On October 11, Gelonhui announced that in accordance with the Shanxi Provincial Government's 'Opinions on Orderly Advancing the Successive Allocation of Coal Resources to Ensure the Stable Production and Supply of Coal Mines' (Jin Zhengfa [2022] No. 2) and other relevant normative documents and policy spirit, in order to strengthen the company's coal resource reserves and sustainable development capabilities, and combined with the actual situation of the company's market-oriented auction of coal resources, to effectively enhance the company's core competitiveness and protect commercial secrets, the 7th board of directors of the company approved in its 20th meeting, the board has authorized the general manager to 'continuously purchase coal resources through market-oriented bidding within 12 months, not exceeding 30% of the company's most recent audited total assets or 50% of the net assets', with the authorization period starting from February 8, 2024, for one year.
In accordance with the above-mentioned authorization, the company won the coal exploration right of the Shangma area in Xiangyuan County, Shanxi Province with 12.126 billion yuan on August 21, 2024. Based on the current public announcement of the planned transfer of coal resources in Shanxi Province, and taking into account the company's authorization quota usage and remaining period, in order to further ensure the company's competitiveness in the market-oriented bidding for coal resources and protect the company's commercial secrets, the board of directors intends to propose to the shareholders' meeting to further increase the authorized amount and period for bidding for coal resources.
In accordance with the 'Company Law' and other laws and regulations, the regulatory normative documents of the China Securities Regulatory Commission, the Shanghai Stock Exchange, and the relevant provisions of the company's Articles of Association, the board of directors of the company intends to propose to the shareholders' meeting to authorize the general manager to handle 'transactions within 12 months through market-oriented bidding for coal resources not exceeding 50% of the company's most recent audited total assets (excluding 50% of total assets)', as well as matters related to the advance payment of guarantees required for market-oriented bidding for coal resources, issuing guarantees, etc. At the same time, authorize the general manager to sign relevant coal resource bidding agreements, guarantees (guarantee letters) and other legal documents on behalf of the company based on the above matters. The authorization period is one year from the date of approval by the company's shareholders' meeting.
