5100 Xizang Glacier Company Limited has released an update on its planned acquisition of Nyenchen Tanglha Investment Co., Ltd., the special-purpose vehicle holding the remaining 72% stake in Xizang Life Water Development Co., Ltd. (“PRC Company”).
The independent valuer, Vincorn Consulting and Appraisal, set the fair value of 100% equity in the PRC Company at RMB 336.00 million, exceeding the minimum RMB 330.00 million threshold stipulated in the June 2026 sale-and-purchase agreement. The valuation employs a discounted cash-flow approach under the income method, with a 12.87% weighted-average cost of capital, a 2.0% terminal growth rate and a 15.70% discount for lack of marketability.
Key valuation metrics: • Enterprise value: RMB 408.39 million • Equity value (pre-discount): RMB 399.14 million • Equity value (post-discount): RMB 336.47 million (rounded to RMB 336.00 million)
Total consideration remains unchanged at RMB 237.60 million, equivalent to 72% of the RMB 330.00 million reference valuation agreed earlier. Management believes this level is fair given the updated appraisal.
The discounted cash-flow model incorporates a five-year forecast (2027-2031) that projects revenue rising from RMB 147.41 million to RMB 221.22 million, implying a 10.68% CAGR, driven by three existing sales contracts and new customer acquisition. Profit after tax is expected to reach RMB 58.96 million in 2030 before normalising to RMB 53.06 million in 2031, when the full 25% corporate tax rate resumes.
Because the valuation relies on future cash-flow projections, it constitutes a profit forecast under Hong Kong Listing Rule 14.61. HLB Hodgson Impey Cheng has issued a comfort letter confirming the arithmetic accuracy of the forecast, while Astrum Capital Management, acting as independent financial adviser, states the directors have made the projections after due and careful enquiry.
Completion of the transaction remains subject to outstanding conditions precedent; the company will provide further updates in due course. Shareholders and potential investors are advised to exercise caution when dealing in 5100 Xizang’s securities.