On June 19, Grains Valley announced that its wholly-owned subsidiary, Shenzhen Binhai Energy Co., Ltd. (“Shenzhen Binhai Energy”), and Yonghe Guoxin Gas Sales Co., Ltd. (“Yonghe Guoxin”) had signed an annual natural gas purchase and sales contract.
Yonghe Guoxin is a wholly-owned subsidiary of Shanxi Huaxin Gas Sales Co., Ltd. (“Huaxin Gas”), which is 100% held by Shanxi Guoxin Energy Corporation (600617.SH). The upstream coalbed gas resource advantage of Huaxin Gas with competitive gas prices supports the supply of natural gas to Shenzhen Binhai Energy to support the Group's gas business in mainland China.
The cooperation between Shenzhen Binhai Energy and Yonghe Guoxin indicates that the Group is continuously enriching the natural gas resource pool in North China, constantly improving the Group's cost control capabilities, and further developing and serving the natural gas market. The Group and Huaxin Gas will also use this cooperation as a starting point to build a long-term and comprehensive deepening cooperation relationship based on their respective resource advantages, and achieve high-quality development.