YJFC plans to sell 51% equity in Huayin Wood Industry, which is expected to constitute a major asset restructuring
ST YJFC announced plans to sell a 51% stake in Huiyin Wood Industry due to its poor operating conditions, which affect the company's development. This transaction aims to divest non-performing assets, reduce the company's burden, and promote long-term healthy development. The transaction will be settled in cash and is expected to constitute a significant asset restructuring, but it will not affect the controlling shareholder and actual controller. After the transaction is completed, the company will optimize its asset structure, improve its financial condition, reduce its debt-to-asset ratio, and protect the interests of investors
According to the announcement from ST YJFC (600265.SH), due to the poor operating conditions of Huiyin Wood Industry since 2024, the risks continued to be exposed in 2025, which has greatly hindered the overall operational development of the company. Considering the difficulties faced by the company in its current operational development, this transaction aims to divest the non-performing assets from the company, alleviate the company's burden and pressure, and promote the long-term healthy development of the company. The company has decided today to transfer its 51% equity stake in Huiyin Wood Industry to its controlling shareholder Chow Tai Fook Investment Co., Ltd. or its designated related party. The scope of the target assets involved in this transaction has been preliminarily determined as the 51% equity stake in Huiyin Wood Industry held by the company, and specific details still need to be further negotiated and determined by both parties. This transaction is intended to be settled in cash.
According to preliminary research and calculations, this transaction is expected to constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies," and will not lead to changes in the company's controlling shareholder and actual controller. Through this transaction, the company will divest its 51% equity stake in Huiyin Wood Industry, which can quickly isolate its debts, lawsuits, and operational risks. After the transaction is completed, the company can optimize its asset structure and improve its financial condition. This transaction will be settled in cash, which will not affect the company's equity structure, and is expected to reduce the asset-liability ratio, enhance sustainable operational capability, and protect the interests of investors
