Summary by Moomoo AI
Cornerstone Technologies Holdings Limited (Cornerstone Technologies) completed the sale of its flagship printing business subsidiary at the end of fiscal year 31 December 2023. The subsidiary was sold to Castle Noble International Limited, owned by Executive Director and Controlling Shareholder Leung Zihao of Kaoshi Technologies, at a symbolic price of HK$1. The transaction generated revenues of HK$2,860 million and generated HK$1,667 million in net cash outflows. Subsidiaries sold include Cornerstone EV Holdings Limited, which provides electric vehicle charging solutions and sells charging systems. This move is to enable Cornerstone Technology to focus on its core EV charging business. Prior to the sale, the financial position of the subsidiary consisted of HK$5,365 million in liquid assets, HK$1,312 million in current liabilities and HK$5,210 million in net equity loss attributable to the owners of the company. The subsidiary generated revenues of HK$1,049 million in the same year, with a combined loss of HK$92 million and net cash used in operating activities of HK$14,049 million.