Xin Lang Cai Jing·2025-10-21 13:05Core Viewpoint - The company, Shuidafengye Energy, has agreed to acquire 100% equity of Guizhou Xingye Green Energy Technology Co., Ltd. for a total consideration of RMB 600 million, which includes cash payment and debt assumption, as a resolution to ongoing litigation [1][3]. Group 1: Acquisition Details - The acquisition involves a cash payment of RMB 216 million and the assumption of debts totaling RMB 384 million owed by the target company to the seller [1]. - The total consideration for the acquisition amounts to RMB 600 million [1]. Group 2: Target Company and Business Operations - Guizhou Xingye Green Energy Technology Co., Ltd. is primarily engaged in the maintenance management of photovoltaic power stations and electricity sales [1]. - The company has faced legal issues related to land use violations, resulting in the dismantling of a 100MW photovoltaic power station, which now operates at a reduced capacity of 65MW [2]. Group 3: Legal Context and Financial Implications - The litigation involves claims of approximately RMB 361 million from the seller, including losses from dismantling the power station and delayed electricity sales [2]. - The company anticipates significant compensation liabilities due to the litigation, particularly related to the dismantling losses of about RMB 253 million [3]. - The acquisition is viewed as a means to mitigate potential damages from the lawsuit and improve the company's credit rating by releasing assets currently under preservation orders [3]. Group 4: Strategic Benefits - The board believes that the acquisition will complement the company's existing business and enhance productivity and revenue sources [3]. - The company expects to achieve a pre-tax profit of approximately RMB 163 million upon completion of the acquisition, considering the debt waiver and the discounted acquisition price [3].