Shanghai New Huang Pu Industrial Group (600638.SH) plans to transfer its 10% equity stake in Shanghai Microstar Company for 170 million yuan.

Shanghai New Huang Pu Industrial Group (600638.SH) announced that the company plans to transfer 10% equity of Shanghai Microstar Housing Leasing Operation Co., Ltd. (referred to as "Shanghai Microstar Company") it holds, with an estimated price of 170 million yuan. The sale of the asset is beneficial for the company to optimize its assets, enhance asset liquidity and utilization, form a virtuous cycle of existing assets and new investments, further promote the company's strategic planning for rental housing business development, increase the company's competitiveness, and drive healthy and sustainable development of the company. It is expected that after the completion of the equity transfer, the net profit will generate approximately between 50-70 million yuan (subject to the conditions of staged payment reaching a settlement and adjustment mechanism in the transaction agreement for the equity transfer price), accounting for more than 50% of the audited net profit attributable to ordinary shareholders in 2023.