SUNDART HLDGS plans to establish a joint venture company
SUNDART HLDGS announced that it will establish a joint venture on April 9, 2025. Gloryeild will inject shareholder loans as capital, while Langsheng will transfer capital through loans. The joint venture will focus on the wholesale, retail, and distribution of artificial stone and related products, aiming to improve the procurement efficiency of interior decoration materials, enhance capital appreciation, and create more returns for shareholders
According to the announcement from SUNDART HLDGS (01568), on April 9, 2025 (before trading hours), the company's wholly-owned subsidiary Gloryeild, along with Langsheng and the joint venture, entered into a shareholders' agreement regarding the establishment of a joint venture for acquisition purposes.
According to the shareholders' agreement, Gloryeild is required to inject shareholder loans into the joint venture as capital, while Langsheng must facilitate and instruct Gao Shi to establish a loan transfer to inject capital into the joint venture.
After the establishment of the joint venture, from an accounting perspective, the joint venture will be accounted for as an associate of the company in accordance with applicable Hong Kong Financial Reporting Standards; the financial performance of the joint venture will be accounted for using the equity method.
The sole business of the joint venture is to engage in wholesale, retail, distribution, production, marketing, design, import, processing, trading, supply, assembly, and maintenance of resin-based artificial stone and related products through its subsidiaries in various regions, as well as other businesses that the joint venture's board of directors may unanimously agree upon from time to time.
As one of the leading integrated interior decoration contractors in Hong Kong, Macau, Singapore, and China, the group continuously seeks opportunities to streamline the procurement process of interior decoration materials, making the interior decoration projects undertaken by the group more cost-effective, time-saving, and efficient. Given the increasing prevalence of artificial stone composite surface products as interior decoration materials, the group believes that the acquisition presents a good opportunity for the group, benefiting the procurement and production of artificial stone composite surface products. Furthermore, the acquisition will enhance the group's capital appreciation, enabling the group to generate greater returns for its shareholders. Therefore, the group has decided to establish a joint venture with Langsheng for the acquisition
