Hong Kong-listed LET Group Holdings Ltd has disclosed that its indirect wholly-owned subsidiary entered into the sale and purchase agreement to sell 100 percent of Dongyang Xinguang Pacific Industrial at RMB20 million ($2.8 million)
LET Group, formerly known as Suncity Group, took over the mall operator Dongyang Xinguang Pacific Industrial in a judicial auction in in 2020 at price of RMB25.6 million ($3.5 million).
According to the Thursday filing, the company notes that it is expected to record a pre-tax unaudited loss of approximately HK$1.5 million ($190,000) as a result of the disposal.
However, the Board believes that the disposal ‘provides a good opportunity for the Group to realise its investment in the Target Company’ and ‘focus its resources to develop its existing businesses in light of the fact that the Target Company has been in loss making position since May 2022 and there is keen competition between physical stores and online platforms.’
‘Having considered the continual loss making situation of the Dongyang Xinguang and fierce competition from online platforms, the Disposal will avoid the Group to further inject working capital for the deteriorating business, together with the realisation of capital of the Group’s other businesses, the Directors are of the view that terms of the Sale and Purchase Agreement are on normal commercial terms and are fair and reasonable and in the interests of the Company and the Shareholders as a whole.’
Currently, LET Group is principally engaged in through Suntrust Resort Holdings, Inc. and its subsidiaries, the development and operation of the Main Hotel Casino in the Philippines. The Main Hotel and Casino in Manila is expected to open in 2024.