Hong Kong: Hong Kong-listed Jinhui Holdings has announced that its wholly-owned subsidiary Pantow Profits has reached an agreement with Asiawide Profits, under which Pantow Profits has agreed to sell its entire 75% shares of Yee Lee Technology Company (YLTC) to Asiawide Profits for HK$32m.
YLTC is primarily engaged in the business of trading chemical and industrial raw materials.
Jinhui Holdings said the Hong Kong government recently terminated the tenancy of the premises that YLTC has been using as the sole storage location of its trading goods in Hong Kong.
“Having considered the limited future growth prospect of YLTC, its limited synergies with overall business strategy of the group, the management considered the disposal would allow the group be better focus and concentrated its resources on shipping business in the prevailing tough operating environment. It also allows the management to consider other business which could bring synergy to the shipping business in the future,” the company said in a release.
Jinhui Shipping recently cancelled a 60,000dwt bulker under construction at Japan’s Oshima Shipbuilding in order to save future expenditure amid the slump in the dry bulk market.