JNCEC (00579): Jingxi Power has increased its investment in Jingxi Gas Thermal Power by about 280 million yuan for land use rights.

JNCEC (00579) announced that on September 3, 2026, the company and the target company (its wholly-owned subsidiary Beijing Jingxi Gas Thermal Power Co., Ltd.) entered into a capital increase agreement with Jingxi Power. According to this agreement, Jingxi Power conditionally agreed to subscribe for the newly increased registered capital of the target company by using land use rights as payment, which were assessed at approximately 280 million yuan. After the proposed subscription is completed, the companys equity in the target company will decrease from 100% to 87.95%, and the target company will continue to operate as a subsidiary of the company. Jingxi Power will hold 12.05% of the equity in the target company. It is reported that Jingxi Power acquired the land through a state-owned construction land use rights transfer method (industrial land) in December 2011, with a transfer period of 50 years, an original acquisition price of 22.61 million yuan, and an area of 109,690.27 square meters. The target company mainly engages in gas power generation and heating supply. In the past, due to several issues related to the boundaries of the construction land, the target company primarily operated on the land through a leasing arrangement with Jingxi Power, which holds the land use rights. Although the target company owns and operates facilities on the land, it does not have the land use rights. After the proposed subscription is completed, the land use rights will be transferred to the target company, aligning the holder of the land use rights with the ownership and operation of the facilities on that land. The proposed subscription will be completed through contribution based on the relevant land use rights, which will enable the target company to integrate the land use rights with the ownership of the properties on the land and further standardize the ownership structure of the relevant assets. The target company plans to carry out a waste heat utilization project, which will involve construction on the land, including the installation of a flue gas waste heat recovery system behind the vertical waste heat boiler, combined with circulation units, to recover flue gas waste heat, thereby enhancing heating capacity, optimizing the heating structure, reducing gas consumption, and improving the operating performance of the target company. The proposed subscription will assist the target company's follow-up project approval and other related procedures for the proposed waste heat utilization project, and provide a more appropriate asset and ownership structure for the sustainable development and operation of the project. The proposed subscription will help to effectively utilize relevant resources, enhance the target companys ability to further develop and realize the economic benefits generated by the waste heat utilization project, and mitigate potential risks arising from the historical disconnection between the land use rights and the relevant properties on that land.