Zhitong Financial APP News, Beijing Energy International (00686) issued a notice about the establishment of infrastructure funds. The Infrastructure Fund currently owns Yulin Company (which has a 300 MW photovoltaic project in Shaanxi Province, China) and Jingtai Company (which has a 100 MW photovoltaic project in Hubei Province, China).

The company plans to expand the infrastructure fund to acquire additional assets. To this end, the Infrastructure Fund will further raise funds through the issuance of these units. Yunnan Baoshan (an indirect non-wholly-owned subsidiary of the company) together with Jingneng Tongxin (which is expected to enter into a joint action deed with the Group on the Infrastructure Fund) intends to subscribe for 51% of these units. The proceeds from further fund-raising will be used for the acquisition of all shares of the project company from Yunnan Baoshan by the Infrastructure Fund. The application materials for further financing of the Infrastructure Fund have been received by the China Securities Regulatory Commission and the Shanghai Stock Exchange for approval.

As at the date of this announcement, Yunnan Baoshan is transferring the relevant assets to the target company (namely the 315 MW Sujiahekou Hydropower Station Project and the 168 MW Songshan Hekou Hydropower Project located in Tengchong, Baoshan City, Yunnan Province, China). After the proposed transfer is completed, the infrastructure fund will hold all the shares of the project company, while the project company will own the relevant assets. After the proposed transfer is completed, the project company will remain a subsidiary of the company.

The proposed transfer will serve as a good example of demonstrating the company's financing capabilities in different financing channels, thereby improving the company's image and position in the capital market; the Group will provide working capital to the Group with the net proceeds received from the proposed transfer, thereby enabling the Group to reduce its net borrowing, thereby improving its liquidity and leverage position; the proposed transfer will provide additional funding for the original stakeholder, Baoshan, Yunnan. The additional funding will enable Baoshan in Yunnan to further develop its existingBestplaytoearncryptogamesiphoneHe promotes his business by investing in renewable energy projects and funding new investment opportunities; the proposed transfer will further reduce the operational risk of the original stakeholder Baoshan in Yunnan. As a result of the proposed transfer, Yunnan Baoshan has carried out a series of rectification measures for related assets, such as resolving non-compliance issues. These measures are expected to bring Yunnan Baoshan and related assets more in line with applicable laws and regulations, and the proposed transfer will further expand the scope and enrich the composition of the Infrastructure Fund's investment portfolio. At the same time, the move is expected to broaden the investor base of infrastructure funds, thereby increasing liquidity and improving their performance in the secondary market. The company expects that the above situation will enhance the confidence of existing investors and attract more investors in the future; and that the proposed transfer will enable the company to realise some of the relevant assets and realize its valuation potential in the form of upfront cash proceeds, and to enable shareholders to benefit from the company's continuing interest in the infrastructure fund in terms of stable income generated from the relevant assets and future development.