Dongyue Group Ltd (HKG:0189) a High-tech enterprise in fluorine and silicone industry has signaled through a press release that it intends to separate its hydrogen materials subsidiary into an independent unit and list it on the Shanghai Stock Exchange.
The Board has resolved to approve (i) the spin-off of Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd. (山東東岳未來氫能材料有限公司) (“Dongyue Future”), an indirect non-wholly owned subsidiary of the Company which is primarily engaged in the business of production and sale of hydrogen energy materials, hydrogen membrane materials, packaging materials, and fluoropolymer fiber, by way of separate offering and listing of Dongyue Future’s shares on Sci-Tech innovation board (STAR Market) (科創板) of the Shanghai Stock Exchange (the “Proposed Spin-off”) on detailed terms to be determined at a later stage; (ii) the engagement of relevant professional parties to provide assistance and advice to the Company and/or Dongyue Future in relation to the Proposed Spin-off; and (iii) possible investment by the potential investor(s) in Dongyue Future before the Proposed Spin-off (the “Possible Pre-IPO Investment”) on terms and conditions to be agreed.
The Proposed Spin-off is at a preliminary stage. If the Proposed Spin-off is proceeded with, the Company will also submit a spin-off proposal in respect of the Proposed Spin-off to The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) for approval pursuant to Practice Note 15 of The Rules Governing the Listing of Securities of the Stock Exchange (the “Listing Rules”) in due course.
The Proposed Spin-off, if materializes, is expected to accelerate the development of Dongyue Future’s business, broaden its financing channels and enhance its growth potential, competitiveness, and industry status. If the Possible Pre-IPO Investment and/or the Proposed Spin-off are proceeded with, the Directors expect that the Company’s equity interest in Dongyue Future may/ or will be reduced upon completion of the Possible Pre-IPO Investment and/or the Proposed Spin-off, which may constitute notifiable transaction(s) of the Company under Chapter 14 of the Listing Rules.
The Company will make further announcement(s) in relation to 2the Possible Pre-IPO Investment and/or the Proposed Spin-off in accordance with the requirements of the Listing Rules as and when appropriate.