Core Viewpoint - Jiangsu Farsen Co., Ltd. plans to sell its 10% stake in Beikaert Steel Cord (China) Co., Ltd. to Beikaert Steel Cord Products Hong Kong Limited for cash, marking a significant asset restructuring move [1][2]. Group 1: Company Overview - Farsen primarily engages in metal products and environmental protection businesses, with metal products accounting for 86.14% of its revenue and environmental protection contributing 13.86% [1]. - Beikaert Steel Cord was established in December 1992 and is primarily involved in the production and sale of steel cords for tire reinforcement, exporting mainly to Japan, North America, and Southeast Asia [1]. Group 2: Financial Data - In 2024, Beikaert Steel Cord reported total assets of 1.403 billion yuan, net assets of 767 million yuan, and revenue of 1.588 billion yuan [2]. - Farsen's revenue for 2024 was 312 million yuan, with the 10% stake in Beikaert Steel Cord corresponding to 159 million yuan in revenue, representing 50.85% of Farsen's total revenue for that year [2]. Group 3: Strategic Rationale - The decision to divest the stake is aimed at focusing on core businesses, as the products of Beikaert Steel Cord have low relevance to Farsen's main operations [3]. - Proceeds from the sale are expected to be reinvested in upgrading technology and equipment in the metal products sector and expanding market share in the environmental protection sector [3].

Core Viewpoint - The company Falsheng plans to transfer 10% equity of Beikaert Steel Cord (China) Co., Ltd. to BEKAERT STEEL CORD PRODUCTS HONG KONG LIMITED for cash, marking a significant asset restructuring move [2][3]. Group 1: Transaction Details - The transaction will result in Falsheng no longer holding any equity in Beikaert Steel Cord, which will then be fully owned by the Hong Kong entity [2]. - Prior to the transaction, BEKAERT STEEL CORD PRODUCTS HONG KONG LIMITED held 90% of Beikaert Steel Cord, and after the transaction, it will hold 100% [2]. - The projected revenue for Beikaert Steel Cord in 2024 is 1.588 billion yuan, while Falsheng's revenue is projected at 312 million yuan, with the 10% equity representing 50.85% of Falsheng's revenue [2]. Group 2: Strategic Implications - The transaction aligns with Falsheng's strategy to gradually divest from traditional metal products business, improving asset liquidity and providing funding for its main business development [3]. - The move is also a response to Beikaert's strategic adjustment to operate independently, which supports Falsheng's objective of resource integration and maintaining shareholder interests [3]. - Post-transaction, Falsheng expects a significant reduction in other equity investments and an increase in cash reserves, which will be used to pay off debts and enhance operational liquidity [4]. Group 3: Future Plans - The parties aim to sign a formal equity transfer agreement by the end of November 2025 and complete the transaction by the end of December 2025 [4].