REASONS FOR THE DISPOSAL. The Group’s principal activities include international ship chartering and ship owning. The Directors continuously review the prevailing market conditions of the shipping industry and monitor and adjust the Group's fleet size as appropriate. The Directors believe that the Disposal will enable the Group to enhance its working capital position and to further improve its liquidity. The Group currently owns one modern Capesize, two modern Panamaxes, twenty one modern grabs fitted Supramaxes (including the Vessel and two Supramaxes which will be disposed by the Group later in 2009 as announced by the Company on 30 March 2009) and one Handymax. Taking into account all existing commitments to acquire and dispose of other vessels as announced by the Company previously, the Group will have additional seventeen newly built grabs fitted Supramaxes, two newly built Post-Panamaxes, one newly built Panamax and one newly built Handysize for delivery going forward, where four of which will be delivered in 2009, seven in 2010, six in 2011, three in 2012 and one in 2013. The Board believes that the Disposal will not have any material adverse effect on the operations of the Group. The terms and conditions of the Agreement have been agreed on normal commercial terms following arm’s length negotiations with reference to the prevailing market values. The Board considers such terms and conditions are fair and reasonable and in the best interests of the Company and its shareholders as a whole. Based on the net book value of the Vessel as at 30 April 2009 as described above, the Group would realize a total book gain, after estimated expenses, of approximately US$7.9 million on disposal of the Vessel. However, the actual book gain which the Group would realize upon completion of the Disposal will depend on the actual net book value of the Vessel as at date of delivery in accordance with the Group’s depreciation policy for its vessels as shown in the Company’s annual report.
REASONS FOR THE DISPOSAL. The Group is principally engaged in property development and property trading and investments, securities trading and investment, treasury investments and hotel operation. The Directors are of the view that the Disposal provides an opportunity to generate additional working capital for the Group. The proceeds from the Disposal will be used for working capital. Accordingly, the Directors are of the view that the Disposal are in the best interests of the Company and its shareholders as a whole. Upon Completion, the Target Companies will cease to be subsidiaries of the Group. Subject to the review by the auditors, the Company does not expect to record any gain or loss on the Disposal as the fair value of interests in the Target Companies is approximately the same as the Consideration at Completion.
REASONS FOR THE DISPOSAL. The Group is principally engaged in investment holding and design, manufacture and sale of a wide range of electronic products and security trading. Given the current rising property market in Hong Kong surpassed its previous peak in 1997 and the uncertainties in the macro economy, such as the future change in interest rate, tightening monetary policy in the PRC and the recent announce of raising the U.S. borrowing limit and avert an unprecedented debt default, the Directors is cautious on the increasing risk in the property market. The Directors consider that the Disposal presents a good opportunity for the Company to yield a reasonable return to its investment in the Property. The Directors believe that the terms of the Disposal are on normal commercial terms, the terms of which are fair and reasonable and in the interests of the Shareholders as a whole. The Directors (including the independent non-executive Directors) consider that the terms of the Provisional Sale and Purchase Agreements are fair and reasonable and are in the interests of the Group and the Shareholders as a whole. The proceeds from the Disposal shall be applied towards the general working capital of the Group.
REASONS FOR THE DISPOSAL. The Company is an investment holding company and its subsidiaries are principally engaged in the trading and manufacturing of consumer goods such as toys, gifts and premiums. GPTL Group is principally engaged in securities trading and investment and holding of the Land Use Rights. In order to focus of its resource on the core toys and premiums business, the Company has recently minimized activities in securities trading and investment. In addition, the Land Use Rights were acquired by the Company in year 2004 for expanding the manufacturing base to cater for the growth in business. The acquisition cost of the Land Use Rights together with the infrastructure erected thereon is approximately HK$18.75 million. However, because of keen competition in toy industry, the business growth of the Company slowed down and the lands have been vacant and there has no concrete development plan. Therefore, the Directors consider it would be beneficial to the Company to divest the non-core business and the non-performing assets so as to better utilise the resources in the core business. The Directors consider that the terms of the Disposal are fair, reasonable and on normal commercial terms and are in the interests of the Company and its shareholders as a whole. LISTING RULES IMPLICATIONS The Disposal constitutes discloseable transaction for the Company under the Listing Rules. A circular containing particulars of GPTL Agreement will be despatched to the shareholders of the Company as soon as possible.
