Puxing Energy Limited announced two equity transfer agreements on 30 March 2026 that will see the group exit Zhejiang Puxing Deneng Natural Gas Power Co., Ltd. (“Deneng”) and Zhejiang Puxing Jingxing Natural Gas Power Co., Ltd. (“Jingxing”). The buyer in both transactions is SHUNFA HENGNENG Corporation, a Shenzhen-listed company ultimately controlled by the same ultimate shareholder as Puxing Energy, rendering the deals connected transactions under Hong Kong Listing Rules.
Deneng Disposal • Puxing Neng (HK) Limited and Zhejiang Puxing Bluesky Natural Gas Power Co., Ltd. will sell their combined 49 % stake in Deneng for RMB113.34 million (approximately HK$128.07 million). • Deneng posted 2025 revenue of RMB240.99 million and net profit of RMB40.69 million; audited net assets stood at RMB231.28 million. • Upon completion, Puxing Energy will cease to hold any interest in Deneng, which operates two gas-fired plants totaling 342.15 MW and 200 t/hour heating capacity.
Jingxing Disposal • Puxing Xing (HK) Limited will dispose of 100 % of Jingxing for RMB146.86 million (approximately HK$165.95 million). • Jingxing recorded 2025 revenue of RMB35.61 million and net profit of RMB3.72 million; audited net assets were RMB146.86 million. • Jingxing operates a 75.22 MW gas-fired plant in Changxing County, Zhejiang. Post-transaction, it will no longer be a subsidiary of Puxing Energy.
Aggregate Deal Metrics and Financial Impact • Total consideration: RMB260.20 million (approximately HK$294.03 million). • Estimated net proceeds after expenses: about RMB255 million, earmarked for future business development and potential investments in technology, digital economy and energy-tech sectors. • Expected accounting impact: a combined disposal loss of roughly RMB1.43 million and a reduction in total assets of about RMB251.65 million (Deneng: RMB102.90 million; Jingxing: RMB148.75 million).
Strategic Rationale • Both Deneng and Jingxing require significant capital for energy-storage projects, which Puxing Energy deems misaligned with its long-term strategy amid tightening capacity-tariff reforms in Zhejiang. • Divestment is intended to streamline operations, improve capital efficiency and provide liquidity for strategic transformation toward a technology- and digital-driven industrial model.
Regulatory and Approval Status • The transactions are classified as major and connected, with the highest applicable percentage ratio exceeding 25 % but below 75 %. • Independent Board Committee and Donvex Capital have been appointed to advise minority shareholders. • Puxing International and its associates (collectively holding 65.42 % of Puxing Energy) must abstain from voting. • A shareholder circular is scheduled for dispatch by 30 April 2026; completion is conditional on shareholder and regulatory approvals and must occur by 31 March 2027.
Post-Transaction Operations Following completion, Puxing Energy will retain two wholly owned gas-fired plants—Bluesky Power Plant (112.34 MW plus 100 MW/200 MWh storage) and Puxing (Anji) Gas Turbine Cogeneration (158.36 MW)—with a combined 270.70 MW generating capacity and 160 t/hour heating capacity.