SC HOLDINGS sells Dongguan asset transaction, buyer's equity structure now changes

SC HOLDINGS (00413.HK) announced that a significant asset sale transaction involving RMB 290 million has encountered changes, as the shareholder structure of the buyer company has altered during the transaction process. The relevant changes were approved and took effect on January 16 by the Dongguan Market Supervision Administration.

This transaction originated from announcements made by SC HOLDINGS on December 24 last year and January 5 this year. According to the agreement, SC HOLDINGS agreed to sell its land use rights and factory buildings located in Dongguan to a buyer company for a total consideration of RMB 290 million (approximately HKD 318.7 million), with the transaction originally planned to be paid entirely in cash.

According to the latest announcement, the equity structure of the buyer company has changed from being fully controlled by Hu Wenwu and Xu Hongyan to a decentralized structure held by four different entities. Before the change, Hu Wenwu held 80% of the buyer company's equity, while Xu Hongyan held 20%. After the change, Guangdong Zhongjin Industrial Investment Group Co., Ltd. holds 20% of the equity, with its ultimate beneficial owner being Zeng Jingfeng; Cheng Xianfeng directly holds 15% of the equity; Dongguan Haifang Runyuan Enterprise Management Co., Ltd. holds 45% of the equity, jointly controlled by Tan Yi and Lu Hang, each holding half; the remaining 20% of the equity is held by Dongguan Changjingyuan Technology Co., Ltd., which, through a multi-layered equity structure, is ultimately still controlled by the original shareholders Hu Wenwu and Xu Hongyan