On October 16, Glorious Times reported that CNNC International (02302.HK) announced that on October 16, 2024, the company (as the seller) entered into a sale and purchase agreement with CNNC Finance (as the buyer). As per this, the company agreed to sell and CNNC Finance agreed to buy the shares for sale (equivalent to all the issued share capital of the target company CNNC International (Hong Kong) Co., Ltd.), priced at the completion price (i.e. preliminary price of 1.67 hundred million Hong Kong dollars, subject to accounting adjustments), but subject to audit accounting adjustments and the terms and conditions of the sale and purchase agreement.

The target company holds 7.55% equity in CNNC Leasing. CNNC Leasing is controlled by CNNC (the ultimate parent company) and its subsidiaries (but excluding this group) ('parent group'). CNNC Leasing is mainly engaged in providing financing leases and financial guarantees for clean energy-related projects (including but not limited to nuclear energy, wind energy, and hydropower).

The directors believe that the sale of the target company (which holds a minority interest in CNNC Leasing, which is unrelated to the company's main business) is a prudent and timely opportunity for the group to realize its investments at a fair and reasonable price. Despite CNNC Leasing generating dividend income over the past few years, it is considered a non-core asset, not in line with the group's focus on uranium resources. The directors believe that the sale will allow the group to more effectively reallocate resources to advance its core business and implement its long-term strategy in uranium trading and other related business activities.

The expected sale transaction can also improve the group's working capital, enabling more effective resource allocation. Based on the preliminary price and after deducting estimated professional fees directly attributable to the sale transaction, as well as other related expenses and taxes, the estimated net proceeds from the sale are approximately 164.4 million Hong Kong dollars. This amount will be used to strengthen the group's operating capital, enhance its financial capacity, and further develop the group's uranium-related business.