Core Viewpoint - Kunlun Energy (00135) announced that China National Petroleum Corporation (CNPC) and Shandong Shengli Oil & Gas Co., Ltd. have signed a letter of intent for a potential transaction involving the sale of stakes in Nantong CNPC and Ganhe CNPC [1] Group 1: Transaction Details - CNPC intends to sell a 51% stake in Nantong CNPC and a 40% stake in Ganhe CNPC to Shengli Oil & Gas [1] - The payment for the stakes may be made through a combination of share issuance and cash [1] - Negotiations are still ongoing, and no legally binding agreement has been established yet, indicating that the transaction may not be finalized [1] Group 2: Business Operations - Nantong CNPC primarily engages in natural gas sales and gas pipeline construction [1] - Ganhe CNPC also focuses on natural gas sales and gas pipeline construction [1]

Core Viewpoint - The company Kunlun Energy (00135) announced that China National Petroleum Corporation (CNPC) and Shandong Shengli Oilfield Company have signed a letter of intent for the sale of stakes in Nantong CNPC and Ganhe CNPC, indicating potential strategic shifts in the natural gas sector [1] Group 1: Transaction Details - CNPC intends to sell a 51% stake in Nantong CNPC and a 40% stake in Ganhe CNPC to Shengli Oilfield [1] - The payment for the stakes can be made through a combination of share issuance and cash [1] - The negotiations are ongoing, and no legally binding agreement has been established yet, meaning the transaction may not be finalized [1] Group 2: Business Operations - Nantong CNPC primarily engages in natural gas sales and gas pipeline construction [1] - Ganhe CNPC also focuses on natural gas sales and gas pipeline construction [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 昆 侖 能 源 有 限 公 司 KUNLUN ENERGY COMPANY LIMITED (incorporated in Bermuda with limited liability) （股份代號：00135.HK） 自願公告 香 港，2025年10月30日 於 本 公 告 日 期，董 事 會 成 員 包 括 劉 國 海 先 生 為 主 席 兼 執 行 董 事、錢 治 家 先 生 為 行 政 總 裁 兼 執 行 董 事、呂 菁 女 士 及 戚 振 忠 先 生 為 非 執 行 董 事，及 辛 定 華 先 生、曾 鈺 成 先 生 及 郭 志 成 先 生 為 獨 立 非 執 行 董 事。 本 公 告 乃 由 昆 侖 能 源 ...

Core Viewpoint - Kunlun Energy (00135) has entered into a sale agreement to transfer 51% and 49% stakes in Xinjiang Xin Jie Petroleum Co., Ltd. to PetroChina Xinjiang for a total consideration of RMB 13.5035 million, aiming to enhance resource allocation and focus on core urban gas distribution and sales business [1]. Group 1 - The transaction involves Kunlun Energy's wholly-owned subsidiary Xinjiang Xin Jie, along with PetroChina Xinjiang and Xinjiang Heng Sheng, selling stakes in the target company [1]. - The target company primarily operates gas stations in northern Xinjiang and is managed by Xinjiang Xin Jie [1]. - The board believes that the sale will allow the group to allocate and utilize resources more effectively, with the goal of increasing market share and business efficiency [1].

Core Viewpoint - Kunlun Energy (00135) has entered into a sale agreement to transfer 51% and 49% stakes in Xinjiang Xin Jie Petroleum Co., Ltd. to PetroChina Xinjiang for a total consideration of RMB 13.5035 million, allowing the company to focus on its core business of urban gas distribution and sales [1]. Group 1 - The sale involves Kunlun Energy's wholly-owned subsidiary Xinjiang Xin Jie, PetroChina Xinjiang, and Xinjiang Heng Sheng, with the target company primarily operating gas stations in northern Xinjiang [1]. - The board believes that the sale will enable the group to allocate and utilize its resources more effectively, aiming to enhance market share and business efficiency [1]. - The transaction is viewed as beneficial for the company and its shareholders overall [1].

Investment Rating - The report assigns a "Buy" rating for several key companies in the public utility sector, including China Resources Power, Guodian Power, and Inner Mongolia Huadian [28]. Core Insights - The public utility sector is crucial for achieving national "dual carbon" goals, with a strong emphasis on environmental and social issues in the ESG evaluation framework [5][4]. - The ESG evaluation system for public utilities includes four categories of positive indicators and one category of negative indicators, focusing on objective assessment metrics [8][23]. - Recent policies from various government departments emphasize the need for green transformation, pollution prevention, and social welfare in the public utility sector [5][4]. Summary by Sections 1. ESG Policy in Public Utilities - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transformation essential for national goals [5]. - Key policies include the "14th Five-Year" energy conservation and emission reduction plan, which outlines specific requirements for green transformation and public service stability [5][4]. 2. ESG Evaluation System Construction - The ESG evaluation system consists of four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, with a total of 18 primary indicators and 35 secondary indicators [8][23]. - The negative category focuses on violations and penalties, with specific metrics for environmental, social, and governance aspects [23]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [10][9]. 4. Environmental Indicators - Environmental indicators are based on energy conservation, low carbon, and circular economy principles, with a total of four primary indicators focusing on emissions management, ecological compliance, resource utilization, and climate strategy [11][12]. 5. Social Indicators - Social indicators highlight the public utility sector's role in community development and social stability, with six primary indicators covering community contributions, employee development, innovation, supply chain responsibility, product safety, and core operational responsibilities [15][16][17]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance and decision-making, with five primary indicators focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [19][20][21]. 7. Negative Indicators - The negative indicators focus on compliance issues, with penalties for violations in environmental, social, and governance areas, deducting points for each violation [23][25].

