Boqi Environmental Protection (02377) announced that on October 27th, Beijing Boqi, an indirect wholly-owned subsidiary of the company, entered into an asset transfer agreement with Guangdong Huaxia Power and Yangxi Power Co., Ltd. No. 1-2 Yangxi facility desulphurization and denitrification project. Accordingly, Beijing Boqi agreed to purchase 1-2 Yangxi facilities (excluding land) from Yangxi Electric Power at a consideration of about 154 million yuan (excluding tax, that is, 174 million yuan).
According to the asset transfer agreement of the No. 1-2 Yangxi facility desulphurization and denitrification project, after the completion of the acquisition, the operation and maintenance services provided by Beijing Boqi under the Yangxi agreement on No. 1-2 Yangxi facility will be terminated, and Beijing Boqi will implement the operation service of No. 1-2 Yangxi facility until December 31, 2039. According to the operation service of Yangxi facility No. 1-2, Beijing Boqi will charge a service fee for the following: a subsidy for desulphurization and denitrification calculated on the basis of online electricity multiplied by the applicable fixed rate; and the "ultra-low emission" operation service fee calculated based on the actual operation and maintenance costs. At the same time, Beijing Boqi should pay additional fees for the operation and services of Yangxi facilities at No. 1-2 to Yangxi Electric Power.