Gelonghui, May 22丨Wan Cheng Metal Packaging (08291.HK) announced that on May 22, 2024, the company and the buyer Xu Jingye (independent third party) entered into the agreement relating to the sale. Based on this, the seller agreed to sell and the buyer agreed to buy the sale shares at a cost of HK$180,000. The sale shares are equivalent to 51% of the issued shares of the target company Wancheng Group Limited, and the target company was a direct wholly-owned subsidiary of the company on the date and until completion of the agreement. Once the sale of shares is completed, the target company will no longer be a subsidiary of the company.

The target company is a direct wholly-owned subsidiary of the company. It is a limited company incorporated in Hong Kong in 2023, and is mainly engaged in the repackaging and sale of cosmetics.

Taking into account the financial performance of the target company and after reviewing its business and operating conditions, and taking into account (including but not limited to) factors such as increasingly fierce market competition, changing consumer preferences, and other fixed costs of the target company, the board of directors believes that the sale is appropriate. Once implemented, the sale will not only bring the buyer's sales experience and network to expand the business, but at the same time, the buyer can also share the fixed costs of the target company, which will also enhance the group's cash flow and improve the group's liquidity.