Glonghui November 24 | Shengli Pipeline (01080.HK) announced that on November 24, 2023, the seller (an indirect wholly owned subsidiary of the Group) and the buyer Hangzhou Hanyue New Energy Co., Ltd. signed a share transfer agreement. According to this, the seller conditionally agreed to sell and the buyer conditionally agreed to buy and sell shares (equivalent to 2% of the target company Xinfeng Energy Group Co., Ltd.) at a cost of RMB 10.78 million.
Upon completion, according to relevant accounting standards, the Group will retain approximately 19.95% of the shares in the target company, and lose significant influence over the target company as a result.
The target company is mainly engaged in the manufacture and sale of new energy power equipment in China, sales of wind farm related equipment, wind power technology services, wind power generation technology services, sales of wind power generation units and components, and research and development of emerging energy technologies. In addition to its own business, the target company also directly holds shares in a number of other companies.
The company believes that the cash inflow from the sale will improve the company's overall working capital situation, and expects that the net proceeds from the sale will be used as the group's working capital to provide financial support for its main business development and new business opportunities, thereby enhancing the profitability and sustainability of the group's business and improving shareholder returns.