Cosmos Machinery Sells Loss-Making PRC Subsidiary in Connected Deal

Cosmos Machinery Enterprises Limited ( (HK:0118) ) has provided an announcement.

Cosmos Machinery Enterprises Limited has agreed to dispose of its entire equity interest in a non-profitable mainland China subsidiary with registered capital of RMB10 million for a cash consideration of approximately RMB4.65 million. The buyer is a director of both the selling subsidiary and the target company, making the deal a connected transaction at the subsidiary level under Hong Kong listing rules; however, as the relevant percentage ratios are between 0.1% and 5% and independent non-executive directors have deemed the terms fair and reasonable and on normal commercial terms, the transaction is only subject to reporting and announcement requirements. Upon completion, the target company will cease to be a subsidiary of Cosmos Machinery, allowing the group to exit a loss-making asset and potentially streamline its portfolio without requiring shareholder approval or a circular, thereby modestly reshaping its asset base while maintaining regulatory compliance.

The most recent analyst rating on (HK:0118) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Cosmos Machinery Enterprises Limited stock, see the HK:0118 Stock Forecast page.

More about Cosmos Machinery Enterprises Limited

Cosmos Machinery Enterprises Limited, incorporated in Hong Kong and listed on the Hong Kong Stock Exchange, operates through various subsidiaries and is engaged in industrial and machinery-related businesses in mainland China and Hong Kong. Its group structure includes indirect wholly owned subsidiaries and project companies through which it manages its operating assets and investments.

Average Trading Volume: 134,302

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$161.2M

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