Yunnan Water (06839) announced that on November 12, 2024, Hyflux New Spring Utilities (a wholly-owned subsidiary) (as the seller) and Guanyun County Water Affairs Group Co., Ltd. (as the buyer) entered into an asset trade contract. Accordingly, Hyflux New Spring Utilities intends to sell 100% equity of Hyflux New Spring Water (Guanyun) Co., Ltd. to Guanyun County Water Affairs Group Co., Ltd. for a consideration of RMB 0.248 billion. The group expects to obtain unaudited gains of approximately RMB 23.31 million from the sale.
It is reported that the target company owns a water supply project and a water treatment plant, with a daily production scale of approximately 0.1 million tons.
Based on the company's global strategy development and internal management needs, the company has decided to proceed with the sale. The directors believe that the sale will supplement the company's operating funds to support its existing business operations, thereby alleviating the group's current financial difficulties, and reducing the company's debt level and asset-liability ratio.
