Super Smart Hold-01402.HK announced that it sold its subsidiary to independent third party Yao Yucheng's Perkin International (whose main asset is the equity of Beijing Nengxingguo Yun and Changzhou Guoyun) for a cash consideration of 0.1 million yuan. The proceeds from the sale are intended to be used to pay the transaction costs and expenses related to the sale. The company expects to record a loss of approximately 14.6 million yuan from the sale.

The company stated that considering the bleak prospects of Beijing Nengxingguo Yun, the company does not intend to further invest in Beijing Nengxingguo Yun. It is also expected that the company will not be able to recover the investment cost in Beijing Nengxingguo Yun through the outstanding sales loan owed by Zhuo Zhao to the Group. The board of directors believes that the withdrawal of investment is the appropriate direction.

The company believes that the future prospects of Beijing Nengxingguo Yun and Changzhou Guoyun are very dim and it is unlikely to turn losses into profits. Therefore, the sale is more beneficial to the overall group.