Zhongfu Industry unit to transfer debt to parent

Henan Zhongfu Industry (SSE: 600595) announced that its wholly-owned subsidiary, Zhongfu Electric Power, intends to transfer its accounts receivable from Henan Yellow River Heluo Water to its parent company, Henan Yulian Energy Group. The transfer price is based on the assessed market value of RMB 135,115,670.71. The move is designed to improve asset efficiency and reduce financial risk. This transaction constitutes a related-party transaction, approved by the board, with related directors abstaining from the vote. The debt's book value stood at RMB 168,894,588.39 as of December 31, 2024. The company says that this transaction is not expected to significantly impact its financial situation.