TC

28/11/2014 11:12

China Renji sees loss from household products business sale

    China Renji Medical Group (00648) said it agreed to sell 38% equity interest in Redsun Development Limited for HK$9.5 million.
  Upon completion, China Renji will no longer hold any interest in Redsun Development. It is estimated that the group will record a loss on disposal of HK$62.1 million.
  Redsun Development group is engaged in the manufacture and sale of household products in the PRC. The progress of the restructuring has been unsatisfactory for Redsun Development. On top of the downturn of the PRC white goods market this year and the unexpected stop of rolling over of loans by its commercial banks which had imposed a significant adverse impact on Redsun Development group's operation, the bankruptcy of a major customer during its restructuring has made the chance of revitalisation of its business operation remote.

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