China Textiles Holdings (03778) plans to sell the main assets of the staple fiber manufacturing division for RMB 45.27,200

According to Zhitong Finance App, China Textiles Holdings (03778) issued an announcement. On January 5, 2026, the seller Jiangxi Jinyuan (a wholly-owned subsidiary of the company) and the buyer Jiangxi Fengxin County Industrial Park Development Co., Ltd. signed a sales agreement. The buyer has conditionally agreed to acquire the target assets without any property burden or third party rights. The relevant cash cost is RMB 45,272 million.

The target assets include 8 plots of land located in the Fengxin County Industrial Park in Fengxin County, Jiangxi Province, China (with a total area of 215.8 acres (about 143,867 square meters)), and premises erected on this land, with a total floor area of approximately 37,074 square meters. The total floor area is used for workshops, boiler facilities, sewage treatment facilities, warehouses and auxiliary buildings and infrastructure. Upon completion, the Group will no longer have any interest in the target assets.

The Group is mainly engaged in the manufacture and sale of yarn products and related raw materials. The target assets are the main assets of the Group's staple fiber manufacturing division, which ceased operations in 2022. Since then, the target assets have been reallocated to support the yarn manufacturing business. However, since the target asset is for the staple fiber manufacturing business, its contribution to the yarn manufacturing sector has been limited since it was redeployed. The Group is expected to obtain a net book income of approximately RMB 4 million as a result of the sale. The actual amount of profit or loss that the company will obtain as a result of the sale will be subject to review and final review by the company's auditors before it can be realized. It is anticipated that the net proceeds from the sale will be used as the Group's general working capital.

Supervisors may obtain estimated profits from the sale. The directors believe that if the sale is completed, it will be an opportunity for the Group to realise the value of target assets, thereby enabling the Group to reallocate more financial resources to its main business.