CHUNCHENG HEAT has entered into an agreement to acquire several heat production assets from its controlling shareholder group
CHUNCHENG HEAT announced that it has signed an agreement with its controlling shareholder group to acquire several heat production assets, with a total price of RMB 210 million. This acquisition will promote resource integration between the group and the controlling shareholder, enhance the unified management and operational capabilities of heat production, strengthen market competitiveness, and reduce ongoing related party transactions with the controlling shareholder
According to the announcement from Zhitong Finance APP, CHUNCHENG HEAT (01853) stated that on June 16, 2025, the group has entered into the following agreements for the acquisition of several heat production assets from the controlling shareholder group: (a) the company entered into Asset Transfer Agreement One with Changre Group for the proposed acquisition, with a consideration of RMB 166 million; (b) a wholly-owned subsidiary of Yatai Heat entered into Asset Transfer Agreement Two with Changre Group for the proposed acquisition, with a consideration of RMB 41.709 million; and (c) the company entered into Asset Transfer Agreement Three with Jilin Heat for the proposed acquisition, with a consideration of RMB 476,000.
The announcement stated that the proposed acquisition involves the group acquiring target assets used for heat production from the controlling shareholder group. Upon completion of the proposed acquisition, the target assets will be fully operated, maintained, and supervised by the group's employees. The company believes that the proposed acquisition will promote the integration of heat production resources between the group and the controlling shareholder group, thereby strengthening the unified management and operation of heat production resources.
In addition, given that the target assets are located in the group's core heating market, the proposed acquisition is beneficial for the group to achieve an upgrade in strategic layout, improve the heating industry supply chain, and enhance market competitiveness.
Furthermore, upon completion of the proposed acquisition, the group will be able to enhance its capability in heat source assurance, significantly reduce the amount of ongoing related party transactions between the group and the controlling shareholder group, and minimize any potential competition between the group and the controlling shareholder group, thereby supporting the overall strategic development of the group
