Huiyuan Fruit Juice Generating 130 Million Yuan Profit from Selling Huifu

By CnAgri2013-09-09 14:12:33 Print Huiyuan announced on 19^th August that it had sold all the shares of Huifu, its 100% ownedsub company in Chengdu, Sichuan, for the price of 350 million yuan, and it expects to see around 130 million yuan profit from this. This was a second transaction within three months after selling Huiyuan (Shanghai) in June. According to the share transfer agreement, the production line of Huifu is kept by Huiyuan and shall be relocated to another plant in Sichuan. Huiyuan reiterated that relevant transactions would not reduce its business scale.
 
The Board of Directors of Huiyuan informed the company is reviewing its production network from a strategic point of view for the sake of improving competitiveness and bringing down operational cost. After the transaction, the company could generate profit and it is beneficial for the financial status of the company. The Board of Directors also pointed out the importance of Chengdu and its surrounding market is becoming higher and higher, the transaction should not bring negative impact in the sales in relevant regions, instead it should be conducive to the improvement of the overall competitiveness of the company in the region.
 
Based on data from Huiyuan, Huiyuan had no record of any net profit before or after paying tax during financial year till 31^st December, 2012.

From “China Soft Drink Market Monthly Report”