On December 20, Gelonghui Water (03768.HK) issued an announcement. The company has received a notice from the Kunming Joint Property Exchange regarding the identity of the successful bidder of the company's sale of 100% of Hongyu Thermal Power's shares. According to relevant laws and regulations and the relevant trading rules of the Kunming Joint Property Exchange, the company (as the transferor), Hunan Zhihong Paper (as the transferee) and Hongyu Thermal Power (as the target company) entered into a property rights transaction contract on December 20, 2023. According to this, the company conditionally agreed to sell and the transferee conditionally agreed to purchase 100% of Hongyu Thermal Power's shares. The costs include the equity transfer price of RMB 43.587 million and the principal amount of the loan provided by the company to Hongyu Thermal Power of RMB 502 million and interest. The loan interest is based on the amount calculated as of the actual return date, and the total cost is expected to not exceed RMB 48,756 million.
The target company, Hongyu Thermal Power, is a limited liability company incorporated in China on March 12, 2008. Its registered capital is RMB 30 million, and it is mainly engaged in electricity supply, heat production and sales.
Carrying out sales matters helps the company focus more on its main business. At the same time, it also enables the company to recover investment funds in advance, so that the company has more flexibility when searching for and participating in other suitable investment opportunities.