*ST Kerry (002072): The Subsidiary Intends To Transfer The 100% Stake In Huoerguosi And Shenzhen.

*ST 002072.SZ announces that the company's subsidiary, Beijing Erli, holds 100% of the 100% stake in Huoerguosi Technology Co., Ltd. (Huoerguosi), and Beijing's internetwork Technology Development Limited (Beijing express). It stands for 100% stake in Beijing intercom (Shenzhen) network technology development Co., Ltd. ("Shenzhen express") through its subsidiary.

In order to streamline the structure of the company and save management costs, it was transferred to Shenzhen Qian Yuan Hongsheng Business Consulting Co., Ltd. (the two companies: the company to be transferred), to be transferred to Beijing Qian Yuan Hongsheng Business Consulting Co., Ltd. by the subsidiary company of Huoerguosi and sun company. The transfer price is 1 yuan. After the completion of the equity transfer, the company no longer holds the shares of the company to be transferred.

Huoerguosi's 100% stake, as of December 31, 2018, total assets of 1 million 737 thousand and 800 yuan, net assets -38.63 million yuan, net profit of -14.98 million. The 100% equity interest of Shenzhen Telecom, as of December 31, 2018, has a total assets of 6 million 15 thousand and 300 yuan, a net asset of -321.65 million yuan and a net profit of -75.38 million yuan.

Up to now, Huoerguosi and Shenzhen have no actual operation. Through the transfer of shares, it helps to improve the efficiency of internal management, optimize asset allocation, focus on the core business development of the company, reduce the negative factors of the company, and better achieve the strategic layout of the company. There is no risk of equity withdrawal in stock transfer.

The company does not exist for Huoerguosi and Shenzhen to provide security, entrust its financial management, and Huoerguosi and Shenzhen to occupy the funds of listed companies. After the equity transfer, the company will no longer include Huoerguosi in the company's annual financial statements in 2019. Beijing will no longer incorporate Shenzhen into the 2019 annual financial statements. The company will earn about about 3000000 yuan for the company's financial situation in 2019. This data is temporarily estimated by the company's finance department and will ultimately be based on the annual audit data of the company in 2019.