Gelonghui, March 19, 丨 Chuncheng Thermal Power (01853.HK) announced that on March 19, 2024, Yatai Thermal Power, a wholly-owned subsidiary of the company, signed an asset transfer agreement with Chuncheng Investment, the controlling shareholder of the Company. According to this, according to the terms and conditions of the asset transfer agreement, Yatai Thermal Power agreed to buy, while Chuncheng Investment agreed to sell the assets at a cost of RMB 38.95 million.” “Assets” refers to Chuncheng's investment in a number of buildings, coal-fired boilers, land use rights and ancillary equipment currently used for heat production.
Yatai Thermal Power is a limited company established in China on October 30, 1998. It is a wholly-owned subsidiary of the Company. Yatai Thermal Power is mainly engaged in the heating service business. Its heating model uses a heating method combining the purchase of cogeneration heat sources with the purchase of coal-fired boiler heat sources. It is a large-scale specialized heating enterprise integrating heating, heat transmission, and grid construction.
Chuncheng Investment is a state-owned company established in Changchun City, China on April 28, 1998. It is wholly owned by the State-owned Assets Supervision and Administration Commission of the Changchun Municipal People's Government. Chuncheng Investment and its subsidiaries are mainly engaged in property management, water supply, pipeline manufacturing, heat production and supply, industrial steam sales and financial investment.
The proposed acquisition enables Yatai Thermal Power to directly own heat production assets to meet the needs of Yatai Thermal Power customers. Therefore, the Group believes that the proposed acquisition will further enhance the Group's heating efficiency, optimize the Group's heating business structure, increase heat source guarantee capabilities, reduce continuous connected transactions between the Group and Chuncheng Investment Group, and minimize potential competition between the Group and Chuncheng Investment Group, thereby contributing to the Group's overall strategic development.