fair and reasonable to the Company and its shareholders. LISTING RULES IMPLICATION Bright Wealth will be disposed of to an associate of Xx. Xxxx who is a connected person of the Company. As all the relevant size tests in respect of connected transactions stipulated under the Listing Rules calculated for the Disposal are below 2.5%, the Disposal constitutes a de minimus connected transaction under Listing Rule 14A.32 and the Company is only required to issue a press announcement and comply with certain disclosure requirements in respect of the Disposal in its next published annual report and accounts.
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. Upon Completion, Research Institute will be held as to 35% and 65% respectively by Jinhao Pharmaceutical and China Merchants Tianhe, and the total registered capital of Research Institute will be increased from RMB38,991,486 to RMB72,881,282. Research Institute will cease to be a subsidiary and become an associate of the Company, thus its financial results will no longer be consolidated into the financial statements of the Group. The Completion will result in a 65% reduction in Jinhao Pharmaceutical’s equity interest in Research Institute. Subject to the review by the auditors, it is estimated that an unaudited gain of approximately RMB531,063,000 (equivalent to approximately HK$617,515,116) (with total expenses incidental to the Disposal to be assessed for deduction) will arise from the Disposal. Such unaudited estimated gain was determined by difference between (i) the sum of cash consideration from Partial Transfer and the fair value of Jinhao Pharmaceutical’s remaining equity interest in Research Institute; and (ii) the audited carrying amount of Research Institute as at 31 December 2017. The actual gain to be recognised in the consolidated financial statements of the Group will be calculated based on the net asset value of Research Institute as at the date of Completion and therefore may vary from the amount mentioned above. Upon Completion, the gross and net proceeds that arise from the consideration for Partial Transfer will be RMB399,270,000 and RMB299,452,500 (equivalent to approximately HK$464,267,442 and HK$348,200,581), respectively. The Company intends to apply the net proceeds from Partial Transfer as general working capital of the Group. LISTING RULES IMPLICATIONS As one of the applicable percentage ratios calculated in accordance with Rule 14.07 of the Listing Rules in respect of the Disposal exceeds 25% but less than 75%, the Disposal constitutes a major transaction of the Company and is therefore subject to reporting, announcement and Shareholders’ approval requirements under Chapter 14 of the Listing Rules. So far as the Company is aware, no Shareholder is required to abstain from voting if the Company were to convene a general meeting for approval of the Cooperation Agreement and the Disposal. Xxxxxxxx, being the controlling Shareholder directly and indirectly holding 673,755,143 shares of the Company (representing approximately 62.80% of the total number of issued shares of the Company as at the date of this announcement), has given it...
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. Immediately after completion of the Disposal, AACI (HK) will cease to be a subsidiary of the Company and the financial results of AACI (HK) will no longer be consolidated into the Company’s financial statements. Subject to the review of the Company’s auditor, based on, among other factors, the consideration of approximately RMB3,485.7 million (equivalent to approximately HK$3,926.6 million(Note 1)) and unaudited net asset value of AACI(HK) as at 30 June 2018 of HK$6,184.6 million(Note 2) (without deducting the 49% minority interest in XX Xxxxxx),it is expected that the Company will record a gain before income tax arising from the Disposal of approximately HK$881 million(Note 3) upon completion of the Disposal (without considering foreign exchange impact and the profit and loss accrued by AACI (HK) and its subsidiary following the date of 30 June 2018).
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. Immediately upon Completion, the Group will cease to hold any interest in Shum Yip Land Investment. Shum Yip Land Investment will then cease to be a subsidiary of the Group. The net proceeds from the Disposal are intended to be used by the Vendor as general working capital. Based on the Consideration, the Disposal is expected to give rise to a book gain of approximately RMB50 million, being the difference between the Consideration and the Group’s share of net liability of Shum Yip Land Investment as at 31 December 2020, as if the Disposal was completed on 31 December 2020. The actual amount of gain on the Disposal to be recorded by the Group will depend on the net liability value of Shum Yip Land Investment on the completion date of the Disposal, which therefore may be different from the amount mentioned above.
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. As a result of the Disposal, the Group is expected to record an unaudited gain on the Disposal of approximately HK$5,400,000. Such gain is estimated based on the consideration receivable from the Disposal, i.e. US$700,000, less the net assets of Disposal Group excluding the accounts receivable and balances at bank accounts of approximately HK$Nil as at 30 November 2012 and other related costs and expenses. The net sale proceeds of the Disposal after deducting all related expenses to be incurred for the Disposal of approximately HK$5,400,000 are intended to be applied as the Group’s general working capital.
FINANCIAL EFFECTS OF THE DISPOSAL AND USE OF PROCEEDS. As at 31 December 2023, the carrying value of the Property as shown in the audited consolidated financial statements of the Company was approximately HK$177 million. Based on the Consideration of HK$210,000,000 and taking into account related expenses for the Disposal, the Group is expected to record a gain of approximately HK$30 million from the Disposal. The aforesaid gain on disposal is for illustrative purpose only, which will have to be ascertained at the time of preparation of the Company’s consolidated financial statements, and is subject to audit. The net proceeds from the Disposal after deducting tax and related expenses are expected to be approximately HK$207 million. The Company intends to use approximately HK$87 million for repayment of outstanding bank borrowings and the interest accrued thereof and the remaining proceeds of approximately HK$120 million will be applied as general working capital of the Group or utilised for the acquisition or leasing of a property as warehouse should a suitable one is identified.
