Core Viewpoint - The company has agreed to sell a subsidiary for 1.00 HKD due to ongoing financial losses and high debt levels, aiming to alleviate financial burdens and reallocate resources to more profitable areas [1][2] Group 1: Financial Performance - The company's loan financing business has been negatively impacted by the Chinese economy and business environment, resulting in losses since 2019 [1] - The pandemic has worsened borrowers' financial conditions, leading to increased defaults on loans and interest repayments, significantly raising credit risk [1] - The subsidiary has recorded continuous losses and is in a net debt position, with no clear future business plan [1] Group 2: Strategic Decisions - The board believes that the sale will reduce the financial burden on the company, allowing for more efficient allocation of resources to other business areas, particularly the tobacco flavoring business [2] - Since 2023, the company has suspended new loans and financial referral services, focusing instead on recovering outstanding loans and interest [1]