Yunnan Water (06839) announced that on June 24, 2024, the company (as the seller) entered into the following contracts with the buyer (Wuxi Pinghu Clean Water Technology Co., Ltd.): (a) Wuxi Zhongfa property rights trading contract under which the company agreed to sell and the buyer agreed to purchase 75% equity interest of Wuxi Zhongfa for a consideration of RMB 95,900,600 yuan; (b) Wuxi Yunshui property rights trading contract, under which the company agreed to sell and the buyer agreed to purchase 100% equity interest of Wuxi Yunshui for a consideration of approximately RMB 57,046,000 yuan; (c) Ehu Yunshui property rights trading contract, under which the company agreed to sell and the buyer agreed to purchase 100% equity interest of Ehu Yunshui for a consideration of RMB 18,440,300. After the completion of the sale, the company will no longer own any equity interest in the sold entities.
Based on the company's global strategy and internal management needs, the company decided to carry out the sale. The directors believe that the sale will alleviate the group's current financial difficulties and reduce the company's debt level and asset-liability ratio.