Lu'an Environmental Energy revamps governance, streamlines operations, secures financing

Shanxi Lu'an Environmental Energy Development is undertaking comprehensive corporate governance reforms, including the cancellation of its Board of Supervisors, amending its Articles of Association, and changing its registered address. The company will also revise or repeal ten corporate governance regulations. Concurrently, the company is providing financial assistance totaling 126,801,522.26 yuan to two controlling subsidiaries, Shanxi Lu'an Environmental Energy Shangzhuang Coal Industry and Shanxi Lu'an Group Puxian Houbao Coal Industry. This assistance is in the form of entrusted or internal loans, each with a one-year term at an interest rate of 3.1%.

Furthermore, Lu'an Environmental Energy plans to shut down its Puxian Xindong Coal Industry mine due to depleted resources, aiming to optimize its production capacity structure. This mine, with a 600,000 tons/year capacity, has been operating at a loss. The company is also publicly transferring its 250,000 tons/year coking capacity indicators from its wholly-owned subsidiary, Shanxi Lu'an Environmental Energy Wuyang Hongfeng Coking Co., Ltd. Finally, Lu'an Environmental Energy has applied for a 1.5 bn yuan credit line from China Guangfa Bank Changzhi Branch for working capital, project loans, and other financing, with a three-year term.