Hainan Rubber (601118.SH) subsidiary plans to transfer 100% of JFL Singapore's shares

Zhitong Finance App News, Hainan Rubber (601118.SH) issued an announcement. In order to further optimize the balance and liability structure and dispose of inefficient loss-making assets, the company's holding subsidiary Hesheng Agriculture plans to transfer its holding subsidiary JFL Agro Pte. Ltd. (“JFL Singapore Company” for short) is 100% of the shares; the counterparty intends to determine through a public offering, and the transaction price is not lower than the registered valuation result of SGD 87.262 million (equivalent to RMB 476 million based on the exchange rate of the valuation base date).

After the transaction is completed, JFL Singapore will no longer be included in the scope of the company's consolidated statements. JFL Singapore has continued to lose money in recent years, and it is difficult to reverse losses in the short term. This transaction helps the company optimize its balance and liability structure and reduce loss pressure on the overseas planting sector; in addition, the recovered funds can be used for overseas companies' main business development or repayment of foreign currency loans, which helps the company's overseas business sector increase cash flow and reduce balance ratio and financing costs.