153.9 Million Yuan! GCL New Energy to Sell Subsidiary With 30MW PV Plant

PVTIME – On May 5, GCL New Energy Holding Limited disclosed an announcement on disposal of a subsidiary with solar power plant.

Suzhou GCL New Energy Investment Co., Ltd.(Suzhou GCL New Energy), an indirect subsidiary of GCL New Energy Holdings Limited (0451.HK), and Hunan Xinhua Water Conservancy and Electric Power Co., Ltd.(Hunan Xinhua) entered in to the fourth phase share purchase agreement on March 21, 2022. According to the agreement, the 90.1% equity interest held in Ningxia Shengjing Solar Power Technology Co., Ltd.(Ningxia Shengjing), a company established in the PRC with limited liability, which is directly owned as to 90.1% by Suzhou GCL New Energy and 9.9% by Qingdao Changsheng Ridian Solar Technology Co., Ltd.(Qingdao Changsheng​), an independent third party to GCL New Energy Holdings Limited, will be sold to Hunan Xinhua. Then the 9.9% equity interest in Ningxia Shengjing will be sold to Hunan Xinhua, after Suzhou GCL New Energy acquiring such equity interest from Qingdao Changsheng.

What is more, Ningxia Shengjing, the target company owns an operational solar power plant in China with grid-connected capacity of approximately 30MW, will be transferred to Hunan Xinhua the purchaser as well.

GCL stated that these transactions are important steps for it to achieve the “transformation and upgrade”development objective and transformation to an asset-light model. Upon this forth phase initial closing, the net cash proceeds from the transactions is considered to be approximately 153,913,000 yuan. The liabilities of GCL Group is expected to decrease by approximately 141,697,452 yuan. Meanwhile, 143,040,223 yuan of the cash derived from the transactions will be used for further repayment of debts, and the gearing ratio of GCL Group will decrease by about 0.8%, which effectively reducing its financial risks.