Sunfonda GP (01771.HK) announced that its indirect wholly-owned subsidiaries, Shaanxi Sunfonda and Shaanxi Sunfonda Automobile Technology Development, sold all the shares of Suzhou Sunfonda Toyota, Wuxi Sunfonda Toyota, and Yangzhou Sunfonda Junsheng to Zhongsheng Holdings (00881.HK) and Zhongsheng Dalian for a reference value of 43.97 million, 9.71 million, and 26.15 million yuan, respectively (same below). The highest prices shall not exceed 18 million, 5 million, and 28 million yuan, respectively. The group expects to achieve zero unaudited income from the sale. The proceeds from the sale will be used as the general operating funds of the group for the development of its main business.

Suzhou Sunfonda Toyota mainly operates a Toyota car sales and service 4S store in Suzhou. Wuxi Sunfonda Toyota mainly operates a car sales and service 4S store in Wuxi. Yangzhou Sunfonda Junsheng mainly operates a Lexus car sales and service 4S store in Yangzhou.

The group believes that the sale of the target companies is based on its strategic development needs to improve operational efficiency, achieve further quality improvement; and to improve asset utilization, optimize financial status and asset liquidity.