Glonghui December 19丨Beijing Gas Blue Sky (06828.HK) announced that on December 19, 2023, the buyer (an indirect wholly-owned subsidiary of the company) and seller Tractebel Engineering S.A. signed an agreement to trade shares for sale (accounting for 49% of the total shares of the target company, Beijing Unite Energy Engineering Technology Co., Ltd.) at a total cost of RMB 41.65 million.

The target company is an enterprise in the technology field mainly engaged in planning, design and consulting for gas, heating, integrated energy utilization and new energy power generation projects. The target company has complete business qualifications and has more than 20 industry and professional qualifications, including gas, new energy power generation, engineering supervision, and general contracting of municipal public works. The target company's registered and paid capital is RMB 30 million.

Based on the information currently held by the Group, in recent years, the target company has undertaken more than 40 scientific research projects from enterprises and governments, and has carried out research in the fields of energy-saving technology, green energy and comprehensive energy utilization technology, smart energy technology, urban gas planning technology, natural gas storage and peak management technology, natural gas storage and peak management technology, natural gas transmission and distribution technology, and natural gas application technology. Target companies have also participated in more than 30 national, industry, local, group and enterprise standardization projects.

Based on the information currently held by the Group, as of the date of this announcement, the target company had more than 20 patents. The target company's business model integrates general engineering contracting, engineering supervision, scientific research and energy saving technology services. The geographical scope of its business covers major economic development regions in China, and has carried out more than 50 different types of energy projects in more than 30 provinces and cities.

The board of directors believes that the acquisition is in line with the country's double carbon policy and the rapid development trend of renewable energy, low carbon energy and new energy supply systems under the national energy development strategy, and enables the group to balance and diversify its investments outside of traditional natural gas projects. The board of directors also believes that the acquisition will not only support the Group's business transformation in terms of energy solution design and technology, but also enable the Group to develop new businesses such as integrated energy coupling, low-carbon technology, energy digitization and intelligence, and traditional energy optimization, thereby enhancing the Group's core competitiveness in the energy industry, creating new growth points for the Group's business, and helping to enhance investors' confidence in the company and enhance its long-term overall value.

Furthermore, the board of directors believes that the acquisition will promote the strategic layout of the Group's integrated energy and new energy business development, form synergies, and enhance the Group's competitiveness and overall profitability. According to the information currently available, the target company's current business covers technical services such as scientific research and development, consulting, planning, design, general engineering contracting, engineering supervision, and energy saving technology, etc., and has carried out extensive scientific and technological innovation work. The board of directors believes it will make a significant contribution to the operation and technical level of the Group's new energy business. Furthermore, the board of directors considered that the target company has deployed new energy in the southeast coastal region of China, mainly targeting projects such as photovoltaics, decentralized wind power, and energy storage, which is in line with the Group's new energy business development strategy.

After the acquisition is completed, the market data of the group and the target company will be shared, which will help the group expand related new energy projects. After the acquisition is completed, the Group will benefit from the potential profit and cash flow contributions of the target company and the prospects of the new energy industry, thereby enhancing the Group's asset base and profitability. Furthermore, the target company's continued annual dividend expectations will also bring stable returns to the Group. The target company is an enterprise in the technology field mainly engaged in the planning, design and consulting of gas, heating, integrated energy utilization and new energy power generation projects. Therefore, the acquisition is in line with the Group's enterprise development strategy of focusing on developing integrated energy and new energy business and building a clean, low-carbon, safe and efficient energy system.