|Moves full steam ahead to expand new energy business; Hopes to build diversified integrated new energy enterprise|
HONG KONG, Jan 5, 2018 - (ACN Newswire) - Northern New Energy Holdings Limited ("Northern New Energy" / the "Group", stock code: 8246) today announced that it has entered into a sale and purchase agreement in relation to it conditionally agreed to acquire 91% of the registered capital in the amount of RMB18.2 million (approximately HK$21.9 million) of Tianjin Jin Re Natural Gas Sales Company Limited* ("Tianjin Jin Re Natural Gas"), a company engaged in operation of liquefied natural gas ("LNG") stations, including purchase and receipt from third parties, and sale and transmission of natural gas (including LNG). Total consideration of the acquisition is RMB78.4 million (approximately HK$94.4 million). Upon completion, Tianjin Jin Re Natural Gas will become a non-wholly owned subsidiary of the Group and its financial results will be consolidated into those of the Group.
Tianjin Jin Re Natural Gas holds two LNG stations in Tianjin, China and both enjoy geographical advantages, being at the junction of a number of main roads. One of the LNG stations has the largest LNG storage tank in Tianjin, which is located next to the North Outer Ring Line in Beichen District. As for the other LNG station, it is located in Beichen Industrial Park. The Beichen Industrial Park is the only industrial park in Tianjin that focuses on the pharmaceutical and medical sectors and their respective operations. Its tenants include many renowned state-owned enterprises.
By acquiring Tianjin Jin Re Natural Gas, the Group's business will expand at full speed from only undertaking projects in the past to covering also supply of LNG and gasified natural gas, as well as providing technical consultation service in Tianjin. The acquisition does not only broadening the income of the Group, but will also take the Group to new heights, and hence developing into an integrated new energy enterprise engaging in diverse businesses.
The Chinese government unveiled "2017-2021 Winter Clean Heating Plan in Northern China" in December 2017, with one of the key objectives of the "2+26" urban development plan for the Beijing-Tianjin-Hebei and surrounding areas being to replace burning of coal with natural gas and electricity, in agreement with national policy, the Group believes it stands prime to continue to develop its new energy business. In the long run, the Group will be able to expand its business step-by-step from Tianjin to the entire country. The management will also continue to explore suitable acquisition opportunities and team up with strong partners, with the aim of creating greater shareholder value.
Northern New Energy Holdings Limited
Northern New Energy Holdings Limited formerly known as Noble House (China) Holdings Limited, is a company listed on the GEM Board of the Hong Kong Stock Exchange since 2011 (stock code: 8246). In 2015, the Group began to develop new energy operations and R&D of related technologies, plus construction engineering business. The Group also operates restaurants, provides management services, and sells processed food and seafood. Also in 2015, the Group further diversified its business to cover also property investment.
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Jan 5, 2018 22:06 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Energy, Daily News
From the Asia Corporate News Network
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