According to the Zhitong Finance App, China Hengyouyuan Group (08128) announced that on October 27, 2023, the company signed an agreement with the seller (GBT Green Energy Holding Group Limited) and the seller's guarantor. The seller conditionally agreed to sell 80% of the total issued share capital of the target company (Hydrogen Energy Technology Limited) at a maximum total cost of HK$70.2 million.
According to the adjustment mechanism, the total cost payable for shares to be sold shall not exceed HK$70.2 million. The company must pay the seller in two installments as follows:
(1) Of this amount, HK$103.68 million (the first stage cost, accounting for about 14.77% of the cost) was paid by the company within 10 business days after the completion date by allocating and issuing consideration shares at an issue price of HK$0.08 per share (that is, 129.6 million new shares).
(2) The maximum amount of HK$598.32 million (second-stage cost, accounting for about 85.23% of the cost) will be paid by the Company by allocating and issuing cost shares at an issue price of HK$0.08 per share within 7 business days after the auditors have completed the audited financial statements of China Hydrogen New Energy, and will be adjusted according to the adjustment mechanism.
As of the date of this announcement, the target company is undergoing restructuring. The main steps of the restructuring will include the establishment of a wholly foreign-owned enterprise; and the acquisition of all shares of China Hydrogen New Energy after the establishment of the wholly foreign-owned enterprise. After the restructuring is completed, the target company will become the holding company of the target group.
According to reports, China Hydrogen New Energy is a limited company established in China. China Hydrogen Xinneng focuses on hydrogen fuel cell powertrain systems for the automotive industry, and has independent core technology and intellectual property rights in the design, simulation, control, integration, and manufacturing of this system. Using its technical advantages and market resources in the fields of renewable energy, hydrogen energy and fuel cells, China Hydrogen New Energy is committed to developing into a complete and efficient hydrogen fuel cell solution provider for the automotive industry. China Hydrogen New Energy provides highly reliable and cost-effective hydrogen fuel cell powertrain solutions that meet national standards and application requirements. Currently, the technical know-how and intellectual property rights of China Hydrogen New Energy have core advantages in the following areas: integrated and reliable hydrogen fuel cell powertrain systems; intelligent control systems for hydrogen fuel cell powertrain systems; low-temperature unassisted rapid starting technology; customized development of multi-scenario and cost-effective hydrogen fuel cell powertrain systems.
China Hydrogen New Energy will only start generating revenue in October 2023. There was no revenue generated from January to August 2023. According to the eight months ended August 31, 2023, China Hydrogen & New Energy obtained losses before and after tax of approximately RMB 1,921,000.