SINGAPORE: China Kunda Technology Holdings has entered right into a sale and buy agreement with Shenzhen City Tangjia Kitchen Appliances Company to dispose its entire 100% curiosity within the subsidiary, Shenzhen Shi Er Ju Quan Wu Ding Zhi Company (SEJ) for a net consideration of RMB 2.0mn.
SEJ, a wholly-owned subsidiary of China Kunda Technology, was incorporated with a registered and paid-up share capital of RMB 6.0mn. SEJ is principally engaged within the manufacturing and provide of furnishings and fittings.
The Board is of the view that it’s within the curiosity of the Group to undertake the disposal in view of the weak monetary efficiency of SEJ.
“Our Furniture Business had been reporting losses within the final three monetary years due to income contributed from the Furniture Business were decrease than our expectation leading to a depletion of reserves and money resources of the Group,” a discover said.
“In 2021, China’s property market has weakened as a results of measures imposed by the Chinese authorities such as tight credit score insurance policies and a looming property tax dampen demand to curb booming property prices”.
“It resulted China’s property market suffered headwinds with home prices, sales, funding and construction all falling, weighed by weak demand and a money crunch amongst developers”.
China’s property downturn is anticipated to proceed into 2022 and it’ll be difficult for companies to safe potential gross sales orders from the housing developing projects.
After the disposal is completed, the Group will proceed to evaluate the market demand of furnishings and fittings and provide the furnishings and fittings when the enterprise alternative arises.