SHENGLI PIPE (01080) announced that regarding the potential sale through public tender, as disclosed in the previous announcement, the Group intended to sell the 98% equity interest held by Shandong Shengli in the target company (the "Potential Disposal") through a public tender process at Shanghai United Assets and Equity Exchange Co., Ltd.
As a further development, considering the internal review requirements and time needed for procedures at Shanghai United Assets and Equity Exchange, the Group has decided to switch to Southern United Assets and Equity Exchange ("Southern Exchange") for the public tender process.
The Board hereby announces that the tender notice for the Potential Disposal has been published on the Southern Exchange website as of the announcement date. Interested parties may apply to Southern Exchange for registration as potential buyers of the target company. After the registration period ends, potential buyers on the candidate list will be selected as qualified bidders. These qualified bidders will subsequently be invited to participate in the online bidding process. Upon completion of the online bidding process, the successful bidder will be determined as the qualified bidder who submits the highest bid.
As disclosed in the previous announcement, the minimum bidding price for the Potential Disposal is RMB 29.5 million. The final consideration for the Potential Disposal will depend on the final bidding price and shall not be lower than the minimum bidding price under any circumstances.
Since the final gain/loss from the Potential Disposal depends on the final bidding price provided by the successful bidder, which can only be determined upon successful completion of the public tender, the financial impact of the Potential Disposal cannot yet be determined.
For illustrative purposes, assuming the Potential Disposal is conducted at the minimum bidding price of RMB 29.5 million, the Group is expected to record a gain on disposal of a subsidiary of approximately RMB 14,000 for the six months ending June 30, 2025, which will be recognized in the consolidated statement of profit or loss, and a fair value decrease of approximately RMB 14.272 million in equity investments designated at fair value through other comprehensive income, which will be recognized in the consolidated statement of other comprehensive income.
Upon successful completion of the public tender, Shandong Shengli (being the seller of the target company) is expected to enter into a final equity sale and purchase agreement with the successful bidder (if any).