PARENTING NET's subsidiary plans to sell all the equity of its indirectly wholly-owned subsidiary for 500,000 yuan
PARENTING NET announced that it plans to sell all the equity of its indirectly wholly-owned subsidiary, Silicon Wave (Nanjing) Information Technology Co., Ltd., for RMB 500,000 on April 1, 2025. This transaction will result in the group no longer holding any interests in the company and Nanjing Chip Creation. The company believes that this sale will not affect business operations; rather, it will help improve cash flow and liquidity, with the proceeds being used for general operating funds. The board believes that the terms of the transaction are fair and reasonable and in the interests of shareholders
According to the announcement from PARENTING NET (01736), on April 1, 2025, the seller, Interstellar Group Limited (a wholly-owned subsidiary of the company), entered into an agreement with the buyer, Wu Jinfeng, where the seller agreed to sell, and the buyer agreed to purchase the equity of the existing wholly foreign-owned enterprise for a price of RMB 500,000.
The equity refers to all the shares in the registered capital of the existing wholly foreign-owned enterprise (Silicon Cypress (Nanjing) Information Technology Co., Ltd.). Given the structural contract established between the existing wholly foreign-owned enterprise and Nanjing Xinchang, Nanjing Xinchang will also effectively be sold in accordance with the sale. Therefore, upon completion, the group will no longer hold any interests in the existing wholly foreign-owned enterprise and Nanjing Xinchang, and the existing wholly foreign-owned enterprise and Nanjing Xinchang will no longer be accounted for as subsidiaries of the group.
The announcement stated that the existing wholly foreign-owned enterprise primarily provides offline product sales and technical development services for internal use and to support the group's business operations. After completion, the new wholly foreign-owned enterprise will replace the existing wholly foreign-owned enterprise in providing such services to the group. Considering the financial performance and reviewing the business and operational status of the existing wholly foreign-owned enterprise, the company believes that the sale will (i) not affect the group's business operations; (ii) strengthen the group's cash flow; and (iii) improve the group's liquidity, as the net proceeds from the sale will be used for the group's general working capital. Therefore, the board believes that the terms of the sale are fair and reasonable and in the overall interest of the shareholders
