Fuyao Hainan Float Glass Co., Ltd. part of Fuyao Glass Industry Group Co., Ltd. is discussing the sale of its total assets to its glassmaking subsidiary of AVIC Sanxin Co., Ltd. in Hainan Province, so…
Fuyao Hainan Float Glass Co., Ltd. part of Fuyao Glass Industry Group Co., Ltd. is discussing the sale of its total assets to its glassmaking subsidiary of AVIC Sanxin Co., Ltd. in Hainan Province, southern China to repay debts owed to Fuyao Glass. The assets have a book value of CNY 676.8 million and will be sold at CNY 450 million. Fuyao Hainan will make a provision of CNY 226.8 million for asset impairment and its net profits will decrease in 2009. Fuyao Hainan suspended production at the end of December 2008 and pays CNY 70 million per year for financial expenditure of assets to be sold, and provisions for depreciation and amortizations. The sale of these assets is beneficial to its recovery of capitals, reduction of liabilities-to-assets ratio, and optimization of product portfolio in a bid to focus on the production of automotive glass. The buyer, the subsidiary of AVIC Sanxin, is a manufacturer of float glass, transparent glass, body-tinted glass and special glass, and develops the deep processing technology of flat glass.