集团认为，出售事项将为集团提供释放所持天然气发电厂价值的机会，补充现时营运资金以及为集团未来业务发展提供实时可用资金，将有助于在机会出现时，提高本公司的谈判能力，以及缩减交易时间和成本。On December 30, 2023, Gelonghui announced that PUXING ENERGY (00090.HK) has entered into an equity transfer agreement with the buyer, Shunfa Hengneng Co., Ltd., and the target company, under which the seller, PUXING ENERGY (Hong Kong) Limited (the company's directly wholly-owned subsidiary), conditionally agrees to sell and the buyer conditionally agrees to acquire 51% equity of Zhejiang PUXING DENENG Natural Gas Power Generation Co., Ltd., for a consideration of RMB 0.143 billion (subject to the terms and conditions of the equity transfer agreement).
As of the date of this announcement, the company holds all equity of the target company through the seller and Lantian Power Plant (both are wholly-owned subsidiaries of the company). Upon completion of the delivery and registration process, the target company will be directly owned 51% by the buyer, 30% by Lantian Power Plant, and 19% by the seller, thus no longer being a subsidiary of the company.
The group is primarily engaged in the construction, operation, and management of power plants using natural gas as fuel. The reform of the electricity spot market and the decline of capacity electricity prices in Zhejiang Province have put the group's operating model and profitability to the test. The company's management team is actively researching and exploring new forms of operating models, striving to find new market fit, and committed to achieving a strategic transformation. When opportunities arise, the plan is to utilize the proceeds from the sale for the development of energy-related businesses and/or other upstream and downstream businesses that can create synergies with the company's main business and align with the company's strategy through acquisition or investment in relevant businesses or engaging in similar businesses.
The group believes that the sale will provide an opportunity to release the value of its natural gas power plants, supplement current working capital, and provide readily available funds for the group's future business development. This will help enhance the company's negotiating capability when opportunities arise and reduce transaction time and costs.
