On August 20, Gelonhui announced that jncec (00579.HK), on August 20, 2024, the company's wholly-owned subsidiary, JNCEC Hong Kong, entered into a purchase agreement with JNCEC International Australia. Pursuant to this, JNCEC Hong Kong agreed to sell and JNCEC International Australia agreed to acquire 40% equity of jncec in Australia, with a consideration including a delivery amount of approximately 0.183 billion Australian dollars and adjustment amount (if any).
After the completion of the sale, jncec Australia will remain a subsidiary of the company, and the financial performance of jncec Australia will still be consolidated into the company's comprehensive financial statements.
The target company is a limited liability company registered and established in accordance with Australian law and is indirectly wholly owned by the company through JNCEC Hong Kong. The target company is mainly engaged in investment holding business and currently holds 100% equity of New Glen Wind Power Project Company, Glen Photovoltaic Project Company, and Biyala Wind Farm Project Company. The New Glen Wind Power Project Company operates the Glen Wind Farm in New South Wales, the Glen Photovoltaic Project Company operates the Glen Solar Power Station in New South Wales, and the Biyala Wind Farm Project Company operates the Biyala Wind Farm in New South Wales.
Through the sale, the company can realize the return of overseas investments back to China and use the proceeds of the sale to repay the company's existing debts. The sale will enable the group to focus more on its main business in China, concentrate resources to enhance the group's competitiveness in the clean energy sector. The net proceeds from the sale (after deducting expenses related to the sale) are intended to be used to repay the company's existing debts due and to supplement the general operating funds required for the group's business development.