OCT (Asia) (03366) subsidiary plans to list and sell 100% of OCT (Changshu) Industrial's shares

According to the Zhitong Finance App, OCT (Asia) (03366) announced that the seller Huagang Enterprise Co., Ltd. (an indirect wholly-owned subsidiary of the Group) intends to publicly list and sell 100% of the shares (i.e. sales rights) of OCT (Changshu) Industrial through designated exchanges. Therefore, the company intends to seek prior authorization from shareholders to establish and complete the proposed sale. The minimum listing price will be determined by the Group, but it will not be less than RMB 212 million.

Assuming that the proposed sale is completed at the lowest price, the net proceeds from the proposed sale are estimated to be approximately RMB 207 million (after deducting estimated taxes, fees and expenses). The company plans to use the net proceeds mainly to repay the Group's loans based on the Group's estimates of future market conditions and developments, and it currently plans to repay such amounts after the proposed sale is completed and before June 30, 2027.

The proposed sale is in line with the Group's business strategy of optimizing its business structure and concentrating resources on the Group's core business. The Group can receive no less than RMB 206 million in cash and net income of not less than RMB 32 million. Proceeds can reduce the Group's interest-bearing liabilities, improve the Group's financial position, and increase liquidity to support the Group's overall development.