Tung Lok Restaurants has disposed of its entire stake in its associate company, Beijing Xihe Tung Lok Restaurant Company, on Nov 2.
The disposal was conducted by Tung Lok’s wholly-owned subsidiary My Humble House in Beijing (Restaurant) Company.
My Humble House in Beijing (Restaurant) Company is 100% owned by Tung Lok (China) Holdings, another wholly-owned subsidiary of Tung Lok Restaurants.
On Nov 1, My Humble House in Beijing (Restaurant) Company entered into a share transfer agreement to dispose of its entire 40% shareholding interests in Beijing Xihe Tung Lok Restaurant Company to Beijing Xihe Catering Management Co.
Under the agreement, Beijing Xihe Catering Management Co has agreed to purchase the 40% shares for a total consideration of RMB1 (21 cents).
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Beijing Xihe Catering Management Co is the holding company of Beijing Xihe Food & Beverage Co, which owns the remaining 60% in Beijing Xihe Tung Lok Restaurant Company.
The 40% stake in Beijing Xihe Tung Lok Restaurant Company comprises an issued and paid-up capital of RMB400,000 ($84,317).
Beijing Xihe Tung Lok Restaurant Company currently operates two restaurant outlets in Beijing, China.
The entire issued and paid-up capital in Beijing Xihe Tung Lok Company amounts to RMB1 million.
As at March 31, the net tangible liability value attributable to the shares was RMB992,000.
For the FY2021 ended March, Beijing Xihe Tung Lok Company’s audited net loss after tax RMB1.8 million. The net loss for FY2021 attributable to the shares being disposed amounted to RMB727,529.
Following the completion of the disposal, Beijing Xihe Tung Lok will no longer be an associated company of Tung Lok.
Shares in Tung Lok closed flat at 14.2 cents on Nov 2.
