WINOX (06838.HK): Subsidiary disposes of 94 sets of used equipment for total consideration of approx. RMB 15.1 million
NewTimeSpace News: On 10 September 2026, Winox Holdings Limited (stock code: 06838) announced that its wholly-owned subsidiary Huizhou Fengcai Precious Metal Manufacturing Co., Ltd. entered into three sale and purchase agreements of substantially the same terms with Dongguan Heli Machinery Equipment Co., Ltd. for the disposal of certain used equipment at a total consideration of approximately RMB 15,111,504 (excluding VAT).
According to the announcement, the three agreements cover 32 sets, 38 sets and 24 sets of used equipment respectively, comprising voltage stabilisers, transformers, oil mist separators, vertical machining centres, small machining centres and engraving machines. The VAT-inclusive considerations are RMB 6,961,150, RMB 5,184,050 and RMB 4,930,800 respectively, comprising actual considerations of RMB 6,160,309.73, RMB 4,587,654.87 and RMB 4,363,539.82 and 13% VAT of RMB 800,840.27, RMB 596,395.13 and RMB 567,260.18. The considerations were determined after arm's length negotiation with reference to the prevailing market prices of comparable second-hand equipment of similar model, age and condition, the performance and remaining useful life of the equipment, and their book values of approximately RMB 1,027,002.47, RMB 1,646,205.24 and RMB 3,051,337.99. The Group adopted a highest-offer principle and obtained no fewer than five quotations from independent third parties. The buyer must pay the consideration within three business days of signing and remove the equipment from the factory within five business days.
The announcement stated that, against a persistently weak consumer market and other uncertainties, the Group continued to implement streamlining plans and cost-reduction policies in 2026, eliminating or reducing production capacity for certain loss-making products and systematically disposing of obsolete and idle equipment. The total book value of the equipment was approximately RMB 5,724,545.70 as at 10 September 2026, and the Group recorded a gain of approximately RMB 9,386,958.72 on the disposal before tax and transaction expenses, subject to final audit, with proceeds to be used to replenish working capital. As certain members of the Group also disposed of used equipment to the same buyer within the 12 months preceding the agreements for a total consideration of approximately RMB 2,149,628 (excluding VAT), the transactions are aggregated under Rule 14.22; as the highest applicable percentage ratio exceeds 5% but all applicable ratios are below 25%, the entering into of the agreements constitutes a discloseable transaction with exemption from shareholders' approval.
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