Guangdong Liantai Environmental Protection (603797.SH) plans to sell 100% equity of Hunan Liantai and Shantou Liantai for 1.611 billion yuan.

Guangdong Liantai Environmental Protection (603797.SH) announced that the company plans to transfer 100% equity of Hunan Liantai and 100% equity of Shantou Liantai to Shangshi Zhejie, and the counterparty will pay the consideration for this transaction in cash. After the completion of this transaction, the listed company will no longer hold 100% equity of Hunan Liantai and 100% equity of Shantou Liantai. The listed company will still hold partial equity in certain controlled subsidiaries of Shantou Liantai, including 40% equity of Sunan Water Affairs, 40% equity of Subei Water Affairs, 39.50% equity of Xinxi Water Affairs, 39% equity of Chenghai Water Affairs, 39% equity of Guanbu Water Affairs, 39% equity of Chaoying Water Affairs, 15% equity of Chaohai Water Affairs, and 15% equity of Chengxi Water Affairs. The transfer price of Shantou Liantai is RMB 590 million, and the transfer price of Hunan Liantai is RMB 1.021 billion, totaling RMB 1.611 billion. Before this transaction, the listed company's main business was the investment, construction, and operation management of urban and rural domestic sewage treatment facilities, providing sewage collection, conveyance, and/or terminal sewage treatment services within the franchised areas and franchise periods authorized by local governments. The transaction targets are some of the listed company's sewage treatment project companies. After this transaction, it will help resolve the listed company's liquidity risk and debt repayment risk for principal and interest, provide sufficient funding guarantee for the listed company's sustainable and stable operation, and significantly reduce the scale of the listed company's accounts receivable, which will help reduce the erosion of future profits by credit impairment losses and improve the overall asset quality of the listed company. The listed company's main business will not change before and after this transaction.