DIWANG IND H(01950) plans to sell 25% stake in Darkblue Investment Ltd. for 20.84 million yuan.

DIWANG IND H (01950) announced that on December 27, 2024, the company (as the seller) entered into a sales agreement with the buyer BlueOcean Investment (Global) Ltd (an independent third party). The seller conditionsally agreed to sell, while the buyer conditionsally agreed to purchase at the purchase price shares (25% of the target company's issued share capital). The purchase price of 20.84 million RMB is to be paid in cash in installments. As of the date of this announcement, the target company Darkblue Investment Ltd. is wholly owned by the seller. Upon completion, the target company will be 75% owned by the seller and 25% by the buyer. The target company is primarily engaged in investment holding business, while its indirect wholly-owned subsidiary, Zhejiang Deep Blue, is mainly engaged in the manufacturing and sales of synthetic leather chemicals. Cao Yang is the ultimate beneficial owner of the buyer and has been working in the synthetic leather industry for over 20 years, currently engaged in the foreign trade business of synthetic leather. It is believed that entering into the sales agreement and the sale of shares will (i) increase the group's sales, as Cao will assist in developing the sales and foreign trade market of synthetic leather, and (ii) provide opportunities for the group to sell part of its equity in the target company to better utilize its management and financial resources, maintain its existing operations in various businesses, and bring immediate cash flow to the group. Therefore, this will improve the group's liquidity, increase operating funds, and strengthen its overall financial condition. The directors believe that the terms of the sale are fair and reasonable and are in the overall interest of the company and its shareholders.