Ningbo Jifeng Auto Parts (603997.SH) subsidiary Grammer intends to sell 100% of the equity of TMD LLC for $40 million.

Ningbo Jifeng Auto Parts (603997.SH) announced that its controlling subsidiary, Grammer Aktiengesellschaft (referred to as "Grammer"), plans to sell 100% equity of Toledo Molding & Die, LLC. (referred to as "TMD LLC") to APC parent, LLC (referred to as "APCLLC") for an initial transaction price of $40 million. Due to the lack of synergies between the products of TMD LLC and the company's other products, and in order to focus on its core business and enhance its core competitiveness, the company has agreed to the sale of TMD LLC by Grammer. The sale of TMD LLC by Grammer will have a significant impact on the current profit and loss statement of both the company and Grammer, but it will also increase Grammer's one-time cash inflow, which will improve Grammer's cash flow. Based on preliminary calculations by the company, it is estimated that the company will incur a loss of RMB 280-380 million. After the completion of the transaction, it will reduce the company's further strategic resource allocation in TMD, while also improving the profitability and financial condition of Grammer's Americas region, thereby enhancing the overall profitability of the company. The initial transaction price is not the final sale price, as the final transaction price will be adjusted based on the assets and liabilities of TMD LLC at the time of delivery, which may be higher or lower than the initial transaction price.