Shang Hai Zheng Quan Bao·2025-12-18 19:10Core Viewpoint - The company, Shanghai Huayi Group Co., Ltd., is selling two warehouse properties owned by its subsidiary, CMA Tire United Sales Company, to improve asset utilization and enhance cash flow, with total proceeds expected to be approximately $39.75 million [1][2]. Transaction Overview - The company has decided to sell a warehouse in Memphis, Tennessee for $6.1 million and another in Rancho Cucamonga, California for $31.65 million, aiming to optimize asset management and increase operational cash flow [2]. - The transactions do not constitute related party transactions or major asset restructuring [2]. Buyer Information - Olymbec USA LLC and RE 9089 8TH STREET LLC are both legally established companies with normal operational conditions, and there are no related party relationships with the company [4]. Transaction Details - The Memphis warehouse has a building area of 169,272 square feet and is sold for $6.1 million, while the California warehouse has a building area of 130,952.36 square feet and is sold for $31.65 million [3][4]. - Both properties have clear titles and are free from any legal disputes or encumbrances [4]. Pricing Information - The Memphis warehouse was sold at a competitive price through a public auction, while the California warehouse's price was determined based on its book value and local market conditions [5]. Financial Impact - The sale is expected to reduce operational costs and improve asset management, with an anticipated net profit increase of approximately $26.05 million, equivalent to about 183.84 million RMB, and a parent net profit increase of about $13.65 million, equivalent to approximately 96.33 million RMB [7].