Jiu Rong Holdings Limited announced that its indirect wholly owned subsidiary, Zhejiang Jiu Rong Intelligent Technology Limited, signed Asset Transaction Contracts on 25 June 2026 to dispose of five panel display smart production lines and related auxiliary and testing equipment to Guangzhou Yingfu Technology Co., Ltd. for RMB6.05 million (tax inclusive). The transaction was conducted via public auction on the Hangzhou Equity Exchange platform and is classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules.
The purchaser must settle the full RMB6.05 million consideration in a single cash payment within five working days of signing. Additional payments include a transaction service fee equal to 4% of the consideration and performance deposits of RMB0.44 million for the production lines and RMB0.17 million for the auxiliary equipment, both refundable upon completion.
As at 31 December 2025, the unaudited net book value of the assets totaled approximately RMB2.11 million. The disposal is expected to generate an unaudited pre-tax gain of about RMB3.94 million, calculated as the difference between the consideration and the net book value.
The production lines are currently pledged to Westlake Electronics Group Co., Ltd., and the auxiliary equipment is pledged to Soyea Technology Innovation Development Co., Ltd. The pledges will be released after receipt of the full consideration (excluding taxes and fees). Net proceeds of roughly RMB5.35 million, after deducting taxes of around RMB0.70 million, will primarily be used to repay outstanding loans secured by these pledges.
Management cited intensified competition in the digital video segment and a strategic shift toward an asset-light model as key reasons for disposing of idle manufacturing assets, aiming to cut maintenance costs and ease liquidity pressure.
Completion of the asset handover, dismantling, and removal is expected by early July 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.