BJ ENERGY INTL (00686) entered into an agreement to pay a earnest deposit, in order to facilitate further negotiations between Beijing Jingneng and Huitian Network regarding the proposed acquisition.

BJ ENERGY INTL (00686) announced that on September 20, 2024, Beijing Jingneng (a wholly-owned subsidiary of the company) entered into an intention fee payment agreement with Huitian Network, Yang Meiling, and Sun Jian. Beijing Jingneng agreed to pay a refundable intention fee of 500 million RMB to facilitate further negotiations with Huitian Network on the proposed acquisition, and to obtain the exclusive rights to the target assets for the development and operation of intelligent computing and data centers at the Huitian Network Technology IDC Industrial Park. As a guarantee for the refundable intention fee, Huitian Network, Yang Meiling, and Sun Jian committed to entering into a supporting guarantee agreement with Beijing Jingneng as the beneficiary. The announcement stated that the proposed acquisition refers to Beijing Jingneng's proposal to acquire equity in the target company to obtain the exclusive rights to develop and operate the intelligent computing and data center located at the Huitian Network Technology IDC Industrial Park. It is reported that Huitian Network is a limited liability company established in China and a comprehensive network service provider specializing in internet data center leasing services. Its core assets are located at the Huitian Network Technology IDC Industrial Park, which includes 17 buildings with approximately 40,000 server racks. As of the date of this announcement, the directors understand that Huitian Network is owned by Yang Meiling and Sun Jian with approximately 99.4% and 0.6% ownership respectively. Considering the development of the intelligent computing and data center industry in China and the expected investment returns, the company has a positive outlook on the future prospects of the industry. The board believes that the proposed acquisition, once completed, will complement the group's existing business portfolio, allowing the group to expand into the development and operation of intelligent computing and data centers, thereby generating greater returns for shareholders. Therefore, the board considers the proposed acquisition to be an opportunity to expand the group's existing business portfolio. The intention fee is provided to Huitian Network to facilitate negotiations on the proposed acquisition. Under the intention fee payment agreement, Beijing Jingneng will have the exclusive rights to the target assets during the exclusive period. The intention fee is refundable and its refund is guaranteed by the supporting guarantee agreement. The directors believe that paying the intention fee will ensure that Beijing Jingneng obtains the negotiation and acquisition rights mentioned above.