Fuxing China subsidiary to dispose of Qingdao Hong Shi for 21m yuan

FUXING China Group's wholly-owned subsidiary has agreed to dispose all of its equity interest in Qingdao Hong Shi, for 21 million yuan (S$4.45 million) in cash.

Jade Star Group Holdings on Friday entered into a share transfer agreement with Cai Chang Cheng - an independent third party unrelated to any of the group's directors and controlling shareholders.

Said Fuxing China of the proposed disposal: "Qingdao Hong Shi engages in the production and sale of finished zippers and it has been loss-making since 2008 ... (the move) will allow the group to dispose of this loss-making business and streamline its structure and business operations."

It added that the transaction will generate a gain on disposal of approximately 8.6 million yuan - to be used for working capital requirements.

The proposed disposal is not expected to have a material impact on the group's core businesses.