Baoxin Energy Signs Agreement with China Shenhua

The three quarterly reports released by Baoxin Energy in the evening of October 15 showed that the company achieved a net profit of 113 million yuan in the third quarter of this year, an increase of 151.8% year-on-year. In the first three quarters of this year, it achieved a net profit of 270 million yuan, a year-on-year increase of 71.81%.

Baoxin Energy reported that it closed at 4.1 yuan per share on October 16 and was down 0.97.

Dongbaolihua New Energy Co., Ltd. announced yesterday evening that Baoxin Energy and China Shenhua Energy Co., Ltd. (on October 15) have accelerated the implementation of the "Strategic Cooperation Framework Agreement" signed by the People's Government of Guangdong Province and Shenhua Group. China Shenhua, 601088.SH; 01088.HK) signed the "Strategic Cooperation Framework Agreement" to establish a long-term strategic partnership. According to the agreement, both parties will cooperate in depth in Guangdong ports, coal storage and distribution bases, and power projects. According to the agreement, both parties will give priority to partnering with each other in project investment and business development. The two sides agreed to actively carry out research and development of clean energy and renewable energy, give full play to capital, technology, and other advantages, develop marine resources rationally, and actively participate in the construction of a comprehensive marine economic pilot zone in Guangdong Province and promote the development of marine economy. In addition, China Shenhua is willing to take advantage of large-scale energy companies and conduct comprehensive cooperation with Baoxin Energy in terms of development and construction, equipment procurement, engineering design and construction, personnel training and technology research and development.

Earlier in late October 2011, Guangdong Province and China Shenhua signed the Strategic Cooperation Framework Agreement. During the “12th Five-Year Plan” period, China Shenhua focused on coal supply and transit reserves, thermal power project construction, clean energy development, and energy industry development. The areas of scientific and technological innovation, finance, and other fields have extensive cooperation with Guangdong. According to the agreement, while Shenhua is increasing its energy supply to Guangdong, it will also expand investment areas, strengthen the development and application of new low-carbon clean energy technologies, and promote the development of related projects.

Baoxin Energy stated that China Shenhua is the world's leading coal-based integrated energy company. The cooperation between Baoxin Energy and China Shenhua will help the company to strengthen its core business and expand the company's long-term development.