Merchant House International Limited (ASX:MHI) Announces Quarterly Activities Report
Financial Performance
Merchant House International Limited (ASX: MHI) has released its Quarterly Activities Report for the period ending 31 December 2024. The Company reported a cash balance of A$1,778,000 as of the end of the quarter, with sufficient reserves to meet upcoming liabilities.
Operational Updates
In January 2025, MHI confirmed the receipt of US$4,915,536 (approximately RMB 36,205,132) from the final settlement of its 33.79% interest in Tianjin Tianxing Kesheng Leather Products Company Limited. This follows the May 2024 agreement to sell this stake for approximately A$8,300,000. The Company had previously reported partial receipt of funds in July 2024, amounting to RMB 26,814,134 (approximately A$5,478,000).
Regarding AMI, which manufactures home textile products, operations ceased in September 2024 after sustained losses. MHI is now seeking to divest land, buildings, and equipment related to this business, although timing and proceeds from the sale remain uncertain.
Expenditure Summary
During the December quarter, MHI incurred total expenditures of A$2,003,000. This includes A$992,000 from AMI and A$465,000 in overheads. Payments of A$233,000 to related parties accounted for director salaries and fees.
The group initiated the process for a potential voluntary delisting from ASX following asset divestment and aims to return residual funds to shareholders.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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