REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT Sample Clauses

REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT. The Disposal is part of an internal reorganization to strengthen the business integration of Shenzhen CIMC Tongchuang and its related companies, as well as to streamline the supply chain business of Shenzhen CIMC Tongchuang and CIMC Huijie, ultimately enhancing the synergistic value of Shenzhen CIMC Tongchuang within the CIMC Group. As the Disposal Consideration will be used to invest in Shenzhen CIMC Tongchuang, it is estimated that there will be an increase in the carrying value of long-term equity investment with respect to the shareholding of CIMC Xxxxx (Shenzhen) in Shenzhen CIMC Tongchuang. The Directors (including the independent non-executive Directors) are of the view that the Disposal is conducted on normal commercial terms, and the terms of the Equity Transfer Agreement and the Disposal are fair and reasonable and in the interests of the Company and the Shareholders as a whole.

REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT. The Company is a company incorporated in the Cayman Islands with limited liability, the shares of which are listed on the Main Board of the Stock Exchange. The principal business activity of the Company is investment holding. The Group is primarily engaged in the property development and sales, hotel operations, property management and commercial properties investment in the PRC. The purpose of the Acquisition is for group restructuring by adding another holding company, Guangzhou Xinze, in the direct ownership of Guangzhou Jingyu by Guangzhou Yinong and Guangzhou Jinke. The terms of the Equity Transfer Agreement have been arrived at after arm’s length negotiations between the parties. The Directors (including the independent non-executive Directors) have confirmed that the terms of the Equity Transfer Agreement and the transactions contemplated thereunder are fair and reasonable, on normal commercial terms or better and in the interests of the Company and its shareholders as a whole. As at the date of this announcement, none of the Directors has any material interest in the Equity Transfer Agreement and the transactions contemplated thereunder. THE PREVIOUS TRANSACTION On 11 October 2020, Guangzhou Yinong and Guangzhou Jinke entered into the Articles, pursuant to which the parties thereto agreed to establish Guangzhou Xinze for the purpose of acquiring and holding the entire equity interest in Guangzhou Jingyu. The principal terms of the Articles are summarised as follows: Date : 11 October 2020 Parties : (a) Guangzhou Yinong

REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT. The Directors are of the view that the Equity Transfer Agreement facilitates the Group’s control over Enchang Company, one of the schools sponsors of the Group. In addition, the Acquisition under the Equity Transfer Agreement entitles the Group to receive all the economic benefits derived from (1) Enchang Company, as a future school sponsor of the Central China School, and

REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT. The Equity Transfer is for the purpose of complying with the relevant requirements made by the regulatory authorities on the Company’s implementation of refinancing, which is conducive to the implementation of refinancing plans of the Company. Considering that Yuneng Industrial is principally engaged in real estate development, which is not the major scope of business of the Company, the Equity Transfer will not constitute substantial harm to the major business and financial condition of the Company. The sales proceeds of the Equity Transfer is intended to be used as replenishment of general working capital of the original equity holders of Yuneng Industrial. None of the Directors has any material interest in the transaction. The Directors (including independent non-executive directors) are of the view that the terms of the Equity Transfer Agreement were negotiated by the parties on arm’s length basis and determined on normal commercial terms, and are fair and reasonable and in the interests of the Company and the Shareholders as a whole.

REASONS FOR AND BENEFITS OF ENTERING INTO THE EQUITY TRANSFER AGREEMENT. The Group is principally engaged in the manufacture and sale of edible collagen sausage casing products and pharmaceutical products in the PRC. It has been the strategy of the Group to seek suitable investment opportunities with a view to increase the Company’s shareholders value and broaden its income source alongside with developing its existing businesses. The Directors are of the view that the Acquisition will diversify and expand the existing businesses of the Group and create a new revenue stream. Upon completion of the Acquisition, the Group will be able to tap into the production of collagen-related functional products in a more time-efficient manner when compared with developing these technologies afresh. The Acquisition represents another key step of the Group to further utilize the Group’s core competence in collagen application. The Directors (including the independent non-executive Directors) are of the view that the terms of the Equity Transfer Agreement and transactions contemplated thereunder are fair and reasonable, on normal commercial terms and in the interests of the Company and the Shareholders as a whole.