YANGTZEKIANG (00294.HK): Sells Entire Equity Interest in Subsidiary Zhuoyue Weaving (Guangzhou) for HKD 42 Million, Constituting a Discloseable Transaction
- The purchaser shall pay a refundable earnest deposit of RMB 1,000,000 and an additional RMB 1,000,000 upon signing the formal sale and purchase agreement, bringing the total deposit to RMB 2,000,000.
- The Company is expected to record a gain of approximately HKD 35,300,000 on the disposal after deducting relevant expenses, subject to review and final audit by the auditor, with proceeds to be used as general working capital.
NewTimeSpace News: On 15 September 2026, Yangtzekiang Garment Limited (stock code: 00294.HK) announced that Hong Kong Weaving Limited, a subsidiary indirectly wholly owned by the Company (the vendor), entered into an equity transfer letter of intent in respect of the disposal with Guangzhou Jinglue Supply Chain Management Co., Ltd., an independent third party (the purchaser), under which the vendor agreed to sell and the purchaser agreed to acquire the entire equity interest in the target company, Zhuoyue Weaving (Guangzhou) Co., Ltd., for a consideration of HKD 42,000,000. As at the date of the letter of intent and before completion, the target company is an indirectly wholly-owned subsidiary of the Company; upon completion of the disposal, the target company will cease to be a subsidiary of the Company.
The announcement disclosed that the purchaser shall pay RMB 1,000,000 to the vendor as an earnest deposit upon signing the letter of intent, which will be applied as the deposit for the disposal upon signing the formal sale and purchase agreement; the purchaser shall further pay an additional RMB 1,000,000 upon signing the formal sale and purchase agreement, bringing the total deposit to RMB 2,000,000, and the balance of the consideration shall be paid within five business days after the formal sale and purchase agreement becomes effective. The consideration of HKD 42,000,000 was determined with reference to the target company's total fixed assets of HKD 38,800,000 as at 31 March 2026 and the operating profit of HKD 3,200,000 to be retained by the target company. The target company is engaged in knitting and garment manufacturing in Panyu, Guangzhou, with registered capital of HKD 38,600,000 and audited net asset value of approximately HKD 6,700,000 as at 31 March 2026, and owns factory premises and staff quarters located in Panyu District, Guangzhou.
The Board considers that the disposal provides a good opportunity for the Group to realise the value of the target company and its underlying assets, and the proceeds will be used as general working capital of the Group. On a final audit basis, the Company is expected to record a gain of approximately HKD 35,300,000 on the disposal after deducting relevant expenses, subject to review and final audit by the Company's auditor. As one or more of the applicable percentage ratios exceed 5% but are less than 25%, the disposal constitutes a discloseable transaction of the Company and is subject to the notification and announcement requirements under Chapter 14 of the Listing Rules, but is exempt from shareholders' approval requirements.
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