China Gas (00384) announced that on February 27, 2024, China Fuel Energy (a wholly-owned subsidiary of the company) (as the lessee) signed termination agreements with Fuzhong Legend and Fuzhong Rongyao (owners of two ships called “CHINAGAS LEGEND*)” and “CHINAGAS GLORY (CHINAGAS GLORY)”, respectively. The contracting parties agreed to terminate the ship leasing contract early, effective from the effective date of termination. All rights and obligations under the ship leasing contract cease on the effective date of each termination.
The total right-to-use assets confirmed by the Group under the termination agreement were reduced by approximately HK$967 million. Compared with the confirmed outstanding balance of approximately HK$1,043 million in leasing liabilities under the ship leasing contract, the Group is expected to obtain a revenue of approximately HK$76 million from the early termination of the ship leasing contract. Early termination of the ship leasing contract will not generate any sales proceeds.