Core Viewpoint - Nanhua Group Holdings (00413) announced the sale of industrial land in Dongguan, China, for a total consideration of RMB 290 million (approximately HKD 318.7 million) due to declining demand for specific toy products and ongoing trade tensions between China and the U.S. [1] Group 1: Sale Agreement Details - The seller, Evergrande Toys (Dongguan) Co., Ltd., a wholly-owned subsidiary of the company, entered into a sale agreement with Dongguan Yanyuan Supply Chain Management Co., Ltd. on December 24, 2025 [1] - The land in question covers an area of approximately 200 acres and is located in the Qingxi Town of Dongguan, Guangdong Province [1] Group 2: Reasons for Sale - The company faced a significant decrease in orders for specific toy products due to consumer complaints and safety claims in the U.S., as well as the impact of tariffs from ongoing U.S.-China trade tensions [1] - The operational and labor costs were not covered by the revenue generated from customer orders, leading to the decision to sell the asset as a strategic move to preserve resources and enhance operational flexibility [1] Group 3: Financial Implications - The sale is expected to result in a gain of approximately HKD 260.9 million, which will improve the company's liquidity and financial position [1] - The company retains the option to lease back the factory building from the buyer if customer orders recover, allowing for continued production of toys for those clients [1] Group 4: Board's Assessment - The board of directors believes that the sale price is fair and reasonable based on preliminary assessments of the asset's value, aligning with the overall interests of the company and its shareholders [2] - No directors have any significant interests in the sale, and there were no conflicts of interest in the board's decision-making process regarding the sale [2]
南华集团控股附属拟出售位于东莞的一幅工业用地