Zheneng Jinjiang Environment Announces Voluntary Winding Up of Dormant Subsidiary
Zheneng Jinjiang Environment Announces Voluntary Winding Up of Dormant Subsidiary
Zheneng Jinjiang Environment Holding Company Limited has released an announcement pursuant to Rule 706A of the Singapore Exchange Securities Trading Limited (SGX-ST) Listing Manual, detailing a corporate action that could be of interest to shareholders and investors.
Key Points from the Announcement
- Voluntary Liquidation of Prime Gain Investments Limited: The company has dissolved its dormant, wholly-owned subsidiary, Prime Gain Investments Limited (鸿盈投资有限公司), incorporated in Hong Kong, through a members’ voluntary liquidation completed on 15 August 2025.
- Background and Rationale: Prime Gain was originally established in November 2013 as an investment holding company. It previously held the entire equity interest in Hangzhou Kesheng Energy Technology Co., Ltd. (杭州科晟能源技术有限公司), which manages the Group’s energy management contracting business.
- Internal Restructuring: In a restructuring exercise disclosed in February 2023, Prime Gain transferred its stake in Hangzhou Kesheng to another wholly-owned PRC subsidiary, Hangzhou Jinjiang Environment Investment Co., Ltd. (杭州锦环投资有限公司). As a result, Prime Gain became a dormant entity with no subsidiaries prior to its winding up.
- Strategic Intent: The voluntary winding up of Prime Gain was undertaken as part of the Group’s ongoing efforts to rationalise its corporate structure and reduce compliance costs associated with maintaining dormant subsidiaries.
- Financial Impact: The company has explicitly stated that the liquidation of Prime Gain is not expected to have any material impact on the Group’s earnings per share or net tangible assets for the financial year ending 31 December 2026.
- Director and Shareholder Interests: No director, controlling shareholder, or their associates (other than through their shareholding interests in the Company) holds an interest in the corporate action.
Implications for Shareholders
- Corporate Simplification: The winding up of Prime Gain is part of a broader strategy to streamline the Group’s structure, which may enhance operational efficiency and reduce overhead costs in the long run.
- Materiality: The company’s clear statement that this action will not affect earnings or net tangible assets means that, from a financial perspective, this announcement is not expected to be price-sensitive or have a direct impact on share values.
- Regulatory Compliance: By dissolving dormant entities, the Group is demonstrating prudent corporate governance and a proactive approach to regulatory compliance.
Investor Takeaways
While the voluntary liquidation of Prime Gain Investments Limited does not have a direct financial impact on the Group, it signals management’s commitment to maintaining an efficient and compliant corporate structure. This move is not expected to affect the company’s share price, as there are no material changes to earnings or asset values.
Contact Information
For further information, investors may contact:
Wang Ruihong
Executive Deputy Chairman and Deputy General Manager
Tel: (86) 153 5618 3219
Email: [email protected]
Disclaimer: This article is based on public company announcements and is intended for informational purposes only. It does not constitute investment advice. Investors should perform their own due diligence before making any investment decisions.
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