Zhitong Finance App News, Nanhua Finance (00619) issued an announcement. On May 31, 2024, the seller (the company's indirect wholly-owned subsidiary), the buyer and these target companies entered into the agreement (sales agreement dated May 31, 2024). The seller agreed to sell and the buyer agreed to acquire such sales shares (equivalent to all issued share capital of such target companies), at a total cost of HK$1.00. Upon completion, these target companies will no longer be subsidiaries of the Group. As a result, the respective financial results of these target companies will not be consolidated into the Group's financial statements thereafter.
The buyer was Four Seas Travel Group (BVI) Limited, wholly owned by Wu Xuyang. The seller is Media Bonus Limited. Target Company A is Capital Publishing Limited, an indirect wholly-owned subsidiary of the company. Target Company B is Capital Publishing Management Limited, a wholly-owned subsidiary of the Company.
The announcement stated that although these target companies changed their strategies and upgraded their business model from a traditional printing model to a digital model, their business performance over the past few years was still unable to achieve their goals. As the overall economy of Hong Kong, China has not fully recovered from the turmoil of the pandemic due to financial and political factors, the business has been significantly affected by the fact that several major clients of these target companies have become more conservative in terms of PR activities and advertising expenses and settlement of outstanding receivables. In order to continue the company's core business in financial services, such as securities and futures brokerage, securities advisory services, corporate finance consulting services, asset management services, insurance brokerage and all ancillary services, the Board believes that the sale may cause the Group to focus its resources on financial services with better prospects. In particular, the Hong Kong Government of China promotes various policies and plans to attract Chinese citizens to travel, settle and invest in Hong Kong.
