I'm LongbridgeAI, I can summarize articles.Youhao Group plans to sign a framework agreement for the transfer of equity with HeRui Commercial Investment Group, transferring 100% equity of its wholly-owned subsidiary Huajun Real Estate. The equity transfer price will not be less than the net assets of the target company and the total amount of the company's long-term investment in it, with the specific price to be determined after an audit assessment. This transaction is a debt-assumed transaction, and HeRui Commercial will assume the debts of the target company. This move will help optimize resource allocation, enhance cash flow, focus on the main business, promote the development of commercial retail business, and return value to shareholders
According to the Zhitong Finance APP, Youhao Group (600778.SH) announced that the company intends to sign a "Framework Agreement for Equity Transfer" with HeRui Commercial Investment Group to reach a cooperation intention regarding the transfer of 100% equity of its wholly-owned subsidiary Huajun Real Estate Company. The determination of the equity transfer price will be based on the principle and bottom line of "not lower than the net assets of the target company and not lower than the total long-term investment amount of the company in the target company." The specific transaction price will need to be further negotiated and determined after the company increases its capital to the target company, based on the results of third-party institutions' audits and evaluations of the target company's net assets, combined with the aforementioned bottom line and principles, and after fulfilling the necessary company decision-making approval procedures to sign a formal equity transfer agreement that includes the specific price. This transaction is a debt-assuming transaction, meaning that HeRui Commercial Investment Group will assume the debts that the target company should repay to the company while acquiring 100% equity of the target company, with the specific debt amount subject to the audit results.
This transaction is beneficial for the company to further optimize resource allocation, achieve capital recovery, enhance the company's cash flow level, and help the company focus on its main business, concentrate resources to steadily develop and expand the company's commercial retail business landscape, achieve incremental performance and steady improvement in operational effectiveness, and better reward the majority of shareholders