[ET Net News Agency, 18 May 2018] Kunlun Energy (00135) said it entered into capital
increase agreements with Changqing Petroleum Exploration Bureau Collective Assets
Investment and Management Centre (Changqing Collective Investment), Tianjin Dagang
Oilfield Labour Services Company and Songyuan Jiyou Investment Co., Ltd. respectively.
Changqing Collective Investment agreed to make an additional contribution of Rmb10.75
million to the capital of Xi'an Qinggang Clean Energy Technology Co., Ltd., Dagang
Oilfield Labour Services agreed to make an additional contribution of Rmb4.62 million to
the capital of Binhai Xinneng Co., Ltd., and Jiyou Investment agreed to make an additional
contribution of Rmb23.38 million to the capital of Jilin Jigang Clean Energy Co., Ltd.
Upon completion, the registered capital of Qinggang Company will increase to Rmb336.6
million from Rmb330 million, in which Kunlun Energy's shareholding will be reduced from
51% to 50% and Changqing Collective Investment's shareholding will increase to 50% from
49%, the registered capital of Binhai Xinneng will increase to Rmb229 million from Rmb224
million, in which the Kunlun Energy's shareholding will be reduced to 50% from 51% and
Dagang Oilfield Labour Services' shareholding will increase to 50% from 49%, and the
registered capital of Jigang Company will increase to Rmb1,020 million from Rmb1,000
million, in which Kunlun Energy's shareholding will be reduced to 50% from 51% and Jiyou
Investment's shareholding will increase to 50% from 49%.
Kunlun Energy expects to record a gain of about Rmb174 million from the capital
increases.
Kunlun Energy said Qinggang Company, Binhai Xinneng and Jigang Company have recorded
poor operational performance and have been loss-making in recent years, and the capital
increases will enable the equity restructuring of the three companies. These companies all
have liquefied natural gas plant assets which have been unutilised or operated in an
inefficient manner for long. Upon completion of the equity restructuring, the excessive
capacity may be removed from the financial statements of Kunlun Energy. (HL)