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China Carbon Neutral Development Group Limited ( (HK:1372) ) has shared an announcement.
China Carbon Neutral Development Group has provided further details on its acquisition of a 60% stake in Zailiang New Energy, a licensed waste battery recycler in China. The company negotiated the consideration down to HK$30 million, about 56.75% of the original valuation, citing lower-than-expected growth, unforeseen project risks, and a relatively aggressive prior valuation of the lithium battery recycling business.
Management said the valuation aligned with Zailiang’s actual 2023 operating performance and broader market trends, with Zailiang’s assets valued at RMB 80.83 million as of end-2022 and its financials consolidated into the group from January 2023 to June 2024. The deal is strategically aimed at securing a scarce waste battery recycling and reuse license, which the company believes will provide a competitive edge in China’s lithium battery recycling industry and support its long-term sustainable development strategy.
More about China Carbon Neutral Development Group Limited
China Carbon Neutral Development Group Limited operates in the new energy and sustainability sector, focusing on businesses aligned with carbon-neutral development. The group is expanding into lithium battery recycling through acquisitions, targeting licensed waste battery recyclers in China to strengthen its position in the emerging circular economy for new energy materials.
Average Trading Volume: 1,805,500
Technical Sentiment Signal: Sell
Current Market Cap: HK$702M
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