On September 26, Gelonhui reported that TG Smart Energy (01083.HK) announced that on September 26, 2024, Ganghua Gas Investment (an indirectly wholly-owned subsidiary of the company) entered into a merger agreement with Shandong Ganghua, Shandong Jihua, Jinan Energy Group, and Zhonghua Gas (Jinan) (a wholly-owned subsidiary of Zhonghua Gas), and entered into a joint venture agreement with Jinan Energy Group and Zhonghua Gas (Jinan). According to the merger agreement (effective after approval by the company's shareholders at the shareholders' meeting), Shandong Jihua will be absorbed and merged by Shandong Ganghua. Shandong Ganghua currently has a 51% equity interest owned by Jinan Energy Group and a 49% equity interest owned by Zhonghua Gas (Jinan). Shandong Jihua currently has a 51% equity interest owned by Jinan Energy Group and a 49% equity interest owned by Ganghua Gas Investment. After the merger, Shandong Ganghua will be owned by Jinan Energy Group with a 51% equity interest, Zhonghua Gas (Jinan) with a 30.3% equity interest, and Ganghua Gas Investment with an 18.7% equity interest, while Shandong Jihua will no longer exist as a legal entity.

The merger is carried out by the existing shareholders of Shandong Jihua and Shandong Ganghua in order to align with the 'One Network' gas development plan proposed by the Jinan Municipal People's Government. Through Shandong Ganghua (with the group holding its 18.7% equity interest) expanding its operating scale and scope in Jinan City, enhancing market share, aiming to gain advantages and lead in the 'one city, one enterprise' gas reform.