On December 31, Gelonghui announced that YUNNAN WATER (06839.HK) has signed a perpetual bond agreement with the company's controlling shareholders (Kanglv Group and Eco-friendly Group) on December 31, 2024. Accordingly, Kanglv Group and Eco-friendly Group agreed to convert their respective ordinary debts into perpetual debts.
The signing of the perpetual bond agreement between the company and its controlling shareholders is beneficial for improving the company's capital structure, lowering the debt-to-asset ratio, and enhancing the ability to resist risks and financial stability. The Board of Directors believes that the perpetual bond agreement and the proposed trades under it are in the overall interest of the company and its Shareholders.