On July 22, Capital State learned that Hong Kong stock companiesXiexin new energy(00451.HK) announced that after the trading session on July 21, 2021, the company's indirect subsidiaries Jiangsu Xiexin (as seller), Yixing and Chuang (as buyer) and the target company (as target company))Enter into the first batch of such share purchase agreements.
Under the first batch of these share purchase agreements, the seller agreed to sell all the shares of the target companies to the buyer and the total consideration under the first batch of these share purchase agreements was RMB 481 million. It is estimated that the Group will realize a net loss of approximately 50.4949 million yuan (RMB, the same below) on the first tranche of the sale.
Upon completion of the first batch of disposals, the target companies will cease to be subsidiaries of the company. Therefore, after the registration completion date, the financial performance of these target companies will no longer be consolidated in the company's financial statements.
It is understood that these target companies have a total of 28 operating photovoltaic power stations in China, with a total grid-connected capacity of about 301 megawatts.
With regard to the use of the proceeds from the sale, Xiexin New Energy said that after the completion of the transaction, the group's debt will be reduced by about 1.242 billion yuan. At the same time, more than 1.156 billion yuan of cash from these transactions will be used to further repay debts. After referring to the audited financial statements of the group on December 31, 2020, the group's asset-liability ratio will be reduced by about 1%, thus effectively reducing financial risk.
Data show that Jiangsu Xiexin is wholly owned by Suzhou Xiexin New Energy Investment Co., Ltd., and Suzhou Xiexin New Energy Investment Co., Ltd. is an indirect subsidiary of the company. Jiangsu Xiexin is mainly engaged in the development, operation and management of photovoltaic power stations in China.
In the secondary market, as of press time, Xiexin New Energy reported HK $0.38, an increase of 11.76%.