COSMOS MACH sold Hefei Datong Gran Plastic Industry for 55.25 million yuan, expected to incur a loss of 34.83 million yuan
I'm LongbridgeAI, I can summarize articles.COSMOS MACH announced the sale of all its equity in Hefei Datong Gran Plastic Industry to Hefei Granmei New Materials for RMB 48 million, expecting to record a loss of approximately HKD 34.83 million. This move aims to respond to the weak demand in the home appliance market and price wars, reallocating resources to businesses with growth potential. The proceeds will be used for daily operations and future investments
According to a report from the Economic Information Agency on the 14th, COSMOS MACH (00118) announced that it will sell all shares of Hefei Cosmos Gran Plastic Industry to Hefei Granmei New Materials for RMB 48 million (approximately HKD 55.25 million), and it is expected to record a loss of approximately HKD 34.832 million.
The group stated that the main business of Hefei Cosmos Gran Plastic Industry is the processing of plastic components for home appliances, which earned a profit of HKD 1.29 million last year. The sale is due to the weak demand in the domestic home appliance industry's end market, coupled with consumer downgrading and the normalization of price wars. The group plans to reallocate resources to other businesses with growth potential, and it is expected that the proceeds from the sale will be used for working capital and/or potential future investment opportunities. (wh)