Financial Street Holdings restructures subsidiaries, focuses on core assets

Financial Street Holdings (SZSE:000402) announced a restructuring plan involving two subsidiaries, Changrong Company and Changjin Company. The company plans to sell its 30% stake in Changrong Company on the Beijing Equity Exchange, with the transfer price no less than the assessed value approved by state-owned asset regulators. Concurrently, it will acquire a 51% stake in Changjin Company, also through the Beijing Equity Exchange, at a price not exceeding the assessed value. The restructuring involves transferring associated debt of 1.8 billion yuan for each subsidiary. Financial Street Holdings' wholly-owned subsidiary, Chang'an Real Estate, currently holds stakes in both companies. This restructuring aims to streamline operations, enhance decision-making efficiency, and optimize the company's asset portfolio. The transaction's impact on 2024 net profit is estimated at -93.98 million yuan.