ãFor Immediate Releaseã 8 June 2022
Binhai Investment Company Limited
(Stock Code: 2886.HK)
Two Major Shareholders, Tianjin TEDA and Sinopec Natural Gas, Entered into Framework Agreement
Jointly Promote High-Quality Development of Binhai Investment
[Hong Kong â 8 June 2022] One of Chinaâs leading clean energy providers â Binhai Investment Company Limited (âBinhai Investmentâ, together with its subsidiaries, the âGroupâ, stock code: 2886) is pleased to announce that the two largest shareholders of the Group, Tianjin TEDA Investment Holding Company Limited (âTianjin TEDAâ) and Sinopec Natural Gas Co., Ltd. (âSinopec Natural Gasâ) has entered into a 5 years âFramework Agreement on Further Promoting High-quality Development of Binhai Investment Company Limitedâ (the âAgreementâ) on further promoting high-quality development of the Group.
Tianjin TEDA currently holds approximately 39.5% of the ordinary shares of the Company. Tianjin TEDA is a Tianjin cross-border state-owned capital investment company and is the backbone enterprise undertaking the construction and operation of urban infrastructure and the development of urban renewal projects in Tianjin. China Petroleum & Chemical Corporation, the parent company of Sinopec Natural Gas, holds approximately 29.99% of the Companyâs ordinary shares. As a special unit under Sinopec, Sinopec Natural Gas is primarily responsible for the construction, operation and management of natural gas storage and transportation facilities such as natural gas pipelines and LNG receiving stations, natural gas market and sales operations, the development amd management of local pipeline networks and terminal gas projects and joint venture cooperation.
Against the backdrop of the deepening reform of Chinaâs oil and gas system, Tianjin TEDA and Sinopec Natural Gas both believe that they should further leverage their respective advantages, deepen strategic cooperation, and seize opportunities to promote high-quality development of Binhai Investment. With the fundamental goal of making the Group bigger, stronger and better, both parties will work out short-term, medium- and long-term cooperation plan through friendly negotiation. Leveraging on the resources of our shareholders, especially Sinopecâs leading position in the natural gas industry and through a series of industry-financial interactions, Binhai Investment will be able to leverage on its core competitive advantages in the upstream and downstream natural gas industry chain, and will be able to effectively enhance the Companyâs influence and competitiveness in the natural gas industry to become the top-tier enterprise in the industry in the near future. At the same time, the use of natural gas-related or derived new energy sources will accelerate Binhai Investmentâs transformation into an integrated energy supplier, developing the Group into a bridge that extends the brand value of the Signing Parties and makes full use of overseas capital market resources.
According to the Agreement, Tianjin TEDA undertakes:
And Sinopec Natural Gas undertakes:
Both parties will establish a leading group for deepening cooperation to regularly discuss the proposals in relation to the Company for deepening cooperation, including cooperation strategies, cooperation projects and equity arrangements, as well as to coordinate and solve major problems encountered in the process of deepening cooperation. Binhai Investment believes that the signing of the Agreement is of strategic significance to the Companyâs long-term development, and will accelerate the realization of the Companyâs corporate mission of becoming a first-class integrated energy advocate and supplier. In the future, under the cooperation of the two major shareholders, Binhai Investment will combine the Company's existing business model and clearly define the â14th Five-Year Planâ development strategy of âcultivating the gas industry and optimising the industrial chain in all aspects; accelerating the research and forward-looking deployment of integrated energy and smart energyâ, effectively improve the Companyâs profitability, professional service capabilities, safety management capabilities, and industry and finance interaction capabilities, so that the Company can play the role as a platform to implement the both partiesâ clean energy strategies to achieve a win-win situation for all parties.
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About Binhai Investment Company Limited
Binhai Investment Company Limited (stock code: 2886) established in 1994, and listed on the main board of the Hong Kong Stock Exchange in 2014, is a leading clean energy service provider in China. The main business is to invest in the construction and operation of urban gas pipeline networks in China, provide connection services, supply and deliver natural gas and liquefied petroleum gas and provide clean energy to industrial and commercial users and urban residents. It has been committed to developing the urban gas business in China and was one of the first foreign-funded companies to get involved in the city gas business in China and have been devoted to expanding our business in Chinaâs gas market. The Groupâs business is distributed across seven provinces and two cities across the country, with a total of 40 operating units, and has become a national clean energy supplier.
This press release is issued by DLK Advisory Limited on behalf of Binhai Investment Company Limited.
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08/06/2022 Dissemination of a Financial Press Release, transmitted by EQS Group.