en.Wedoany.com Reported - On April 9, Hunan Energy Group Development Co., Ltd. (referred to as "Hunan Development") announced that its wholly-owned subsidiary, Hunan Development Yiyuan Natural Resources Development Co., Ltd., plans to publicly list and transfer a 40% equity stake in Hunan Development Qionghu Building Materials Operation Co., Ltd. and a 10% equity stake in Hunan Development Qionghu Sand and Gravel Distribution Center Co., Ltd. through the Hunan United Property Rights Exchange. The listed base prices are 14.6506 million yuan and 3.7002 million yuan, respectively.

Hunan Development was established in August 1993 with a registered capital of 464 million yuan. It was listed on the Shenzhen Stock Exchange in May 1997, with stock code 000722. Its controlling shareholder is Hunan Energy Group Co., Ltd. The company's main businesses include clean energy projects such as hydroelectric power generation and photovoltaic power generation, as well as natural resources businesses like sand and gravel sales and manufactured sand production and processing. By the end of 2025, the company operated and managed three hydropower stations within Hunan province—Zhuzhou Navigation Power, Mangtangxi, and Niao'erchao—and several distributed photovoltaic power stations, with a total controllable installed capacity of 245.02 MW. The natural resources business, operated through the platform of Hunan Development Yiyuan, involves the sales of products like river sand and pebbles in the middle and lower reaches of the Yangtze River.

The two target companies subject to this listing transfer are both located in Yuanjiang City, Yiyang City, Hunan Province. Yuanjiang City is situated in northern Hunan Province, bordering Dongting Lake. Hunan Development Qionghu Building Materials Operation Co., Ltd. was established on September 27, 2021, with a registered capital of 80 million yuan. Its initial purpose was to extend the sand and gravel industry chain and improve the layout of the sand and gravel resources business. The company invested in building a manufactured sand processing plant, adopting a "cone crusher + vertical shaft impact crusher + double-roll crusher + rod mill" sand-making process, equipped with an automated control system. Hunan Development Qionghu Sand and Gravel Distribution Center Co., Ltd. was also established on September 27, 2021, with a registered capital of 50 million yuan. It mainly engages in building materials warehousing, transportation, loading/unloading, and sales. Its sand and gravel distribution center project covers an area of approximately 36 mu, has a storage capacity of over 200,000 tons, and includes two water transport berths.

According to the announcement, Qionghu Building Materials has been continuously incurring losses since its establishment, with combined losses exceeding 40 million yuan in 2024 and 2025. Qionghu Sand and Gravel Distribution Center has also been in a loss-making state since its inception. Using September 30, 2025, as the valuation reference date, the assessed value of Qionghu Building Materials' owners' equity was 36.6265 million yuan, an increase of 6.7984 million yuan compared to its book value of 29.8281 million yuan, representing an appreciation rate of 22.79%. The assessed value of all shareholders' equity of Qionghu Sand and Gravel Distribution Center was 37.002 million yuan, an increase of 21.55% compared to its book value.

After the completion of this transaction, Hunan Development Yiyuan's shareholding ratio in Qionghu Building Materials will decrease from 67% to 27%, and Qionghu Building Materials will no longer be included in the listed company's consolidated financial statements. Its shareholding ratio in Qionghu Sand and Gravel Distribution Center will decrease from 40% to 30%. According to Hunan Development's 2025 annual report, the company's natural resources business (primarily sand and gravel sales) generated revenue of approximately 92.16 million yuan, accounting for 26.40% of total revenue. The clean energy business generated revenue of 243 million yuan, accounting for 69.52%. The company stated that this sale is a prudent decision based on business development and strategic planning, which is conducive to optimizing the industrial structure and focusing on the core energy business. It should be noted that as both target companies have outstanding financial loans that have not been repaid, this transaction requires written consent from the relevant lending banks. If such consent is not obtained during the listing announcement period, the listing will automatically terminate.

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