On January 7, China National Complete Plant Import & Export Corporation Limited released a draft report on its proposed issuance of shares to purchase assets and raise supporting funds involving a related-party transaction. The company plans to acquire 100% of the equity interest in Zhongji Jiangsu Clean Energy Co., Ltd. from China National Technical Import & Export Group Co., Ltd. through the issuance of shares, while simultaneously raising additional funds to be used for project construction and the replenishment of working capital.
In this transaction, Zhongji Jiangsu was appraised at RMB 115.3657 million. Taking into consideration an additional paid-in capital contribution of RMB 36.0972 million made by China National Technical Import & Export Group after the valuation benchmark date, the parties agreed to set the final transaction price of the target asset at RMB 151.4629 million.
According to the transaction plan disclosed in the draft report, the share issuance price for the asset acquisition is fixed at RMB 11.19 per share. The total number of shares to be issued is estimated at 13,535,558, accounting for approximately 3.86% of the company’s total share capital after the completion of the share issuance for the asset purchase (excluding the impact of the supporting fund-raising).
As the transaction counterparty, China National Technical Import & Export Group, and China National Complete Plant Import & Export Corporation Limited are both enterprises controlled by China General Technology (Group) Holding Co., Ltd., the transaction constitutes a related-party transaction. However, it does not constitute a major asset restructuring or a backdoor listing.
Public information shows that Zhongji Jiangsu was established in 2021. Its core business focuses on the investment, development, and operation of commercial and industrial (C&I) user-side energy storage projects and falls within the energy-saving technology promotion and services sector. The company primarily adopts an Energy Management Contracting (EMC) model, under which it provides energy storage and charging–discharging services to C&I users and generates revenue by capturing the price spread between peak and off-peak electricity tariffs.
China National Complete Plant Import & Export Corporation Limited stated that in recent years, its traditional core businesses have come under pressure due to the external operating environment and have remained in a loss-making position. The proposed transaction is intended to implement the company’s green development strategy by entering the C&I user-side energy storage sector through the acquisition of Zhongji Jiangsu, thereby cultivating new sources of business growth.
Following the completion of the transaction, the company plans to leverage its extensive experience in international engineering contracting and its overseas market channels, in combination with Zhongji Jiangsu’s energy storage technologies and operational capabilities, to promote the overseas expansion of its energy storage business. This is expected to accelerate the company’s transformation from a traditional “engineering contractor” into an integrated service provider encompassing investment, construction, and operation.
At present, the transaction remains subject to review and approval by the Shenzhen Stock Exchange and registration with the China Securities Regulatory Commission before it can be implemented.
Source：EnergyTrend