CGII HLDGS (01940) announced that on April 15, 2026, the company, acting as the transferor, entered into three deeds of assignment with the transferee, Tangde Gas Co., Limited, which is its largest shareholder. Pursuant to these deeds, the entire interest and associated benefits of the loans and their accrued interest were transferred to the transferee for a total consideration of RMB 118 million. The company had originally entered into three loan agreements on November 30, 2020, December 1, 2020, and December 1, 2020, respectively, lending a total principal of RMB 118 million to three borrowers. The loans have been overdue since their maturity date of December 30, 2020, and were fully provided for in the company's consolidated financial statements for the year ended December 31, 2020, resulting in a loss for the group and a corresponding decrease in net asset value. The transferee entered into a share purchase agreement on January 28, 2026, to acquire approximately 39.01% of the company's equity, which was completed on February 10, 2026. Following the completion of the share purchase agreement, the transferee became the controlling shareholder of the company. The debts under the loan agreements have long been overdue, and despite the company having taken legal action against the borrowers, it has been unable to recover the principal or any accrued interest. The transferee's purchase of the loans and their accrued interest will involve a cash payment of RMB 118 million to the company. This transaction will immediately increase the group's net asset value balance and improve its cash position.
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