Summary by Moomoo AI
On 14 May 2024, Shandong Xin Energy announced that its wholly-owned subsidiary Yingyu Hong Kong has entered into an investment cooperation agreement with Shandong High-Speed New Energy Development to jointly establish a joint venture Shandong Expressway Luzhong New Energy Co., Ltd., in China. The registered capital of the joint venture is RMB 6000 million, Yue Hong Kong invested 40%, i.e. RMB2400 million, and Shandong High-Speed New Energy Development invested 60%, i.e. RMB 3600 million. The joint venture will be primarily engaged in the development, investment and operation of the power generation, power distribution and power supply, energy storage, photovoltaic and wind power businesses. Under Chapter 14A of the Listing Rules, this transaction constitutes a connected transaction but is exempt from compliance with the Circular and Independent Shareholders' Approval Requirements, since the applicable percentage combined calculation exceeds 0.1% and is less than 5%. The establishment of the joint venture will help to optimize the allocation of resources for Yamagao and new energy and enhance its market competitiveness and market position.