Green International Holdings Limited Issues Clarification and Supplemental Information on Disposals of Beauty Parlors

Green International Holdings Limited (Stock code: 2700) has released a clarification and supplemental announcement regarding its previously disclosed transactions involving the disposal of two beauty parlors. The announcement addresses key errors and provides crucial financial details, along with strategic implications that may have a direct impact on the company’s share value.

Key Points from the Announcement

• Correction of Purchaser Information: The company clarified a typographical error in the earlier announcement. Mr. Tan Huo is identified as the purchaser under the Second Disposal, not the First Disposal, which rectifies previous confusion about transaction parties.
• Detailed Financial Performance of Disposed Beauty Parlors:
  • First Beauty Parlor:
    • Revenue has declined significantly over three years: HK\$4,014,000 (2023), HK\$3,783,000 (2024), and HK\$1,881,000 (2025).
    • Gross profit followed the same downward trend: HK\$3,693,000 (2023), HK\$3,596,000 (2024), and HK\$1,818,000 (2025).
    • Consistent losses before and after taxation: HK\$3,563,000 (2023), HK\$2,697,000 (2024), HK\$2,759,000 (2025).
  • Second Beauty Parlor:
    • Revenue also dropped: HK\$3,723,000 (2023), HK\$3,267,000 (2024), and HK\$2,827,000 (2025).
    • Gross profit: HK\$3,487,000 (2023), HK\$3,071,000 (2024), HK\$2,722,000 (2025).
    • Losses before and after taxation: HK\$1,898,000 (2023), HK\$1,513,000 (2024), HK\$2,763,000 (2025).
• Carrying Values of Disposal Assets:
  • First Disposal Assets: HK\$509,000 (as at 30 June 2025) and HK\$500,000 (as at 1 September 2025).
  • Second Disposal Assets: HK\$91,000 (as at 30 June 2025) and HK\$48,000 (as at 1 October 2025).
• Strategic Benefits of the Disposal:
  • The Purchasers have agreed to continue servicing existing customers, retain existing staff and pay their salaries, and take over lease obligations starting from the respective cut-off dates.
  • This arrangement allows the company to avoid expenses of approximately RMB4.6 million that would otherwise be incurred if the shops were closed rather than transferred, thus saving substantial costs and improving operational efficiency.

Implications for Shareholders and Potential Price Sensitivity

• Reduction of Loss-Making Operations: Both beauty parlors were consistently loss-making, with declining revenues and profits over three years. Their disposal removes persistent negative contributors from the company’s balance sheet, which could be viewed positively by investors seeking improved profitability.
• Cost Savings: The avoidance of RMB4.6 million in expenses is significant, potentially improving the company’s cash flows and reducing future liabilities. This could have a direct impact on valuation and investor sentiment.
• Continuity for Customers and Staff: Assurances that the purchasers will retain staff and maintain customer service may mitigate reputational risks and ensure smoother transition, which is important for stakeholder confidence.
• Clarified Transaction Details: The correction regarding the purchaser of the Second Disposal eliminates ambiguity and strengthens the transparency of the transaction, which is important for regulatory compliance and investor trust.

Board Composition

• Executive Directors: Mr. Yu Zhoujie (Chairman), Mr. Yu Xiangjin
• Non-executive Directors: Ms. Zhou Cuiqiong, Mr. Chen Hanhong, Mr. Liu Dong
• Independent Non-executive Directors: Mr. Wu Hong, Mr. Wang Chunlin, Ms. Ma Sha

Conclusion

The supplemental information provided by Green International Holdings Limited offers greater clarity on the disposal of two loss-making beauty parlors. The strategic benefits, including cost savings and operational streamlining, are likely to be price-sensitive and may positively influence the company’s share value. Investors should closely monitor the company’s future financial statements for improvements in profitability and cash flow as a result of these disposals.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making any investment decisions based on the information provided herein.

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