Core Viewpoint - Dongwu Cement (00695) has seen a stock price increase of over 3%, currently trading at 6.3 HKD, following the announcement of a sale agreement with Jia Yi Holdings for the acquisition of its subsidiary, Dongfang Chengzheng Rare Earth, for 10 million HKD [1] Group 1: Company Actions - The company has entered into a sale agreement to sell all issued shares of its subsidiary, Dongfang Chengzheng Rare Earth, to Jia Yi Holdings, with the transaction valued at 10 million HKD [1] - Upon completion of the sale, the company will no longer hold any shares in the target company, and the target will cease to be a subsidiary, meaning its financial performance will not be included in the company's consolidated financial statements [1] Group 2: Financial Performance - The company acquired a majority stake in a rare earth permanent magnet materials producer in 2023, but the subsidiary has shown poor financial performance over the past two years, with after-tax losses of approximately 9.15 million HKD for the year ending December 31, 2023, and 27.77 million HKD for the year ending December 31, 2024 [1] - The losses are attributed to a downward trend in magnetic material prices and insufficient production scale of the subsidiary [1] Group 3: Strategic Focus - The company believes that the sale will allow it to concentrate financial resources on its cement business, improving cash flow liquidity and financial flexibility, thereby streamlining operations and enhancing overall financial performance [1]
港股异动 | 东吴水泥(00695)涨超3% 与嘉逸控股订立买卖协议 拟出售东方诚正稀土100%股权