Xinte Energy sells subsidiary interest to fund new ABS program

Xinte Energy Co., Ltd. announced a discloseable transaction involving the disposal of 79.92% of Inner Mongolia Energy's interest in a partnership, corresponding to a subscribed capital contribution of RMB1,337 million. This disposal, formalized through a Partnership Transfer Agreement, is part of establishing the First Tranche Program, which involves issuing asset-backed securities (ABS) to acquire target equity interests. The transfer consideration aligns with the subscribed and paid-in capital contribution.

The transaction's proceeds will fund the First Tranche Program, a quasi-REITs offering on the SSE with a shelf quota of RMB3 billion. The total expected issuance scale for the First Tranche is RMB1,337 million, comprising RMB1,316 million for Senior Class ABS and RMB21 million for Subordinated Class ABS. This move aims to optimize the Group's asset-liability structure, revitalize existing assets, and enhance financing channels, thereby improving capital utilization.

Following the disposal, Xinte Energy will retain a 20.08% interest in the Partnership. Despite the disposal, the Group will continue to consolidate the Partnership's financial statements due to its subsidiary serving as the general partner and maintaining decision-making and management control. The company does not anticipate any gain or loss from the disposal, ensuring no adverse financial impact.