Shenling Environment plans to acquire 100% equity in its wholly-owned sub-subsidiary Tianjin Shenling HVAC Equipment Co., Ltd. for 7.1805 million yuan. After the transaction, Tianjin HVAC will change from a wholly-owned sub-subsidiary to a wholly-owned subsidiary. The acquisition price is based on the assessed net asset value of Tianjin HVAC as of December 31, 2025, and the funds come from the company's own capital. In the first quarter of this year, Tianjin HVAC recorded revenue of 44.2901 million yuan and a net loss of 2.4865 million yuan. Shenling Environment stated that this internal equity transfer does not change the scope of consolidated financial statements and has no significant impact on the company's operations or financial position. The company's own first-quarter performance was also under pressure, with revenue of 617.2 million yuan, down 1.80% year-on-year, net profit of 28.31 million yuan, down 47.71% year-on-year, and a net operating cash outflow of 193 million yuan.
Guangdong Shenling Environmental Systems Co. Ltd.Acquiring a loss-making subsidiary for 7.18M yuan while parent's own Q1 net profit fell 47.71% and operating cash flow was negative 193M yuan