Huscoke Holdings announced that on 12 January 2023, Shanxi Huscoke International Energy Co., Ltd* (山西和嘉國際能源有限公司), a wholly-owned subsidiary of the Company ) (“New Subsidiary”) and Shanxi Jinyan Energy Technology Company Limited* ( 山西金岩能源科技有限公司 ) (“Energy Technology”), has entered into a shareholder agreement (the “Shareholder Agreement”) to set out the obligations of the shareholders of the Shanxi Jinyan Energy Jiarun Co., Ltd*（山西金岩能源嘉潤有限責任公司）(“Target Subsidiary”), including but not limited to, that all the directors of the Target Subsidiary shall be solely appointed by the New Subsidiary; Energy Technology is obligated to grant the Target Subsidiary all the necessary license and permit for the operation of the Target Subsidiary, including but not limited to the operating license, the administrative permit and the right of use of the land, etc. ; and Energy Technology is obligated to grant the Target Subsidiary the right of use of the public auxiliary facilities within the useful life of the equipment. On 7 March 2023, Energy Technology has issued a confirmation letter to confirm that it will comply with terms of the Shareholder Agreement and has forfeited the rights to nominate any board member or senior management of the Target Subsidiary.
On 18 January 2023, Energy Technology completed the equity transfer of 90% equity interest in the Target Subsidiary to the New Subsidiary of the Company.
The Board has confirmed the completion of the Cooperation Agreement and the Agreement by appointed an independent certified public accountant in PRC to verify the accounts of the Target Subsidiary; and appointed an independent lawyer in PRC to issue an independent legal opinion.
The Board pleased to announced that all conditions under the Agreement have been fulfilled, therefore the Transaction Completion took place on 18 January 2023. Upon the Transaction Completion, the Target Subsidiary has become an indirect non-wholly owned subsidiary of the Company and the results of the Target Subsidiary have been consolidated into the financial statements of the Group.