Core Viewpoint - Kunlun Energy (00135.HK) announced a sale agreement involving its subsidiaries, transferring a total of 100% equity in Xinjiang XinJie Petroleum Co., Ltd. to PetroChina Xinjiang for a total consideration of RMB 13.5 million, aiming to enhance resource allocation and focus on core urban gas distribution and sales business [1]. Group 1 - The sale involves the transfer of 51% and 49% equity stakes by Xinjiang Hengsheng and Xinjiang XinJie, respectively, to PetroChina Xinjiang [1]. - The board believes that this transaction will allow the company to allocate and utilize its resources more effectively [1]. - The objective of the sale is to enhance the company's market share and operational efficiency [1].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 昆 侖 能 源 有 限 公 司 KUNLUN ENERGY COMPANY LIMITED (incorporated in Bermuda with limited liability) （股份代號：00135.HK） 關連交易 轉讓目標公司之股權 買賣協議 董事會欣然宣佈，於2025年10月30日，新疆新捷、中石油新疆、新疆恆晟與目標公司訂立買賣協 議，據此，新疆恆晟及新疆新捷分別同意向中石油新疆轉讓目標公司的51%及49%股權，總代價為 人民幣13,503,500元。 進行出售事項之理由及裨益 董事會認為出售事項將使本集團能夠更有效地分配及利用其資源，專注於城市燃氣的分銷及銷售 等主要業務，並以提升本集團的市場份額及業務效率為目標。因此，董事會認為，出售事項將對 本公司及股東整體有利。 上市規則之涵義 截至本公告日期，中石油香港有限公司持有本公司4,708,302,133股股份，佔本公司已發行股本的 ...

Investment Rating - The report maintains a positive outlook on the public utility sector's central enterprises with a focus on the ESG evaluation system [1]. Core Insights - The establishment of the ESG evaluation system for public utilities is based on a balanced emphasis on environmental and social issues, crucial for achieving national carbon neutrality goals [3][9]. - The evaluation system consists of four categories of positive indicators and one category of negative indicators, with a total of 18 primary indicators and 35 secondary indicators [12][28]. - Key policies guiding the sector include promoting renewable energy, enhancing energy efficiency, and ensuring equitable public services [9][11]. Summary by Sections 1. ESG Policy: Balancing Environmental and Social Issues - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transition vital for national carbon goals [3][9]. - Recent policies emphasize the development of clean energy and pollution control, with specific directives from various government bodies [9][11]. 2. Constructing the ESG Evaluation System: Multi-Dimensional Assessment - The ESG evaluation system is structured with four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, along with one negative category for violations [12][28]. - Each category has specific indicators designed to objectively assess the performance of enterprises in the public utility sector [12][28]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [12][14]. 4. Environmental Indicators - Environmental indicators focus on energy efficiency and circular economy principles, with metrics for emissions management, ecological compliance, resource utilization, and climate strategy [15][17]. 5. Social Indicators - Social indicators highlight the sector's role in public service, with metrics for community contributions, employee development, innovation, supply chain responsibility, and customer rights [19][21]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance standards, focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [23][26]. 7. Negative Indicators - The negative category includes penalties for violations, with specific metrics for environmental, social, and governance infractions, where each violation results in a deduction of points [28][31]. 8. Valuation of Key Companies - The report includes a valuation table for key companies in the public utility sector, indicating ratings and projected earnings per share (EPS) for the years 2025 to 2027 [34].

Investment Rating - Maintain "Buy" rating for the environmental protection industry [1] Core Views - The Fourth Plenary Session emphasizes integrating green development into the modern industrial system, accelerating market-oriented resource allocation, and addressing local government debt as a key task for the 14th Five-Year Plan [9][10] - The report highlights significant growth in the environmental sector, particularly in clean energy, recycling resources, and waste management, driven by policy support and market reforms [12][14] Policy Tracking - The Fourth Plenary Session outlines the importance of green transformation as a systemic project across economic and social development, with specific measures to achieve carbon peak and neutrality goals [9][10] - Key initiatives include accelerating the construction of a dual control system for carbon emissions, promoting green low-carbon energy transformation, and enhancing the circular economy [10][11] Industry Trends - The environmental protection sector is witnessing a surge in new energy sanitation vehicle sales, with a year-on-year increase of 63.18% and a penetration rate rise of 6.29 percentage points to 17.40% [6][9] - The report notes improvements in the profitability of biodiesel production, with stable prices for waste cooking oil and rising net profits [12][14] Investment Recommendations - Focus on clean energy operations, particularly in green electricity and green hydrogen, with specific companies recommended for investment [12][14] - In the recycling sector, companies involved in biofuels and recycled plastics are highlighted as key investment opportunities [12][14] - The report suggests that market-oriented pricing reforms in waste and water management will enhance cash flow stability and profitability for companies in these sectors [13][14] Company Tracking - Longjing Environmental plans to raise 2 billion yuan through a private placement to enhance its capital structure and support growth in green electricity and energy storage [12][14] - The report indicates that companies in the solid waste sector are experiencing improved cash flow and dividend payouts, with notable increases in free cash flow and dividend ratios [19][20]