Gansu Energy Chemical restructures operations, wins major construction contract

Gansu Energy Chemical Co., Ltd. approved the deregistration of its controlled subsidiary, Gansu Jingyuan Jema Mining Technology Co., Ltd. This action, approved by the board, aims to optimize resource allocation and enhance operational efficiency, aligning with the company's strategic development plans. It is not expected to materially affect overall business or profitability.

Concurrently, the company announced an internal equity transfer. Gansu Jingyuan Coal Industry and Electricity Power Co., Ltd. is transferring its 100% stakes in Gansu Huaneng Engineering Construction Co., Ltd. and Gansu Coal First Engineering Co., Ltd. to Gansu Energy Chemical. This consolidation aims to streamline management, enhance governance, and bolster the company's mining construction operations.

Furthermore, the board approved Gansu Coal First Engineering Co., Ltd.'s winning bid for a 35,862.59 million yuan construction project for Gansu Energy Qingyang Coal and Electricity Co., Ltd., a related party. In other news, the company will not downwardly revise the conversion price of its convertible bond, with the current conversion price remaining at 2.93 yuan per share, despite triggering conditions for adjustment. The company is also involved in a construction contract dispute for 51,453,752.05 yuan in unpaid engineering fees.