Tianchen Holdings (01201-HK) intends to sell its packaging and printing business for 700 million yuan to Aoke Holdings (02300-HK)

Tianchen Holdings (01201-HK) announced that Kith Limited, a direct wholly-owned subsidiary of the company, sold its packaging and printing business to Aoke Holdings (02300-HK) for a transaction consideration of 700 million yuan. 　　 The packaging and printing business sold in 2015 and 2016 has a profit after tax of 73.337 million yuan and 53.483 million yuan. According to the group's unaudited consolidated financial statements, as of December 31, 2016, the net value of the group's assets should be approximately 263 million yuan. The financial impact of the transaction on Tianchen Holdings, based on the selling price of 700 million yuan, on December 31, 2016, the net value of the group's assets (excluding non-controlling interests) should be approximately 263 million yuan; and the sales loan was approximately The amount is 203.8 million yuan; and the foreign exchange reserve released is about 47.7 million yuan. After deducting the expenses of about 3 million yuan, it is estimated that the pre-tax income from the sale is about 277.9 million yuan. The disposal will enable the group to obtain additional capital and substantially increase its cash flow due to a consideration of 700 million yuan; the disposal will enable the group to focus and reallocate its resources to the development of the ion power battery business in order to seize the market opportunities of the ion power battery business and Comply with the industry standards and regulations of the ion power battery business formulated by the Chinese government by 2018 and maximize shareholder returns in the long run. In November 2016, the Chinese government issued a draft "Regulations for the Automotive Power Battery Industry (2017)" on the entry requirements for the Chinese automotive power battery market. It has explicitly urged that oxygen manufacturers are responsible for the production • The minimum energy output of ion power batteries is expected to reach more than 8 GW per year before 2018 to meet the access requirements (the Chinese government set 0.2 GW per year in 2015). The Group’s existing Phase I and Phase II production bases are currently capable of generating a maximum energy output of approximately 3.06 GW per year. Therefore, one of the Group’s strategic plans is to increase the battery capacity to meet the aforementioned expectations of the Chinese government by 2018 Regulations. The group expects that when its third-phase production base is fully developed and fully operational, it will be able to independently produce a maximum energy output of approximately 6 GW, providing the group with a total energy output of approximately 9.06 GW per year. ?can. For more exciting content, please log on to the Caihua Think Tank Website (http://www.finet.com.cn), Caihua Hong Kong Website (http://www.finet.hk) or Caihua TV (http://www.fintv) .com)