--- title: "MEDINET GROUP plans to sell all issued share capital of HKD 14.4 million in Hengquan" type: "News" locale: "en" url: "https://longbridge.com/en/news/224494497.md" description: "MEDINET GROUP plans to sell all issued share capital of its wholly-owned subsidiary Hengquan for HKD 14.4 million. The transaction is expected to be completed on January 9, 2025, after which Hengquan will no longer be a wholly-owned subsidiary of the company, and its financial performance will no longer be consolidated into the company's accounts. Due to the impact of COVID-19, Hengquan's dental services business has faced significant challenges, resulting in ongoing losses. This sale will help MEDINET GROUP to liquidate assets, reduce costs, and enhance cash flow to develop its medical services business" datetime: "2025-01-09T23:13:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/224494497.md) - [en](https://longbridge.com/en/news/224494497.md) - [zh-HK](https://longbridge.com/zh-HK/news/224494497.md) --- # MEDINET GROUP plans to sell all issued share capital of HKD 14.4 million in Hengquan According to the announcement from MEDINET GROUP (08161), on January 9, 2025, the seller (a wholly-owned subsidiary of the company) entered into a sales agreement with the buyer Zhao Chuangbo, whereby the seller conditionally agreed to sell, and the buyer conditionally agreed to acquire the sale shares (equivalent to the entire issued share capital of the target company) for HKD 14.4 million, subject to the terms and conditions of the sales agreement. Upon completion, the target company Hengquan will no longer be an indirect wholly-owned subsidiary of the company, and the financial performance of the target company will no longer be consolidated into the company's accounts. The target company Hengquan Limited is primarily engaged in operating dental clinics that provide dental services, including orthodontic treatment, laser dental implant surgery, teeth whitening, and other general dental services. On July 12, 2018, the group acquired the target company from the buyer's controlled company Tradewide Investments Limited. Since the aforementioned acquisition, the target company's dental services business has faced significant challenges due to the impact of COVID-19. The group's dental industry has been further affected in the post-COVID era, particularly with the reopening of borders, leading to a surge of patients seeking dental treatment in Shenzhen. The shift in consumer behavior has negatively impacted the dental business in Hong Kong, resulting in continuous losses for the target company over the past year. The target company has incurred losses for the two financial years ending March 31, 2024. Therefore, the company believes that it is not feasible for the target company to continue operating the dental clinic business. The sale will enable the group to realize the remaining value of the target company, reduce the additional costs incurred by the group in providing dental services in Hong Kong, and supplement the group's cash resources to better utilize resources for the development of the group's medical services business ### Related Stocks - [08161.HK](https://longbridge.com/en/quote/08161.HK.md) - [06136.HK](https://longbridge.com/en/quote/06136.HK.md) - [301235.CN](https://longbridge.com/en/quote/301235.CN.md) - [002622.CN](https://longbridge.com/en/quote/002622.CN.md) - [002589.CN](https://longbridge.com/en/quote/002589.CN.md) - [01733.HK](https://longbridge.com/en/quote/01733.HK.md) - [01250.HK](https://longbridge.com/en/quote/01250.HK.md) - [688139.CN](https://longbridge.com/en/quote/688139.CN.md) - [000428.CN](https://longbridge.com/en/quote/000428.CN.md) - [02158.HK](https://longbridge.com/en/quote/02158.HK.md) ## Related News & Research - [Markets are pricing in a rate hike by the European Central Bank - and that could be a 'mistake in the making'](https://longbridge.com/en/news/289187307.md) - [What's Going On With Hyperscale Data Stock Monday?](https://longbridge.com/en/news/289059671.md) - [4 things that happen to your money if the Iran war drags into 2027](https://longbridge.com/en/news/288928443.md) - [CITIC seeks Hong Kong listing for USD 9 billion medium-term note programme](https://longbridge.com/en/news/289295703.md) - [12:51 ETThe 2026 Global Energy Prize shortlist released](https://longbridge.com/en/news/289220075.md)