Hongcheng Environmental Details Asset-Based Valuation Behind RMB71 Million Acquisition

Hongcheng Environmental Technology Co., Ltd. ( (HK:2265) ) has issued an announcement.

Hongcheng Environmental Technology Company Limited issued a supplemental announcement detailing the valuation basis for its previously disclosed acquisition of a target company. The transaction consideration of RMB71.17 million was derived with reference to the target’s audited net asset value as of 31 December 2025, an independent appraisal, and the strategic fit of the acquired business.

The independent valuer selected an asset-based approach after reviewing income and market methods, citing the target’s lack of operating cash flow and the absence of suitable comparable companies or transparent private equity transaction data. The appraisal equated the equity value to the appraised total assets minus total liabilities, with key asset items such as cash, receivables and inventory largely taken at book value, and fixed assets slightly adjusted, providing investors greater transparency into the pricing rationale and risk profile of the acquisition.

More about Hongcheng Environmental Technology Co., Ltd.

Hongcheng Environmental Technology Company Limited is an environmental technology company listed in Hong Kong that focuses on environmental solutions and related industrial operations. The group appears to be expanding its asset base through acquisitions aimed at enhancing long-term strategic complementarity within its sector-focused portfolio.

Average Trading Volume: 364,112

Technical Sentiment Signal: Buy

Current Market Cap: HK$1.04B

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