On July 26th, 2024, VC Holdings (00821.HK) announced that the buyer (a wholly-owned subsidiary of the company) and the seller, Zhong Xi Energy (Beijing) Co., Ltd., had entered into an equity transfer agreement. Under this agreement, the buyer agreed to purchase and the seller agreed to sell the sales equity for RMB 9,990. The sales equity accounts for 30% of the equity of the target company, Hainan Zhongtian Jiahe Industry Co., Ltd.
The target company is mainly engaged in international and domestic trade of the following commodities: i) liquefied natural gas; ii) liquefied petroleum gas; iii) petroleum coke; and (iv) asphalt, etc.
The target company's business operations involve specific professional and technical expertise. The target company has an experienced management team and existing operational and compliance infrastructure, which is of inestimable value in ensuring that operations comply with legal and safety standards, thereby reducing potential risks associated with this industry. After becoming a shareholder of the target company, the management team of the group can enter this industry and obtain technical knowledge from the established structure of the target company. This strategic action can provide a good opportunity for the group to enter the natural gas business and enhance the stability and growth potential of the overall business.