Xinjiang Tianfu Energy (600509.SH) plans to spend 77.7688 million yuan to acquire modern service heating and water supply assets to address competition issues in the industry.

Xinjiang Tianfu Energy (600509.SH) announced that the company and its wholly-owned subsidiary, Shihezi Zezhong Water Affairs Co., Ltd. (referred to as "Zezhong Water Affairs"), have acquired the relevant assets of the 145th and 146th regiment heating and water supply projects belonging to the related party Xinjiang Tianfu Modern Service Co., Ltd. (referred to as "Modern Service") in cash. These assets include the heating and water supply project pipelines, related equipment, and structures within their respective areas. After appraisal by Zhixinde (Beijing) Asset Appraisal Co., Ltd. with the valuation date as of October 31, 2024, using the cost method, the total book value of the assets is 71.8252 million yuan, and the assessed value with tax is 77.7688 million yuan. Through mutual agreement, the assets were purchased at the assessed value with tax, totaling 77.7688 million yuan. The heating-related assets were taken over by the company at a transfer price of 64.7166 million yuan, while the water-related assets were taken over by Zezhong Water Affairs at a transfer price of 13.0522 million yuan. The company's main business includes electricity and heat production and supply, natural gas supply, urban water supply, and construction services. The acquisition of the heating and water supply project assets belonging to the related party in the 145th and 146th regiments will cover approximately 2.7 million square meters of heating area and have an annual water supply volume of approximately 5.6 million cubic meters. This acquisition will help the company expand its core business, optimize resource allocation, increase cash flow, solve industry competition issues, reduce related transactions, and align with the company's long-term development strategy.