YUNNAN WATER (06839) plans to sell 100% equity of Kai Fa Xin Quan Tap Water (Guanyun) Co., Ltd. for approximately 248 million yuan.

Yunnan Water (06839) announced that on November 12, 2024, Kaisa Xinquan Public Utilities (a wholly-owned subsidiary of the company) (as the seller) and Guanyun County Water Group Limited (as the buyer) entered into a property transaction contract. Under this agreement, Kaisa Xinquan Public Utilities plans to sell 100% equity of Kaisa Xinquan Tap Water (Guanyun) Co., Ltd. to Guanyun County Water Group Limited for RMB 248 million. The group expects to make a pre-audited profit of approximately RMB 23.31 million from the sale. It is reported that the target company owns a water supply project and a tap water plant, with a daily production capacity of about 100,000 tons. Based on the company's strategic 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.