To repay the loan, *ST Dehao sold 100% equity of its subsidiary Zhuhai Yingrui at a discount

*ST Dehao (Dehao Runda) issued an announcement stating that the company plans to transfer 100% of the equity of Zhuhai Yingrui Energy Saving Technology Co., Ltd. (hereinafter referred to as "Zhuhai Yingrui") to Deqicheng at a price of 245 million yuan.

It is reported that Zhuhai Yingrui's business scope includes contract energy management; technical research and development and sales of energy-saving lighting equipment and electronic products; energy-saving technology promotion services; lighting equipment installation services; special design services for lighting projects; LED energy-saving project evaluation, energy efficiency analysis, design, transformation, operation, services and LED energy-saving and environmental protection engineering design.

        Financial data shows that in 2018 and the first quarter of 2019, Zhuhai Yingrui achieved net profits of approximately -3.7583 million yuan and -1.4958 million yuan, respectively.

       It is worth mentioning that Zhuhai Yingrui’s net assets are 268.8646 million yuan, while the transfer price is 245 million yuan, which is obviously a discounted sale of the subsidiary.

       *ST Dehao stated that the company's transfer of 100% equity of Zhuhai Yingrui to Deqicheng was mainly to revitalize the company's existing assets. The proceeds from the transfer will mainly be used to repay bank loans, supplement the company's working capital, etc., which will be conducive to improving the company's asset structure, increasing liquidity, reducing debt ratio and reducing financial risks.

       According to the data, *ST Dehao has been engaged in the research and development and manufacturing of small household appliances since its establishment. Its main products include Western-style small household appliances such as bread machines, ovens, coffee pots, blenders, etc. Due to the negative audited net profit for two consecutive fiscal years in 2017 and 2018, *ST Dehao was subject to a special treatment of "delisting risk warning" on April 29 this year.