SYEP plans to sell 100% equity of Shengze Environment and Longhai Water for a price of 382 million yuan

According to the announcement from Shengyuan Environmental Protection (300867.SZ), the company plans to sign a share transfer agreement with Fujian Zhongmin Water Investment Group Co., Ltd. (referred to as "Zhongmin Water"). The agreement stipulates that the company will transfer 100% equity of Quanzhou Shengze Environmental Engineering Co., Ltd. (referred to as "Shengze Environmental") and Fujian Shengze Longhai Water Co., Ltd. (referred to as "Longhai Water") for a total transaction price of 382 million yuan. After the transaction is completed, the company will no longer hold shares in Shengze Environmental and Longhai Water.

The announcement shows that Shengze Environmental operates the Baozhou Wastewater Treatment Plant, Beifeng Wastewater Treatment Plant, and Anxi Wastewater Treatment Plant, all of which adopt the BOT business model. The Baozhou Wastewater Treatment Plant has a treatment capacity of 150,000 tons/day, with effluent water quality standards meeting Class IV surface water standards; the Beifeng Wastewater Treatment Plant has a treatment capacity of 45,000 tons/day, with effluent water quality standards also meeting Class IV surface water standards; the Anxi Wastewater Treatment Plant has a treatment capacity of 60,000 tons/day, with effluent water quality standards meeting Class A of urban wastewater treatment plants.

The announcement states that this transaction will help to divest the domestic sewage treatment business, reduce management scope, achieve management focus, and concentrate human, material, and financial resources to develop a new health industry centered on raw material pharmaceutical taurine and its derivatives, while consolidating the existing core business