SICHUAN EN INV (01713) plans to sell about 49.0% equity interest in Pingshan Jinping.

SICHUAN EN INV (01713) announced that on February 27, 2025, Pingshan Power (a wholly-owned subsidiary of the company) entered into a share transfer agreement with Jin Jiao Real Estate Development. Pingshan Power agreed to sell, and Jin Jiao Real Estate Development agreed to purchase approximately 49.0% of the equity of Pingshan Jinping for a consideration of RMB 12.02 million. Before the completion of the share transfer, Pingshan Power held approximately 49.0% of the equity of Pingshan Jinping. After the completion of the share transfer, the group will no longer hold any equity in Pingshan Jinping. In 2024, the Energy Investment Group approved several work plans, including but not limited to classifying and managing loss-making legal entities, streamlining the management levels and numbers of legal entities, and divesting non-core businesses. According to the above plan, Pingshan Jinping was allowed to be deregistered before June 30, 2025. To promote and accelerate the implementation of the above work plan, Pingshan Power and Jin Jiao Real Estate Development agreed that Jin Jiao Real Estate Development would acquire the equity held by Pingshan Power in Pingshan Jinping before the deregistration. Over the years, Pingshan Jinping has been profitable from real estate projects and distributed profits to Pingshan Power and Jin Jiao Real Estate Development based on their respective shareholding ratios. The directors believe that the share transfer will allow the company to recoup its investment in Pingshan Jinping (whose real estate project has been completed) and better allocate its financial resources. The share transfer is expected to result in a book loss (subject to final audit) mainly due to the reserve risk guarantee held by Pingshan Power deducted from the price and the selling price of Pingshan commercial real estate. If fully recovered, the amount will offset the estimated book loss. The consideration will be used for the group's general operating funds and business development. In view of the above, the directors (including independent non-executive directors) believe that although the proposed transaction under the share transfer agreement is not part of the company's normal course of business, it is conducted on normal commercial or better terms; and the terms and conditions of the share transfer agreement are fair and reasonable and in the overall interests of the group and shareholders.