Yuneng Holdings: Projected Capital Boost for Xiantian Computing Capped at 1.4 Billion Yuan; No Consolidation of Financial Statements
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Author:小编   

Yuneng Holdings has released a supplementary announcement along with a risk warning, indicating its intention to engage in equity investment in Xiantian Computing, a subsidiary of Henan Investment Group. The plan is to leverage Xiantian Computing as the primary entity for acquiring Zhengzhou Heying Data Co., Ltd. Although Xiantian Computing has entered into a Share Transfer Agreement with the counterparty, contingent upon certain conditions taking effect, it must still undergo procedures including, if necessary, obtaining approval from the state-owned assets supervision and administration department and undergoing an operator concentration review. The fulfillment and timing of these relevant conditions remain uncertain. Yuneng Holdings anticipates that its equity participation and capital increase in Xiantian Computing will not surpass 1.4 billion yuan, with the capital increase ratio not expected to exceed 49%. Notably, the financial statements of Xiantian Computing will not be consolidated. Presently, the audit and evaluation processes for Xiantian Computing are still ongoing, and the exact amount of the capital increase, the ratio, and related agreements are yet to be finalized. Furthermore, the target company is exposed to operational risks inherent in the data center industry, risks stemming from the concentration of large clients, and risks associated with effective integration post-merger and acquisition.