Qingdao, China – Tire maker Sailun is to sell its fully-owned subsidiary Kings Road Tyres Group (KRT Group) at £500,000 to KRT Holdings, a company set up for the transaction and controlled by UK’s Resolve Invest Ltd.
According to Sailun’s filing on the Shanghai Stock Exchange in November, KRT Group is a Burton upon Trent-registered UK tire sales and tech services firm.
Over the first six months KRT Group had €5 million (40 million yuan) net loss on €22 million revenue.
Sailun acquired KRT Group in 2014 when it was deeper in the red at a symbolic price of £1, according to its filing at the time.
“KRT Group’s operation over the past few years hasn’t reached the expectation,” said the November filing. “It cannot provide palpable support for our company’s European market strategies.”