GCL New Energy (00451) subsidiary proposed 90,379,800 yuan sale of 7 operating photovoltaic power stations will reduce liabilities of about 354 million yuan

2022-07-11 0 By

GCL New Energy (00451) announced that the company’s indirect subsidiaries GCL Suzhou New Energy and GCL Suzhou Development (as the seller) and Jiangsu Heseng (as the buyer) entered into the share purchase agreement with the target companies (as the target company) on March 16, 2022.The sellers have agreed to sell to the buyer all equity interests in GCL Gaoyou, NANTONG Haide New Energy, GCL Pizhou, Suqian Green Energy Power and Dingyu Suzhou Industrial Park;And 60% of JIANGSU GCL Seaside New Energy.The total cost is about 90,379,800 yuan.The target companies include: Gaoyou Xixin Photovoltaic Power Co., LTD., Jiangsu Xixin Coastal New Energy Technology Development Co., LTD., Nantong Haide New Energy Co., LTD., Pizhou Xixin Photovoltaic Power Co., LTD., Suqian Green Energy Power Co., LTD., Suzhou Industrial Park Dingyu Solar Power Co., LTD.The target companies have a total of seven operational pv plants located in China with a total grid-connected capacity of approximately 85 MEGAwatts.The buyer, Jiangsu Hesheng, is mainly engaged in power generation, transmission and power supply businesses and engineering and construction activities in China.In line with its “transformation and upgrading” development goal, the company continues to promote the transformation of the asset-light model.After the closing of the transaction, the target company will no longer be a subsidiary of the Group and the profits and losses and assets and liabilities of the Target Company will no longer be recorded in the Consolidated financial statements of the Group.The group’s liabilities will be reduced by about 354 million yuan.At the same time, the net cash proceeds from these transactions are expected to be approximately RMB 311 million, which the Company intends to use to repay its debt.Calculated on the basis of the Group’s unaudited financial statements as at 30 June 2021, the group’s asset-liability ratio will be reduced by approximately 0.6%, thus effectively reducing financial risk.