(24 May 2022, Hong Kong) Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEX stock code: 860, together with subsidiaries, the “Group”) announces it has reached an agreement to dispose of its legacy watches wholesale business in a transaction that will free up more resources for the Group to concentrate on the lucrative core mobility businesses.
Under the agreement, the Company, through a wholly-owned subsidiary, has agreed to sell its entire interest in the indirect, wholly-owned Sinoforce Group Limited (“Target Company”) and its subsidiaries, which are engaged in wholesale of watches in Hong Kong, PRC and Taiwan, to an independent third party State Energy Group International Assets Holdings Limited (HKEX stock code: 918) for a total consideration of HK$50 million.
Upon completion of the disposal, the Company is expected to record a net gain of approximately HK$638,000, being the difference between the amount of consideration and the net carrying value of approximately HK$49.4 million of the Target Company as at 31 March 2022. The Group intends to apply the proceeds in further development of its design, development, manufacturing and sales of high performance hypercars and luxury smart EVs, provision of mobility technology solutions businesses, and as general working capital.
Mr. Ho King Fung Eric, Chairman of AFMG, comments, “We are delighted to have reached this agreement to dispose of the legacy watches wholesale business at a reasonable valuation. This disposal transaction will bring us a step forward in optimizing the Group’s operation management, enabling us to focus our capital and management resources on further developing our more promising mobility businesses. It will put us on a firmer footing to tap on the strong momentum in the smart EV industry, unleashing the Group’s growth potential further to maximize returns to shareholders.”.