EQS-Adhoc: ZhongDe reached an amendment agreement with Capital Yield Group Limited on equivalent exchange between the equity of King Trade Group Ltd and the remaining balance for share purchase price of Chung Hu

ZhongDe reached an amendment agreement with Capital Yield Group Limited on equivalent exchange between the equity of King Trade Group Ltd and the remaining balance for share purchase price of Chung Hua Group

Frankfurt, 02 September 2024 – ZhongDe Waste Technology AG (the “Company”) and Capital Yield Group Limited (the “Capital Yield Group”) have today entered into an amendment agreement on equivalent exchange between the 100 % equity of King Trade Group Company Limited (the “King Company”), a subsidiary company in Hong Kong of Capital Yield Group and the balance of Euro 104 Million for the equity purchase of Chung Hua Environmental Protection Assets (Holdings) Group Ltd (the “Chung Hua Group”), a subsidiary of ZhongDe Waste Technology AG.

This amendment agreement was approved by the Supervisory Board of ZhongDe Waste Technology AG.

King Company holds indirectly three mining rights in the Galshar Coal Mine in East Gobi, Mongolia, the equity in a freight train station platform, as well as related right and interests in the land, property, ownership and management rights, facilities and equipment related to the aforementioned right through its subsidiary company in Mongolia. According to an independent assessment, the market values of the mineral assets aforementioned as of the valuation date of 30 September, 2023 is RMB 2.48 billion which equals approx. EUR 317 million under the premise of implementation of coal quality improvement and humic acid production systems.

Through this agreement, not only has the company's long-standing accounts receivable problem been resolved, but it has also gained access to coal resources in Mongolia. Under the influence of the Russia Ukraine war, the importance of coal resources in global energy consumption has significantly increased, and the coal prices have also risen sharply. King Company provides ZhongDe with opportunities and space for development in the coal industry, opening up new areas for the company's business model.

In addition, to develop chemical products such as humic acid with the coal resources owned by King Company in Mongolia not only provides higher value than selling raw coal, but also allows ZhongDe to continue playing an active role in the field of environmental protection, ensuring a smooth transition for the company in its new strategic transformation and providing strong support for its sustainable development.

With the slowdown of urbanization in China, the waste to energy industry is becoming saturated, which increases the difficulty for the company to win new EPC projects in the Chinese market. However, the company will continue to expand its EPC engineering business. In addition, the company will also develop mineral resources and chemical products mainly based on humic acid in Mongolia, and use its own advantages to try to develop the solar energy and other renewable energy markets in Europe.

In the past few years, due to changes in the company's management and the pandemic, the company was unable to carry out audit work properly for a long time and has therefore been penalized by BaFin and the Federal Bureau of Justice. Therefore, after the end of the epidemic, the company started immediately to clean up the financial issues in the past and prepare for the smooth implementation of audit work.

At present, the company is in contact with German accounting firms. Once a new auditor is determined, the company will immediately begin with financial report auditing from 2017 to 2023 and disclose all financial information, allowing shareholders and investors to fully understand the company's financial situation and restore confidence in the company's business development.


Contact:
ZhongDe Waste Technology AG
Ying Sun
Investor Relations
Barckhausstrasse 1,
60325 Frankfurt
Tel.: +49 (0) 69 2475689 - 630
Fax: +49 (0) 69 2475689 - 499
Email: ying.sun@zhongde-ag.de

 

1979095  02.09.2024 CET/CEST