Heng Tai Holdings Limited (ASX: 00197) has announced a proposed transaction involving its wholly-owned subsidiary.

The company's subsidiary, Fiorfie Trading Limited, has entered into an agreement to sell the entire issued share capital of Shihong Limited to Mr. Lin Guoxing, the company's Board Chairman, Executive Director, and Chief Executive Officer, for a total consideration of HK$54 million.

In a related move on the same date, the company's wholly-owned subsidiary, Shanghai Runxin, acting as the lessee, entered into a sale and leaseback agreement with Shanghai Shifeng Industrial, which acted as the lessor.

Under the terms of this agreement, Shanghai Shifeng Industrial has conditionally agreed to lease the property back to Shanghai Runxin for a period of three years, commencing from the start date, with an annual rental of RMB 5.76 million.

As of the announcement date, Shanghai Shifeng Industrial is a direct wholly-owned subsidiary of the target company and is primarily engaged in investment holding.

The property in question, which is directly owned by Shanghai Shifeng Industrial, is located at No. 1-5, Lane 1199, Jidai Road, Minhang District, Shanghai, China, and has a gross floor area of approximately 21,820.58 square meters.

This property is primarily utilized by the group as a logistics center supporting its fast-moving consumer goods trading and agricultural products businesses.