Guangdong Liantai Environmental Protection Co Ltd

Liantai Environmental Protection disclosed a major asset sale plan on the evening of September 29, proposing to transfer 100% equity in Hunan Liantai and 100% equity in Shantou Liantai to Shangshi Zhejie, with the counterparty paying in cash. Under the equity transfer agreement signed by both parties that day, the transfer price for Shantou Liantai is 590 million yuan, and for Hunan Liantai is 1.021 billion yuan, totaling 1.611 billion yuan. The transaction constitutes a major asset restructuring but does not constitute a related-party transaction or a backdoor listing. Hunan Liantai and Shantou Liantai were established in April 2026 to consolidate three project companies in the Hunan region and eight project companies plus one wholly owned electromechanical equipment subsidiary in the Shantou region of Guangdong that the listed company plans to sell. After the transaction is completed, the listed company will no longer hold equity in these two companies, but will still hold 15% to 40% stakes in eight companies including Sunan Water and Subei Water, which are controlled subsidiaries of Shantou Liantai. The controlling shareholder of the counterparty Shangshi Zhejie is Shanghai Shangshi Group, and its actual controller is the Shanghai State-owned Assets Supervision and Administration Commission. This acquisition aligns with the expansion strategy of Shanghai Shangshi's water utilities segment. Liantai Environmental Protection said the transaction will help resolve liquidity risks and debt repayment risks, significantly reduce the scale of accounts receivable, and lower the erosion of future earnings by credit impairment losses. As of the end of the second quarter of 2026, the company's book cash was only 31.93 million yuan, while short-term borrowings and non-current liabilities due within one year totaled about 712 million yuan, roughly 22.3 times book cash, with an additional 4.346 billion yuan in long-term borrowings. From the end of 2023 to the end of June 2026, the company's accounts receivable balances were 1.261 billion yuan, 1.654 billion yuan, 2.118 billion yuan, and 2.417 billion yuan respectively, while credit impairment losses rose from 77.2884 million yuan in 2023 to 161.2776 million yuan in 2025, an increase of 108.67%.