Sri Trang Gloves establishes new unit in China

This will be for gloves packing and distribution.

SGX-listed Sri Trang Gloves has announced the formation of Shidong Medical Equipment (Suzhou) Co., Ltd., its business in the People's Republic of China that will focus on gloves packing and distribution. 

In a regulatory filing, Sri Trang said the business is under its wholly-owned subsidiary Shidong Shanghai Medical Equipment Co., Ltd. (SDME). It has a registered capital of $552,486 (RMB3m), whilst its source of funds is cash from operation of SDME.

“The establishment of a new subsidiary in the People's Republic of China is not classified as a connected transaction but it is classified as an asset acquisition,” Sri Trang Gloves said. “However, this transaction is also classified as an acquisition of investment in other company which causes other company to become a subsidiary of the listed company.”

S$1 = RMB5.43