China Yongsheng Limited, an investment holding company that is engaged in production and supply of concrete and related products, announced that its subsidiary Suzhou Yongsheng Concrete has agreed to dispose its 51 percent interest in property firm Suzhou Bochen Development Co to Gong Xiaowei for RMB15.3 million.
The company said that its board is “of the view that the group should channel its existing available resources to support its other core business, i.e. the production and supply of concrete”.
As of October 31, the net tangible asset (NTA) value of the firm’s investment in Bochen is around RMB14.55 million.
The gain from the sale is RMB0.75 million, which will be used as repayment for bank loans and for working capital purposes of the group.