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GDH Guangnan Faces Profit Guarantee Shortfall, Maintains Stake in Target Company

Story Highlights
  • GDH Guangnan’s target company failed to meet the profit guarantee, reporting a net loss.
  • The board plans to maintain its 51% stake, viewing compensation as a price adjustment.
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GDH Guangnan Faces Profit Guarantee Shortfall, Maintains Stake in Target Company

GDH Guangnan (Holdings) Limited ( (HK:1203) ) has issued an update.

GDH Guangnan (Holdings) Limited announced that the original shareholder of a target company failed to meet the profit guarantee as per their agreement. The target company reported a net loss, resulting in a shortfall against the guaranteed net profit, necessitating cash compensation to the subscriber. The board believes that the compensation is an effective price adjustment and plans to maintain its 51% equity interest in the target company while monitoring its performance.

More about GDH Guangnan (Holdings) Limited

YTD Price Performance: -2.86%

Average Trading Volume: 26,179

Technical Sentiment Consensus Rating: Sell

Current Market Cap: €69.59M

See more insights into 1203 stock on TipRanks’ Stock Analysis page.

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