Datang Environment (01272.HK): Wholly-Owned Subsidiary to Sell Lvsi Project Assets for RMB76.53 Million
Newtimespace (newtimespace.com) reported: On June 26, 2026, Datang Environment Industry Group Co., Ltd. (1272.HK) announced that its wholly-owned subsidiary, Water Engineering Technology, entered into an asset transfer agreement with Jiangsu Lvsi Port Power Generation as the buyer. Water Engineering Technology conditionally agreed to sell, and the buyer agreed to acquire, the target assets for RMB76,528,456.74 (tax-inclusive).
The target assets comprise all assets under the Lvsi long-term contract energy management project, including 236 fixed asset items such as buildings, structures, ancillary facilities, and machinery and equipment located at the buyer's premises in Qintan Village, Lvsi Port Town, Qidong City, Jiangsu Province. As of the valuation benchmark date (June 30, 2025), the audited net book value and original book value of the target assets were RMB59,488,655.22 and RMB138,848,111.88, respectively. The appraised market value was RMB67,724,298.00 (excluding tax) as assessed by an independent Chinese valuer using the cost method.
The consideration was determined after fair negotiation with reference to the appraised market value. The buyer shall pay in two installments: 50% within one month of the agreement effective date, and the remaining 50% within five months thereafter, with the total payment period not exceeding six months.
As China Datang directly holds approximately 78.17% of the Company's issued share capital, Jiangsu Lvsi Port Power Generation is a connected person. As the applicable percentage ratio(s) exceed 0.1% but are below 5%, the disposal is subject to reporting and announcement requirements but exempt from circular and independent shareholders' approval requirements.
The Directors believe the disposal will enable the Group to optimize its asset structure, revitalize existing assets, recover investment funds, and improve overall asset utilization efficiency. The Group is expected to record an actual gain of approximately RMB13,900,000 (pre-tax) after deducting related expenses. The proceeds are intended for general working capital and other business investments.
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