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South China Holdings Company Limited ( (HK:0413) ) has shared an update.
South China Holdings Company Limited has issued a supplemental announcement regarding its previously disclosed major transaction to dispose of certain land use rights and a plant building in the PRC for RMB290 million (approximately HK$318.7 million). The company clarified that the consideration was set after arm’s length negotiations with reference to an independent preliminary valuation of about RMB280 million, conducted using the market approach and based on standard assumptions about title, regulatory compliance and the absence of forced-sale conditions. Management reviewed and accepted the valuation methodology as consistent with common PRC market practice, and the board believes the sale price, which exceeds the preliminary value, is fair, reasonable and on normal commercial terms, enabling the group to unlock value from assets that are no longer profitable due to high operating and labour costs and reduced orders from a key US customer, thereby improving working capital. The company also corrected the ownership structure of the purchaser, stating that 80% of its registered capital is ultimately owned by Hu Wenwu and 20% by Xu Hongyan, revising an earlier disclosure while confirming that all other details of the original announcement remain unchanged.
The most recent analyst rating on (HK:0413) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on South China Holdings Company Limited stock, see the HK:0413 Stock Forecast page.
More about South China Holdings Company Limited
South China Holdings Company Limited is a Hong Kong-listed company (stock code: 00413) incorporated in the Cayman Islands, with operations that include ownership and use of land use rights and plant buildings in the PRC, which form part of its asset base and operating infrastructure.
Average Trading Volume: 1,347,485
Technical Sentiment Signal: Sell
Current Market Cap: HK$428.4M
For an in-depth examination of 0413 stock, go to TipRanks’ Overview page.