CHYY Development Group Limited (SEHK:8128) signed a letter of intent to acquire 80% stake in China Hydrogen Energy (Shenzhen) New Technology Co. Ltd. from Wang Chenglin for HKD 70.2 million on September 29, 2023. The specific terms and conditions of the formal agreement are subject to the approval of CHYY Board after the completion of CHYY?s due diligence.

As on October 27, 2023, CHYY Development Group Limited (SEHK:8128) entered into an agreement to acquire 80% stake in China Hydrogen Energy (Shenzhen) New Technology Co. Ltd. Under the terms, CHYY shall issue 129.6 million shares within 10 days after completion and a maximum of 747.9 million shares subject to adjustment on the actual amount of EBITDA of China Hydrogen Energy for the year ending December 31, 2023. China Hydrogen Energy reported net asset value of HKD 13.6 million as at August 31, 2023.

As at February 29, 2024, the unaudited net asset value of China Hydrogen Energy was approximately HKD 14.2 million. Completion is subject to listing of new shares, approvals from the relevant PRC government authorities and relevant third parties approval. As of March 18, 2024, CHYY Development, Wang Chenglin and the guarantor entered into a side letter supplemental to the agreement.

The GEM Listing Committee has approved the listing of, and the permission to deal in the 1st Tranche Consideration Shares and such approval has not been revoked. The long stop date is March 31, 2024. As of March 28, 2024, the long stop date has been extended to June 30, 2024.

Diligent Capital Limited acted as financial advisor for CHYY.