Ko Yo Chemical (Group) Agrees To Sell 90% Stake In Jiangsu Bluestar Green Material

What happened

Ko Yo Chemical (Group) said a unit agreed to sell a 90% stake in Jiangsu Bluestar Green Material for RMB27 million. The company expects an unaudited net gain on the disposal of approximately RMB86.8 million.

Confirmed

Global impact / market context

Selling most of this subsidiary brings in RMB27 million of cash and removes part of the business from Ko Yo's books. The expected RMB86.8 million gain, which is an accounting profit rather than cash received, could lift reported earnings.

Analyst inference

For investors, the deal is a small disposal that changes the company's asset mix and may free up cash for other uses. The large gap between the sale price and the expected gain suggests the stake carried a low book value.

Analyst inference

What to watch

1. The deal value is RMB27 million for a 90% stake, and the expected unaudited net gain on disposal is about RMB86.8 million. Confirmed
2. Watch for completion of the sale and any later disclosure on how Ko Yo Chemical plans to use the RMB27 million in cash proceeds. Proposed
3. Track whether the disposal is completed and booked as expected, since the gain is unaudited and could change reported profit and the company's remaining business mix. Analyst inference

Evidence

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