REASONS FOR THE DISPOSAL. The Board considers that the recent financial performance of Xxxx Xxxx has not been satisfactory as a net loss after tax of approximately HK$1.72 million was recorded for the year ended 31 December 2013 and consecutive losses were recorded since the financial year ended 31 December 2011. The Board considers the Disposal can facilitate the Company to direct its focus to concentrate more on its other more profitable businesses. The consideration of RMB1 is determined on arm’s length basis between the Company and the Purchaser with reference to the adjusted book value of net liabilities of approximately RMB0.9 million (the “Adjusted Net Liabilities”) of Xxxx Xxxx as at the year ended 31 December 2013 according to the valuation report prepared by an asset appraiser, a third party independent to the Group, appointed by Xxxx Xxxx People’s Government*（ 碭山縣人民政府）on the basis of cost approach which is a method of assessing the value of an asset by emphasizing the cost of replacement or reinstatement of it under current conditions. Taking into account of the unsatisfactory performances and the Adjusted Net Liabilities of Xxxx Xxxx, the Board considered that the terms and conditions of the Disposal are fair and reasonable and on normal commercial terms and are in the interests of the Company and the Shareholders as a whole. Upon completion of the Disposal, Xxxx Xxxx will cease to be a subsidiary of the Company and the financial results of which will no longer be consolidated into the Group’s financial statement. By order of the Board China Water Industry Group Limited Xxxx Xx Xxx Chairman and Chief Executive Officer Hong Kong, 22 September 2014
REASONS FOR THE DISPOSAL. The Property was acquired by the Group in 2000 and had been letted to a fellow subsidiary within the Group by Xxxxxxx for a monthly income of approximately HK$120,000 since 15 July 2008 until 14 July 2010. Given the recent property market conditions and the appreciation in the value of the Property, the Board considers that the Disposal is in the interests of the Company and the Shareholders as a whole. The net proceeds from the Disposal will be applied to the general working capital of the Group.
REASONS FOR THE DISPOSAL. The Target Company Group is principally engaged in the provision of financial printing services in Hong Kong. Owing to the intensive peer competition in the financial printing services industry and the fluctuations of the market condition, the financial results of the Target Company deteriorated and recorded net losses of approximately HK$18.0 million, HK$3.6 million and HK$5.1 million for the years ended 31 December 2017, 2018 and 2019, respectively. The US-China trade war and the social movements in Hong Kong since 2019 has already cast shadow on both the capital and initial public offering markets in Hong Kong. Coupled with the outbreak of the COVID-19 epidemic in early 2020, Hong Kong has faced unprecedented challenges as a result of economic downturn and global economy recession that in turn inevitably severely affects the financial market in Hong Kong. These incidents significantly and adversely impact on new listing activities on the Stock Exchange. The total number of successful new listings on the Main Board and GEM of the Stock Exchange decreased from 218 cases in 2018 to 183 cases in 2019, with a remarkable drop in number of GEM new listings from 75 cases in 2018 to 15 cases in 2019. The number of successful new listings on the Main Board and GEM of the Stock Exchange for the first five months of 2020 has decreased by over 40% as compared to the corresponding period in 2018. The slowdown in capital and initial public offering activities is unfavourable to the financial printing business industry. The Company has from time to time reviewed the performance of the Target Company Group and its business prospects. As disclosed in the Company’s 2019 annual results announcement and 2019 annual report published on 31 March 2020 and 24 April 2020, respectively, considering the severe market competition in the financial printing services industry and the negative impact of the COVID-19 epidemic on the economy and capital markets, the financial printing services segment was anticipated for even tougher operation and the Group would remain attentive to the performance of this segment with a comprehensive review on its business, and would consider various possible solutions to ensure the interest of the shareholders of the Company could be served. Moreover, pursuant to the Joint Consultation Conclusions on a Revised Operational Model for Implementing an Uncertificated Securities Market in Hong Kong issued by the Securities and Futures Commission, the Stock E...
