Chinese state-owned enterprise Shanghai Whitecat Group Co. has decided to sell its 20 percent stake in Shanghai Hehuang Whitecat Co. for CNY 285 million via the Shanghai United Assets and Equity Exchange,The Beijing News reported, citing information it obtained from the exchange.

Hehuang Whitecat was jointly established by Shanghai Whitecat and Hutchison Whampoa Ltd., an investment holding multinational company founded by Hong Kong business magnate Li Ka-shing.

Whitecat Group is a leading household chemical producer in China boasting the greatest financial and technological strengths. Its former subsidiary Shanghai Whitecat Co. was renamed Shanghai Hehuang Whitecat after the transfer of an 80 percent shareholding to Hutchison Whampoa (China) Investment Co.in early 2006. Its main products are‘Whitecat’ and ‘Jiamei’ detergents and other related household chemical products.

Hehuang Whitecat currently has three shareholders — Hong Kong Household Chemicals Ltd.,Shanghai Whitecat Group and Hutchison Whampoa (China)Investment. Whitecat Group did not explain the reason for the share sale in the announcement it released on the exchange, and Hutchison Whampoa (China)Investment has not waived its right of first refusal.

Hehuang Whitecat has gone downhill in recent years, and has been insolvent since 2015, according to statistics from Shanghai United Assets and Equity Exchange.Its total assets were USD 166 million (CNY 1.1 billion) and total liabilities came in at CNY 1.4 billion as of the end of August. Its operating income and profit losses totaled CNY 1.2 billion and CNY 3.14 million last year respectively,with a net profit of CNY 21.328 million.