[Caihua News] Baiqin Oil Service (02178.HK) announced that Shenzhen Baiqin Petroleum Technology Co., Ltd., a wholly owned subsidiary of Shenzhen Baiqin Petroleum Technology Co., Ltd., and Yuanwei New Energy Development Co., Ltd., Ganzi Prefecture, entered into a cooperation framework agreement on January 18, 2022.
According to the framework agreement, the parties to the framework agreement will cooperate to set up a project company to build and utilize geothermal energy from four high-temperature geothermal mines in Ganzi Tibetan Autonomous Prefecture, Sichuan Province, China. Yuanwei New Energy will be responsible for the operation of the project company.
In view of the global environmental trend and China's national policy of increasing the use of renewable energy to reduce carbon emissions, the Board is of the view that the framework agreement provides an opportunity for the Group to enter into the business of renewable geothermal energy utilization and power generation, it is possible to expand its source of income for the Group in the future and is in the interests of the company and its shareholders as a whole.