Core Viewpoint - Sanai Health Group (01889.HK) has announced the sale of a 99% stake in its subsidiary, Luanan Hangyang Health Industry Co., Ltd., for approximately RMB 18.69 million, which will be settled in cash. The decision to sell is driven by unfavorable market conditions and aims to enhance cash flow and focus on core business areas [1][1][1] Group 1 - The seller, Beijing Hangyang Health Technology Co., Ltd., is a non-wholly owned subsidiary of the company [1] - The target company has not commenced actual operations and was initially intended to build production facilities to expand health product capacity [1] - The management has decided to terminate the expansion plan due to recent adverse market conditions [1] Group 2 - The board believes that continuing to hold the stake in the target company may not yield the best returns for shareholders [1] - The sale is seen as an ideal opportunity to create additional cash flow for the company [1] - The net proceeds from the sale, estimated at approximately RMB 18.68 million after related expenses, will be used for general working capital and other business development [1] Group 3 - The completion of the sale is expected to improve the group's liquidity position and strengthen its financial status [1] - The divestment will allow the group to streamline operations and reallocate resources to areas with stronger competitive advantages and expertise [1]