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Suntech Holdings plans to sell polypropylene biaxially oriented film business for 67 million yuan

 Last Update: 2022-08-24
 Source: Internet
 Author: User

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anti mi 2

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Shuntai Holdings (01335) announced that on May 30, 2020, Shunhua Group Holdings Limited, a wholly-owned subsidiary of the company, as the seller, entered into a share purchase agreement with the buyer WF Sinco Limited, and the seller sold the target held by the buyer to the buyer.
The entire issued share capital of the company at a consideration of RMB 67 million will be paid in cash

Upon Completion, the Company will no longer hold any interest in the Target Company and the Target Company will cease to be a subsidiary of the Company

The company's shares have been temporarily suspended on the Stock Exchange since 9:00 a.
m.
on June 1, 2020, and trading will resume at 9:00 a.
m.
on July 30, 2020

According to the announcement, the target company is Shunhua (Hong Kong) Co.
, Ltd.
whose main business is investment holding and trading

Jiangsu Jingerun is mainly engaged in the sales of processed films

Qingdao Innolux is mainly engaged in the manufacture and sale of polypropylene biaxially oriented films

Qingdao Innova's financial performance has deteriorated over the past two years, the company said

Due to the rebound in oil prices and the increase in demand for anti-epidemic materials using polypropylene as raw materials, the price of polypropylene has rebounded to RMB 8,000/ton.
The increase in polypropylene prices will seriously reduce the profitability of tobacco-related films in the second half of 2020, which accounts for the company's 80% of sales; Qingdao Yingnuo’s competitors resume production, which greatly reduces the company’s orders for high-end laser films, which has an adverse impact on the company’s profits.
The board of directors believes that the sale is for the group to realize its investment in the target company Exit opportunities, which will improve the Group's asset turnover and generate additional cash inflows, which will enhance the Group's ability to seize other potential investment opportunities in the future

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