May 7, 2007

HK-listed China Force Oil to sell China Force Xiamen

China Force Oil & Grains Industrial Holdings Co Ltd said it has agreed to sell its wholly owned subsidiary, China Force Oils & Grains Xiamen Ltd (China Force Xiamen), to independent third party Fairwill International Co Ltd for RMB 24 million.

China Force Xiamen is principally engaged in refining, storage, transit and sale of edible oils.

The sale would yield proceeds of RMB 23 million, which the group said would be used for its capital.

Depressed market conditions has caused China Force Oil & Grains Industrial Holdings to suffer high losses in its oil refining business for the past two years.

The company has now decided to shift operations to become a producer and supplier of edible oils in China.