BINHAI INV (02886) and Yishui Tongzhou signed a cooperation intention letter to integrate the liquefied gas market in Yishui County, Shandong.

On March 10, the board of directors of BINHAI INV (02886) announced that its wholly-owned subsidiary BINHAI INV (Tianjin) Co., Ltd. (referred to as "Bin Invest Tianjin") has signed a cooperation intention letter with Yishui Tongzhou Gas Co., Ltd. (referred to as "Yishui Tongzhou") and its sole owner Mr. Yang Yongqiang, to explore cooperation opportunities in the liquefied gas market in Yishui County, Linyi City, Shandong Province. Yishui Tongzhou is a liquefied gas business enterprise in Daotuo Town, Yishui County, holding the local qualification for liquefied gas operations and has built and operated a standard liquefied gas filling station with good operational performance. According to the intention letter, Bin Invest Tianjin intends to acquire no less than 51% of the equity of Yishui Tongzhou through acquisition and capital increase, or jointly establish a joint venture company with Yang Yongqiang (Bin Invest Tianjin holding no less than 51% of the shares), to acquire all assets or equity of Yishui Tongzhou. Yang Yongqiang will assist in integrating the liquefied gas market in Yishui County and promote exclusive operation in the region. In addition, Yishui Tongzhou or the joint venture company will build standard liquefied gas filling stations in designated areas as required by the government, and achieve full-process information operation. BINHAI INV stated that this cooperation will accelerate the integration of resources in the Yishui liquefied gas market, improve operational efficiency, and enhance the group's market influence in the region. It is reported that the cooperation intention letter is an intention document for the parties to promote cooperation in the future, without legal binding force, and specific cooperation shall be subject to formal contracts and relevant approvals.