JOYAS International Holdings said it has entered into an agreement to sell loss-making subsidiary Joyas Group for HK$15 million (S$2.67 million).
Upon completion of the disposal, Joyas Group will cease to be a subsidiary of the company, and the jewellery and metal gifts business division would no longer form part of the group. The company's businesses will comprise the nickel distribution and trading business, and the financing business.
Joyas International explained that since fiscal 2012, the subsidiary has been making loss and its results accounted for 58 per cent of the group's net loss in fiscal 2016.
Market conditions for this subsidiary's jewellery and metal gifts business have been increasingly challenging, with competitors from China and overseas markets continuing to exert pressure on profit margins and pricing, it added.