BJ ENERGY INTL (00686) intends to establish a limited partnership enterprise as a subsidiary.

BJ ENERGY INTL (00686) announces that on September 20, 2024, Beijing Guodian (a non-wholly owned subsidiary of the company), Jenergy Development (a non-wholly owned subsidiary of the company), and Hua Dian Jin Tai entered into a limited partnership agreement to establish a limited partnership enterprise in China. The total capital injection for the limited partnership enterprise is 2.125 billion RMB. The maximum capital injection amounts provided by Beijing Guodian, Jenergy Development, and Hua Dian Jin Tai will be 500,000 RMB, 425 million RMB, and 1.6995 billion RMB, respectively. The limited partnership enterprise will be established for equity investments, project investments (related to new energy or related projects mainly with Jenergy Development's core business), and debt investments that meet the specified standards in the limited partnership agreement. After the capital injection is completed, the limited partnership enterprise will be classified as a subsidiary of the group, and its financial performance will be consolidated into the group's financial statements. The directors believe that through strategic cooperation and resource sharing with Hua Dian Jin Tai in the form of a limited partnership enterprise, the group will be able to leverage Hua Dian Jin Tai's fundraising capabilities and invest in high-quality investment targets that meet the standards specified in the limited partnership agreement, thereby establishing entities and personnel networks with different capital resources, expertise, and technical knowledge, which will help improve economic efficiency, expand business scale, and maximize the group's profitability. By leading the daily operations and investment management of the limited partnership enterprise and with the funds injected by Class A limited partners (through REITs financing), the group's financial resources and investment capabilities have been strengthened, providing investment opportunities in the new energy field that may not be accessible through other means and promoting the group's business development. As part of the investment scope of the limited partnership enterprise, debt investments provide the group with additional channels to invest in high-quality enterprises with high credit ratings within a reasonable risk range. With the funds from the limited partnership enterprise (most of which should be injected by Class A limited partners), debt investments are expected to bring substantial returns to the group with relatively low capital injections. Furthermore, as the general partner and managing partner of the limited partnership enterprise, the group will be responsible for selecting investment targets and approving investment models. Through subsequent investments in the limited partnership enterprise, the group will demonstrate its ability to manage significant funds from third parties (funds raised through REITs financing will be injected into the limited partnership enterprise and included in the group's financial statements) and build a positive image. The directors believe that this will help with the group's subsequent investment projects, boost market confidence in the group, and potentially improve the company's credit rating.