Sailun cancels a wholly-owned subsidiary

On October 27, Sailun held a board meeting and decided to cancel the wholly-owned subsidiary Sailun Tire International Corp (Sailun International). Sailun International’s registered capital is US$1 million, and its registered address is in the British Virgin Islands. The business scope of this subsidiary includes import and export trade, warehousing and distribution, and project investment. Sailun stated that Sailun International’s cancellation would neither significantly impact the company’s overall business nor harm its and its shareholders’ interests.

Tyrepress learned that the Sailun Board of Directors passed Sailun International’s cancellation proposal in May 2020. At that time, Sailun’s reason was to optimise resource allocation and reduce operating costs. It is reported that Sailun International’s business has been transferred to Sailun (Hong Kong), another wholly-owned subsidiary, and has no substantial business activities.

However, the cancellation scheme changed in April 2021. In cancelling Sailun International, the relevant departments believed it necessary to consider adjusting the organisational structure and business model. Foreign policies were included in the evaluation criteria. Sailun thought that if they registered a similar company again after deregistration, many conditions needed to be met, which would take a long time. Therefore, the tyre manufacturer withdrew the cancellation proposal based on prudence.

On October 27, 2022, the Sailun Board of Directors restarted the cancellation of Sailun International. The explanation given by Sailun is that according to the future strategic plan and global business layout, Sailun International will no longer undertake any business and functions in the future. According to the data given by the tyre manufacturer, Sailun International has suspended almost all business activities since January 2021, and its operating income is 0 yuan.