According to Zhitong Finance App, Beijing Holdings Environmental Group (00154) issued an announcement. The board of directors passed a resolution to transfer target rights, that is, 51% of the shares of the target company Beijing Beijing Holdings Ecological Construction Group Co., Ltd. held by Beijing Holdings Environmental Protection Group Co., Ltd. (an indirect wholly-owned subsidiary of the group).
Since the company is a state-owned enterprise, the target rights are state-owned property rights. According to relevant Chinese laws and regulations governing the transfer of state-owned property rights, the transfer of state-owned property rights must be publicly listed on an approved property rights exchange. The potential sale will be carried out on the Beijing Stock Exchange at a listing price of RMB 52.823,400. After the intended transferee is successfully identified as the transferee, a property rights transaction contract will be concluded with the transferor in accordance with the relevant rules and regulations of the Beijing Stock Exchange.
The target company is mainly engaged in the development of ecological garden projects. It uses an asset-light operation model. The garden business has shrunk sharply in the past two years, and the garden business has shrunk sharply, showing large losses. Since the external market is insufficient to support the development of the garden business, the target company plans to transform the ecological environment oriented development (EOD) model, participate in ecological restoration projects, and explore new market areas. However, the investment and financing requirements for ecological restoration EOD projects are huge.
The company considers that the target company's existing business has not completely escaped continuous losses, that the new business model to be transformed has a significant risk of advance repayment, and that the synergy with the group's main business is not obvious. Potential sales matters can allow the group to better focus on its main business, focus the group's resources on continuously expanding the solid waste market, and develop high-end solid waste treatment business.