I'm LongbridgeAI, I can summarize articles.CH AGRI-PROD EX plans to sell 51% of its wholly-owned subsidiary Longqun's equity in Yulin Hongjin Agricultural Products Wholesale Market Co., Ltd. for 24.69 million yuan. The transaction is set to be completed on May 30, 2025, aiming to improve the asset-liability situation of both companies and provide liquidity. Longqun has been operating the Yulin market in partnership with Yulin Investment since 2006
According to the news from Zhitong Finance APP, CH AGRI-PROD EX (00149) and Hong An Group (01222) jointly announced that on May 30, 2025, CH AGRI-PROD EX (00149)'s wholly-owned subsidiary Longqun entered into a capital reduction agreement with Yulin Investment and the target company Yulin Hongjin Agricultural Products Wholesale Market Co., Ltd. According to this agreement, Longqun's equity in the target company will be reduced from 51% to zero, with a total consideration of approximately RMB 24.69 million. This amount will be transferred and paid to Longqun by the target company via wire transfer from its bank account. According to Chapter 14 of the Listing Rules, the relevant equity reduction constitutes an indirect sale of their respective equity in the target company by Hong An and CH AGRI-PROD EX.
As of the date of this joint announcement, Longqun and Yulin Investment hold 51% and 49% of the equity in the target company, respectively. The target company is primarily engaged in property holding and operating the Yulin market.
Since 2006, Longqun has been collaborating with Yulin Investment and its predecessor in establishing and operating the Yulin market. As part of Hong An Group and CH AGRI-PROD EX's ongoing review of their respective asset portfolios, the boards of Hong An and CH AGRI-PROD EX believe that it is now an appropriate time for both groups to fully realize and unlock the investment value in the target company, which will provide liquidity for their respective operational needs and improve their asset-liability situations