Huaming Power Equipment to sell Changzheng Electric stake

Huaming Power Equipment (SZSE:002270) announced its intention to sell its entire stake in Guizhou Changzheng Electric Co., Ltd. The sale will be conducted through a public inquiry followed by a negotiated agreement via the Shanghai Equity Exchange. The move is driven by existing complex litigation issues associated with Changzheng Electric, which could negatively impact the company's financial results, and aims to mitigate potential legal risks and optimize asset structure. The proposed transfer price will not exceed the appraisal value of CNY 1,985.64 million. The acquirer and final transaction price remain undetermined. The Board of Directors has already approved the sale, and upon completion, Changzheng Electric will no longer be consolidated into Huaming Power Equipment's financial statements.