HINSANG GROUP (06893.HK): Disposal of Shatin Industrial Centre Property for HK$98 Million, Estimated Loss of About HK$23.9 Million
- The market value of the Property as at 31 March 2026 on an as-is basis was HK$120,400,000, representing a discount of approximately 18.6% of the Consideration from such valuation; the Group expects to record an estimated loss of approximately HK$23.9 million on the Disposal.
- The net proceeds are expected to be approximately HK$96.5 million, of which approximately HK$85.1 million will be used to repay bank borrowings to release the mortgage and second legal charge, with the remaining approximately HK$11.4 million to be retained for general working capital and utilised within 12 months after Completion.
- The consideration is payable in three instalments: an initial deposit of HK$4,900,000 upon signing, a further deposit of HK$4,900,000 on or before 24 September 2026, and the balance of HK$88,200,000 at Completion on or before 26 January 2027; the Vendor and the Purchaser shall enter into the formal sale and purchase agreement on or before 24 September 2026.
NewTimeSpace News: On 11 September 2026 (after trading hours), Hinsang Group (International) Holdings Limited (stock code: 06893.HK) announced that the Vendor, an indirect wholly-owned subsidiary of the Company, entered into a provisional agreement with the Purchaser, Tin Shing Group Holdings Limited, pursuant to which the Vendor agreed to sell and the Purchaser agreed to purchase the Property for a cash consideration of HK$98,000,000.
The Property comprises Workshops 1–19 on the fifth floor of Block A of Shatin Industrial Centre, including the flat roofs adjoining Workshops 3 and 4, and Car Parking Space No. L45 on the second floor of Block A, at Nos. 5–7 Yuen Shun Circuit, Shatin, New Territories, Hong Kong, with the workshop portion having a total usable area of approximately 20,840 sq. ft. The Property is subject to a mortgage and a second legal charge in favour of a licensed bank in Hong Kong, which the Vendor will procure to be released at Completion, with the relevant secured indebtedness to be repaid out of the proceeds of the Disposal. The consideration is payable in cash as follows: HK$4,900,000 as the initial deposit upon signing of the Provisional Agreement; HK$4,900,000 as a further deposit payable on or before 24 September 2026; and HK$88,200,000 (being the balance of the Consideration) at Completion on or before 26 January 2027.
The announcement further stated that, according to the valuation report prepared by an independent professional valuer using the market approach, the market value of the Property as at 31 March 2026 on an as-is basis was HK$120,400,000, representing a discount of approximately 18.6% of the Consideration from such valuation. The carrying amount of the Property in the Group's accounts as at 31 March 2026 was approximately HK$120.4 million, and the Group expects to record an estimated loss on the Disposal of approximately HK$23.9 million. After deducting estimated transaction expenses of approximately HK$1.5 million from the Consideration, the net proceeds of the Disposal are expected to be approximately HK$96.5 million, a substantial part of which will be applied towards repayment of borrowings of approximately HK$85.1 million with a licensed bank in Hong Kong to release the mortgage and second legal charge over the Property; the remaining net proceeds are currently estimated at approximately HK$11.4 million, which the Group intends to retain for general working capital and expects to utilise within 12 months after Completion.
The announcement further stated that, as one or more of the applicable percentage ratios in respect of the Disposal are 25% or more but all are less than 75%, the Disposal constitutes a major transaction of the Company and is subject to the reporting, announcement, circular and shareholders' approval requirements; the Company will convene an extraordinary general meeting to consider and, if thought fit, approve the Provisional Agreement and the transactions contemplated thereunder, and a circular containing further details is expected to be despatched to shareholders on or before 2 October 2026. To the best of the Directors' knowledge, information and belief, the Purchaser and its ultimate beneficial owners, Jiang Hongna and Lin Quanyan, are third parties independent of the Company and its connected persons.
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