HONG KONG--(BUSINESS WIRE)--Blue Sky Power Holdings Limited (or “the Company”, together with its subsidiaries, the “Group”, HKSE stock code:6828) is pleased to announce that, Goldlink Capital Limited, a direct wholly-owned subsidiary of the Company, and an Independent Third Party entered into a MOU in relation to the Possible Acquisition of 98% of equity interest of Shenzhen Yuhai Energy Company Limited (“Yuhai”).
The Vendor through Yuhai, holds 51% equity interest in Chongqing Saiguangbo Technology Company Limited (“Saiguangbo”), which in turn holds 100% equity interest in Shanxi Minsheng Natural Gas Co., Ltd. (“Shanxi Minsheng”) and Yongji Minsheng Natural Gas Co., Ltd. (“Yongji Minsheng”).
Shanxi Minsheng mainly engages in the supply of piped gas to residential households, commercial and industrial users, and operation of 5 compressed natural gas refuelling stations for vehicles in Yuncheng City, Shanxi Province. It has completed the connection for approximately 120,000 residential households and approximately 780 commercial and industrial users. For the year ended 31 December 2015, total gas sales volume of Shanxi Minsheng amounted to approximately 70 million cubic meters. Shanxi Minsheng entered into a number of operation rights agreements with the local government of Yuncheng City in Shanxi Province, in which It was granted the build-operate-transfer and exclusive operation rights for terms of 20 to 25 years, commencing from March 2006, October 2009, September 2011 and July 2012, for the supply of natural gas via gas pipelines within the Urban Planning Area in Yuncheng City and the new development areas, such as Yanhu, Konggang and Yuncheng Economic Development Zone.
Yongji Minsheng is principally engaged in the supply of piped gas to residential households, commercial and industrial users, and operation of 2 compressed natural gas refuelling stations for vehicles in Yongji City, Shanxi Province. It has completed the connection for approximately 13,000 residential households and approximately 40 commercial and industrial users. During the year ended 31 December 2015, total gas sales volume of Yongji Minsheng amounted to approximately 18 million cubic meters. Yongji Minsheng has entered into a franchise operation agreement with local government of Yongji City, pursuant to which Yongji Minsheng is granted an exclusive operation right for 30 years commencing from November 2008 to invest in and operate the city pipeline system to provide and distribute piped natural gas in Yongji City, Shanxi Province.
Mr. Tommy Cheng, Co-Chairman and Executive Director of the Group, said, “We believe that the possible acquisition will enable us to expand our natural gas operations in the PRC and benefit the Company and Shareholders as a whole, by increasing the Group’s revenue source; and expanding the Group’s geographical footprint into Shanxi Province of PRC, where the Company have not had any presence previously.”
Blue Sky Power Holdings Limited
Since 2014, Blue Sky Power Holdings Limited (HKSE stock code:6828) has focused on transforming itself into an integrated natural gas provider, distributor and operator, with an emphasis on the mid- to downstream side of the natural gas industry value chain. Our natural gas business encompasses: (i) construction and operation of compressed natural gas (“CNG”) and liquefied natural gas (“LNG”) refueling stations for vehicles; (ii) construction of natural gas pipelines and operation of city gas projects by providing piped gas; (iii) direct supply of LNG to end-users; and (iv) trading and distribution of CNG and LNG.
Blue Sky Power has adopted its own “One Belt, One Road Expansion Strategy” to expand along key coastal economic areas and north-western provinces that have rich gas source. The Group has business presence in several provinces in the PRC, including Liaoning, Shandong, Anhui, Zhejiang, Hubei, Sichuan and Hainan.