Changes in Hong Kong stocks | Minhua Holdings (01999) rose nearly 5% to acquire 100% interest in Gainline Recline Intermediate Corp.

The Zhitong Finance App learned that Minhua Holdings (01999) rose nearly 5%. As of press release, it had risen 4.77% to HK$4.61, with a turnover of HK$8.388,600.

According to the news, Minhua Holdings announced that Minhua Manufacturing of America, an indirect wholly-owned subsidiary of the company, signed a sales agreement with the seller Gainline Recline Holdings, LLC on December 18, 2025. According to this, Minhua Manufacturing of America agreed to buy and the seller agreed to sell the purchased shares, that is, 100% of the issued share capital of the target company Gainline Recline Intermediate Corp., at a cost of 32 million US dollars. At the same time as delivery, the seller delivered to the company a copy of a repayment letter duly signed by an American bank stating that the total amount required to settle all outstanding obligations under bank financing granted to the target group was US$27.9939 million as of the delivery date.

After delivery, Minhua Hong Kong Trading, an indirect wholly-owned subsidiary of the company, granted the target group an interest-free loan of US$266.703 million to fully repay all of the aforementioned bank financing obligations. The balance of $1,323,600 will be repaid by the target group's available bank cash on the delivery date. As a result, the Group acquired the target group's business for a total of approximately $58.7 million, including the target group's debts to be settled upon delivery.

The Group believes that after delivery, the cross-selling opportunities brought by the target group through its furniture retail distribution network with more than 1,000 active customers, as well as the cost savings opportunities created by the target group in procuring raw materials and improving manufacturing efficiency, will have a synergy effect between the target group and the group's business.