Fengzhu Textile Plans To Transfer CITIC Environmental Protection Equity And Some Land To Relieve Capital Pressure

On November 23, 2020, Fengzhu textile (600493. SH) announced that the company's wholly-owned subsidiary Henan Fengzhu Textile Co., Ltd. (hereinafter referred to as "Henan Fengzhu") intends to transfer 10% of the equity of CITIC environment (Anyang) printing and dyeing environmental protection Comprehensive Development Co., Ltd. (hereinafter referred to as "CITIC environmental protection") to CITIC environmental technology investment at the transfer price of its corresponding paid in capital of RMB 722221 Capital (China) Co., Ltd. (hereinafter referred to as "CITIC environment").

At the same time, Henan Fengzhu plans to divide the 424.08 Mu parcel of land into 58.34 mu for self construction of "Henan Fengzhu (Anyang) 30000 tons printing and dyeing project", and the remaining 365.74 mu of land (calculated according to RMB 404.04454854 yuan / m2) will be transferred to CITIC environmental protection. The total transfer price of relevant land is about 115 million yuan, which is subject to the actual final accounting amount.

It is reported that Henan Fengzhu will transfer 10% of the equity of the joint venture company CITIC environmental protection to CITIC environment. After the transfer, Henan Fengzhu will no longer hold the equity of the joint venture and completely withdraw from the operation of the joint venture, which will help the company concentrate on the investment and construction of 58.34 mu of "Henan Fengzhu (Anyang) 30000 tons printing and dyeing project", improve the company's operation efficiency and conform to the company's overall situation Physical interests.

In addition, Henan Fengzhu transferred the remaining 365.74 mu of land to CITIC environmental protection Co., Ltd., which is conducive to invigorating existing assets, optimizing resource allocation, relieving capital pressure and increasing liquidity, which meets the needs of the company's strategic development; meanwhile, the transfer is expected to generate about 2.2 million yuan of income.