REASONS FOR THE DISPOSAL. The principal business activities of the Group are the manufacture and sale of TCM and pharmaceutical products in the PRC with a focus on concentrated TCM granules, TCM drugs and TCM decoction pieces. In January 2013, the Vendor acquired a 51% equity interest in the Target by way of capital injection of RMB153.0 million (equivalent to approximately HK$172.9 million) in cash. As the principal products of the Target Group are not in line with those of the Group, in November 2015, the Vendor disposed of 31% equity interest in the Target to China Biotechnology for a consideration of RMB139.5 million (equivalent to approximately HK$157.6 million). Following completion of the said disposal, the Vendor’s equity interest in the Target has been reduced to 20%. Although the Target Group had profit contribution to the Group in last two years, its business does not form part of the development direction for the Group’s core businesses. At the same time, the business of the Target Group has been facing severe competition which impacted its performance in the first half of year 2018. In light of the Group’s devotion to dedicate more resources and focus on the consolidation of TCM supply chain and strengthening its leading position in the core businesses, the Board decided to dispose of the remaining interest in the Target. It is estimated that the Group will realise a gain on the Disposal of approximately RMB0.5 million (equivalent to approximately HK$0.6 million), being the consideration for the Sale Interest of RMB90.6 million (equivalent to approximately HK$102.4 million), deducted by the carrying value of the Sale Interest in the Group’s consolidated accounts of RMB89.7 million (equivalent to approximately HK$101.4 million) and the expenses directly attributable to the Disposal. Shareholders should note that the actual gain or loss on the Disposal to be recorded by the Group will depend on the financial position of the Target Group as at the date of Completion and may be different from the above estimation. The proceeds from the Disposal, net of expenses directly attributable thereto, are estimated to be approximately RMB90.2 million (equivalent to approximately HK$101.9 million). The Group intends to apply the proceeds from the Disposal its general as working capital. The Directors (including the independent non-executive Directors) consider that the terms of the Agreement are fair and reasonable and the Disposal is in the interests of the Company and the Sharehold...
REASONS FOR THE DISPOSAL. The Group is principally engaged in the provision of financial services as well as financial printing services, and aims to secure its sustainable development by improving the overall operational performance of all business segments. Regarding its financial printing business, the Company considers the disposal of the Sale Shares to the Purchaser, a company wholly- owned by Xx. Xxx, a director of the Target Company, would be beneficial to the Group because on one hand the Group can remain as the majority shareholder of the Target Company, and on the other hand the interests of the core management of financial printing business will be aligned with that of the Group by becoming a minority shareholder. The management shareholding in the Target Company can secure the continuing commitments and contributions from Xx. Xxx to the Target Company Group in the future. Also, the cash proceeds from the Disposal will increase the cash resources of the Target Company Group, allowing the Group to deploy the cash proceeds to financial printing business development and to enhance its competitiveness.
REASONS FOR THE DISPOSAL. The principal activities of the Group consist of the marketing and distribution of electronic components, and the design, development and sale of electronic products. The Directors expects to recognise an audited gain/loss of approximately 62,160,000, being the difference between the Consideration and the Group’s cost of investment in the Target. The Directors consider that the Disposal represents an opportunity for the Group to realise its investment and is in line with the Group’s development strategy to streamline its LED business. The Directors are of the view that the terms of the Agreement are on normal commercial terms and are fair and reasonable and in the interests of the Company and the Shareholders as a whole. The Group intends to use the net proceeds from the Disposal to fund its future development and as general working capital of the Group.
