SFSY ENERGY (00750) intends to acquire 100% equity of Guizhou Xingye Green Energy Technology.

SFSY ENERGY (00750) announced that on October 21, 2025, the company, the seller, and the target company (Guizhou Xingye Green Energy Technology Co., Ltd.) entered into a share transfer agreement. According to this agreement, the company agreed to acquire and the seller agreed to sell a total of 100% equity of the target company for a cash consideration of RMB 216 million. In addition, the company agreed to assume and repay in cash the debt owed by the target company to the seller, totaling RMB 384 million. Therefore, the total consideration for the acquisition is RMB 600 million. The target company is a limited company established in China, mainly engaged in the maintenance and management of photovoltaic power stations and electricity sales business. The share transfer agreement is proposed to settle a lawsuit. Seller A (Beijing Jingyuntong Technology Co., Ltd.) and the target company (as the plaintiff) filed a lawsuit against Shuifa Green Energy (as the defendant) in 2023 for alleged violations of the EPC contract. According to the EPC contract, the parties had agreed (including) that the group would provide EPC services to the target company at a contract price of approximately RMB 705 million, and Seller A would provide a entrusted loan to the target company of approximately RMB 343 million. According to the EPC contract, Shuifa Green Energy had committed to completing all government approval procedures and grid connection procedures and agreed to compensate Seller A for any losses due to land occupation issues. Notifications were issued to the target company in 2020 and 2022 for unauthorized use of 800 mu of agricultural land. In 2021 and 2022, the facilities of the 100MW photovoltaic power station in Wangjiazhai, Liupanshui City, related to the above agricultural land, were dismantled successively, and the project has since only been operating at a capacity of 65MW. Seller A and the target company claim approximately RMB 361 million in the lawsuit, including: (i) dismantling the station with losses of approximately RMB 253 million; (ii) electricity sales losses of approximately RMB 57 million; (iii) grid connection delay liquidated damages of approximately RMB 34 million; (iv) interest; (v) costs. According to legal advice from the group's Chinese legal advisers, considering the evidence and facts, the group is likely to bear significant compensation liability in the lawsuit (especially losses of approximately RMB 253 million due to dismantling the station). The company believes that the acquisition essentially represents the cancellation of the transaction under the EPC contract, and the company only needs to acq...